Data rooms are commonly employed in mergers and acquisitions for due diligence, but they can also be used to raise money, in the initial public offerings (IPOs) as well as legal instances. You’ll need a virtual data room management software that allows you to collaborate, share and store confidential documents in a safe environment. It can also help speed up due-diligence for any type business transaction.

A powerful search tool is a crucial feature of an VDR that allows you to locate any document within seconds. It should include a range of filters and features such as labels, tags, optical character recognition (OCR) and auto index numbering. In addition, it should allow you to download a secure PDF of any document in a single click.

You should also look for a tool that allows you to customize the appearance of a data room and add a customizable watermark that is displayed on each document when it’s printed, downloaded, or viewed. This allows you to prevent screen captures and other infringements of privacy and security.

A well-designed data room should have the ability to manage tasks that lets you assign users from outside to read and edit documents. It should give you complete information about each task’s status, so that you can keep track of the progress.