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How to Choose the Right Data Room Software for Business

Data room software provides a simple and secure way for businesses of all sizes to share documents. The most common application is for due diligence in M&A transactions. However, a wide variety of industries use virtual data rooms for other functions, including legal services as well as clinical and deal making pharmaceutical research mining and energy production, and real estate management.

A reliable virtual dataroom will allow you to customize the permissions based on the user, the document or the folder. It should also offer security features such as watermarking, two-factor authentication, and file encryption. Some vendors provide a secure messaging tool that can improve communication and reduce the risk of leaks in emails.

The most effective VDRs will come with a simple and easy configuration that can be used by anyone from the CFO to the accountant at entry level. The UI should also be able to support multiple deployment options, and be able to be customized to fit the branding of the business.

Choose a platform that has multiple pricing models like per-storage, the per-page model, or per user. These options should provide you with an understanding of the cost of using the platform and allow you to select the best plan for your needs.

Make sure that the data room you select includes tools for redaction, which allows you to eliminate sensitive information from a document without having to manually scroll through it. This feature is essential for companies that need to adhere to regulatory requirements such as HIPAA or ISO 27001, or raise money from investors. It is also helpful for businesses that are undergoing an acquisition or merger and have to go through large amounts of documents in a short period of time.