Data Rooms: A Comprehensive Comparison

When storing the data in a so-called data room, particularly high security requirements are imposed. The data is mostly secret or sensitive and not intended for the public. Data rooms are mainly used in the area of ​​corporate and real estate transactions, especially in mergers and acquisitions projects (M&A), due diligence reviews (DD) and portfolio management. In the e-government area, the data rooms are used for storing documents or for exchanging documents between secret bearers. Private individuals are increasingly using so-called electronic safes or digital lockers, also known as e-safes/e-safes, to store their data in a highly secure manner and to be able to access it decentrally.

Documents With Sensitive or Secret Data in the Data Room

The documents are therefore very confidential or secret information. For this reason, special security requirements are placed on a virtual data room and all processes are logged by software. The documents also receive an individual watermark that identifies the user. There are many other fields of application for data rooms. In the real estate sector e.g. For example, plans, extracts from the land register, invoices, minutes of meetings, etc. are made available to those involved in the project. “Data room” is a fixed technical term for the inspection of confidential documents for the purpose of examining an investment or a purchase. Until the early 2000s, the documents were not provided in a digital, but in a physical data room – e.g. B. with the lawyer or tax consultant who represented the company. Here it was logged by hand who viewed which folders or documents. The service is known internationally as the VDR service (“Virtual Data Room”).

Data Rooms With Web-Based Interface and Directory Structure

The documents are clearly stored for prospective buyers in a self-explanatory folder structure. The confidential documents are made accessible using a web-based interface (web browsers such as Mozilla Firefox, Google Chrome, Safari, Microsoft Internet Explorer). After logging in, the interested party is taken to a folder structure that contains the documents required for the due diligence process for viewing or downloading. The folder structure is analogous to the directory structure known from computers (such as Microsoft File Explorer or the Mac Finder). The provider has filed the documents here in a structured manner so that interested parties can navigate through the data in a clear manner.

Special Protection of Documents With Watermarks and Photo Protection

Each document page is protected by the watermark containing users and exact time of viewing. Photo protection can be activated as an option. The main task of a data room is to store and manage all data securely and, if necessary, to share it with other participants in protected mode. In order to guarantee their users a high level of security, a number of companies offer them a variety of advanced functions. In this regard, a login authentication that is divided into several stages has proven particularly effective – this ensures that unauthorized persons do not have access to the virtual documents. This ensures that users maintain maximum security in the virtual data room. Furthermore, an IP – as well as time-limited access and dynamic watermarks – ensure safe use of that service.

Data Room Comparison: How to Find the Right Provider

In the meantime, interested parties can choose from a number of providers who make their data room service available. The virtual data room comparison is therefore necessary. However, the decision for a specific company can be difficult. Above all, attention should be paid to comparing and contrasting the services – this is the only way to ensure that you find an offer that meets your personal needs 100%. In any case, a data room provider should include the following services:

  • Secure management of documents
  • Advanced search on all document indices and content
  • Web-based rights management
  • Logging of user activities
  • Management of multiple DD projects with the same account
  • bulk uploads
  • Approval of different file formats such as PDF, XLS, DOC etc.
  • Analyze the purpose of the virtual data room

Data room comparison checklist

In addition, before choosing a provider, you should be clear about what and how you want to use the data room. So you know exactly which functions the desired data room must have. At the same time, however, you also need to find out more about the company that provides the service. A comparison of the data room providers is worthwhile! Here we put together a checklist for you to choose a suitable data room provider in Germany. A reputable company will also be willing to provide you with a trial version of their VDR. Interested parties have the opportunity to try out all the functions of the data room free of charge and without obligation – most providers provide you with the free version for around 30 to 60 days. Before you decide on a specific product, you should also take a close look at the customer service. A reputable company should be available to you around the clock – this way any problems and ambiguities can be solved immediately. Ideally, the desired provider has already gained experience with complex financial transactions such as initial public offerings (IPO). In this way, you ensure that they already have a sufficient level of expertise and can also assist you with processes of this type if necessary.

Certifier Secure Data Center In Europe

The issue of “provision of the data room servers” also plays an essential role in the virtual data room. You should choose a provider that has a “secure data center” that has been certified by an independent certifier. We have already pointed out that the data room software should also be programmed so that no spy programs from secret services or competitors have been installed. If you appreciate a comprehensive service, you should choose companies that not only simplify the collection of data, but also simplify the process of business transactions.

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