Free file-sharing applications like Google Drive or Dropbox are good for sharing files in small groups but they don’t provide the same level of security as data rooms do. They don’t have the features needed to transfer sensitive documents used in business, including watermarking, auditing, and permission settings. This is a serious issue particularly during M&A processes, when even a small leak could be costly for the deal and for your company’s reputation.

You should use a virtual data room to safeguard your private information. Firmex offers solutions for investment banking, biotech government, energy, and legal industries and is among the most popular platforms in its domain. Firmex uses multi-layered encryption when transferring and storing data, and has multiple server locations for disaster recovery. It also offers document control and DRM, such as dynamic watermarks, lock-down files and expiration dates to protect against data breaches.

Another excellent VDR is Box Cloud, a cloud-based storage solution that can be used for bidding, M&A, and contract negotiations. It offers bank-level encryption both in transit and at rest, and allows you to personalize the data room experience to reflect your own branding. It also offers high-quality data room software safety previews of more than 30 kinds of files, and a an extensive activity tracking. It also has a variety of integrations that make it simple to share content.