Protecting Trade Secrets with Online Data Room Software

Use virtual data rooms (VDR) to protect your data. The competitiveness of companies of various profiles directly depends on protecting their confidential documents. Such data include customer databases, business plans, product information, and other trade secrets. Every day the volume of such documentation increases and requires storage space.

Therefore, experienced managers are implementing tools such as VDR. At the same time, online rooms prevent data leakage both through external and internal channels. So let’s take a closer look at protecting corporate secrets using data room software.

Protection Against Data Leakage through Internal Channels

It is not uncommon for companies to lose trade secrets due to unscrupulous employees. However, such actions are not always committed intentionally. For example, an employee may fall under the influence of scammers or transfer important information to competitors upon dismissal. The consequences for the company can be catastrophic – in some cases, information leakage leads to bankruptcy. To minimize such risks in your business, we offer several recommendations:

  • Enter into a non-disclosure agreement with each organization employee. The document should spell out what relates to corporate information and what liability awaits violators.
  • Install a DLP system to prevent attempts to transfer information to unauthorized persons. We also recommend using data room vendors to protect trade secrets during M&A transactions.
  • Use software to track employee activities. It can be webcams or special programs for following the action on a PC.
  • Get motivated by your team. A friendly, close-knit team focused on results will think about the successful completion of the project.
  • Limit access to electronic data. Implementation of online data room software will ensure secure data exchange and storage.

A tangible advantage of using online rooms is the ability to configure access rights. Thus, when planning a deal, you can determine what information will be available to each participant in the meeting. In addition, the service has integrated tools that greatly facilitate the process of mergers and acquisitions. Use them to improve the efficiency of your company and reach a new level in the business industry.

Protection Against Leakage of Company Data through External Channels

To steal corporate information is enough to gain access to your data. In this case, employees’ actions do not play a role in disclosing trade secrets. Instead, malefactors break into the mail and get remote access to computers or cloud storage. By infiltrating your virtual network, hackers get the opportunity to destroy the system from the inside. The use of virtual data rooms eliminates this possibility. You can also use the following protection methods:

  • Set complex passwords using special generators.
  • Use corporate mail, which is harder to hack.
  • Use multiple authentication steps if possible.
  • Use reliable antivirus software.
  • Recycle paper and digital documents.
  • Purchase access control and management systems for enterprises.
  • Think about methods of network protection and disk encryption on employees’ computers.

Use traffic control systems, WAF, and firewalls. These solutions will provide an easy exchange of information within the enterprise and protect data from leakage. When conducting acquisitions and mergers, analyze the offers of different virtual data room providers. Use the free period to choose the most suitable option for you. You should also consider the set of features integrated into the VDR.

Benefits of Using Online Rooms in M&A Deals

If a company aims to be a market leader, it should consider protecting trade secrets. After integrating the electronic data room, the risk of corporate information leakage when exchanging files between employees and external counterparties is significantly reduced. You also get the following benefits to improve information security:

  • Reducing incidents related to the leakage and compromise of company data;
  • Lowering the cost of investigating incidents – the history of each employee’s work with each document is stored;
  • Control access to company data, wherever they are. Possibility to revoke previously granted rights;
  • Maximum protection during data exchange;
  • Reports on the use of corporate information, data, and documentation.

The virtual data rooms will allow you to retain control over the files after being transferred to external users. This is especially true during mergers and acquisitions. You can generate settings so that the user must be authorized each time the document is opened. This tool allows you to manage access rights to corporate files centrally.


We hope that this data room review will explain the importance of using VDR during M&A transactions. Your company’s secrets are a tool base that gives you an edge in the market. Any data leak will undoubtedly affect the company’s reputation. You can also use data room services for conferences, attracting investors, and an online document repository. Integrate this tool into your business project, and you will get excellent results and reliable protection of trade secrets.

Leave a Comment

Try Our Answer Engine