The feature of watermarking in the data room makes it more difficult to alter documents without being discovered. It is beneficial in due diligence and other M&A deals where sensitive information needs to be shared with several parties.
Some VDR providers provide dynamic watermarking which will display the name of the viewer, email address, IP-address and the date and time of access on top of your uploaded files when they are printed, viewed or downloaded. Certain VDR providers permit you to design https://www.boardroomamerica.com/ensure-compliance-with-the-best-data-room-watermarking-and-audit-trail-feature/ your own custom watermark and alter its opacity as well as location.
It is important to remember that watermarks aren’t effective when the file is password protected or encrypted in FirmRoom. In these instances users can download the original file that is not watermarked.
If you are using a data room service with watermarks, you should test them by using their View As feature. This lets you determine whether there is a watermark on the PDF files that are downloaded to your computer.
Some VDR providers also have a feature that stops screenshots from being taken of your documents. This is a great feature as some people will insist on being able to print and have physical copies of the files that are being shared with them. By taking the proper precautions like preparing an M&A checklist prior to the time, and granting access with care, and using data room watermarking carefully, you can help your clients avoid any problems that might arise during the course of a transaction.
