Watermarking of data rooms is an attribute that makes it difficult to manipulate your documents without getting and subsequently caught. It is useful for due diligence and other M&A transactions where sensitive information is shared with multiple parties.
Some VDR providers offer dynamic watermarking, which displays viewers’ names, email address, IP-address, as well as the date and time of access over your uploaded files whenever they are viewed, printed or downloaded. Some even let you create a custom watermark and configure it to be opaque and in a specific position.
Be aware that watermarks don’t work as well when the file in FirmRoom is password protected or encrypted. In these instances users can download the original watermarked file.
If you do choose to use a data-room provider that comes with watermarks, be sure to test them using their View As feature. This lets you determine if a watermark is present on the PDF files that are downloaded to your computer.
Certain VDR providers provide functionality to prevent screenshots of your documents. This is a useful tool, as some people prefer physical copies of the documents they are sharing. By taking the proper precautions, like creating an M&A check list ahead of time, and granting permissions with care and utilizing watermarking in your data room, you can assist participants in avoiding any potential issues during transactions.