Data rooms are used by many parties to store and exchange confidential documents in due diligence processes such as M&As, loan syndications and venture capital transactions. They help to improve communication between parties and provide a superior level of virtual data room security. The best virtual data rooms software solutions also include a number of useful features such as search functionality with granular access privileges, two-factor authentication and custom watermarks.

A virtual dataroom is beneficial for court proceedings, where sensitive information has to be shared remotely with lawyers, regulators, or other parties. They ensure the integrity of these files by providing secure and convenient remote access. They also permit all interested parties to look over the documents in one go and also eliminate travel costs.

Another advantage of an online deal room is that it enables companies to obtain reports on how their files are being used, and what users do inside the virtual repository and when. This feature allows companies to identify weaknesses in their processes and quickly correct them.

Some of the most reputable VDR providers provide a complete M&A Lifecycle Management solution which includes project management as well as workflow automating capabilities. These additional features increase transparency, efficiency and robust communication throughout a transaction. They also stop stakeholder burnout and loss of deal value. One example is Intralinks, which is priced higher than other solutions but provides a customized enterprise experience and a broad array of features that cover a range of industries.