Data Room Watermarking

The data room watermarking feature makes it difficult to alter documents without being detected. It can be useful in due diligence and other M&A transactions where sensitive information must be shared with multiple parties.

Certain VDR providers provide dynamic watermarking, which shows the viewer’s email address IP address, email address as well as the date and time of download and the name, on top of the files uploaded. Certain VDR providers allow you to create your own custom watermark and alter its opacity, location, and opacity.

Note that watermarks do not work as well when the file inside FirmRoom is password protected or encrypted. In these scenarios, users can still download the original file, which is not watermarked.

Use the View As feature to determine whether there is a watermark on the PDF files you download. This allows you to check whether a watermark appears on the PDF files downloaded to your computer.

Some VDR providers also have a feature which prevents screenshots being taken of your documents. This is a great option, since some users prefer physical copies of the files they share. By taking the appropriate precautions, such as creating 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 issues that may arise during an transaction.