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Data room confidential mode allows the administrator of the virtual data room to restrict the use of the VDR by a particular user based on his IP address or the type of device. It’s a useful tool for M&A deals as well as other shady business ventures.

A good service provider will provide users to customize their rights and two-factor authentication. They will also offer remote shred functions that erases documents that are downloaded after administrators have removed access. They will also be able to handle the most widely used file formats, including PDFs and Excel XLSXs. The most trusted providers will be able to add a watermark on files that users download, which can deter people from sharing copies the files online. They can set an expiration date on the files downloaded to prevent unauthorised downloads.

Redaction is yet another useful tool that allows administrators to block (black out) specific text fragments or areas of a file from authorized users. This feature is essential because it protects all sensitive business data and personally identifiable information from hackers. The most trusted VDR providers will be able to erase PDF, doc TXT, docx or ppt as well as gif, jpg and jpg files as well as Q&A files.

Some providers will let users print documents that automatically include a watermark and they can also permit users to download the original version of a file. In addition, a reliable provider will provide users with a question and answer feature that lets them discuss documents in the data room and store answers in an easily searchable database. This can be extremely useful for M&A deals as well as any due diligence project.