The watermarking feature in the data room makes it more difficult to alter documents without being found. It can be useful for due diligence purposes and other M&A transactions where sensitive data is shared with multiple parties.
Certain VDR providers provide dynamic watermarking, which displays the viewer’s email address, IP address go to website along with the date and time of download and the name, on top of the files uploaded. Some also allow you to create an individual watermark and set the size and opacity.
It is important to know that watermarks are not effective when the file is password protected or encrypted in FirmRoom. In these instances users can download the original watermarked file.
If you use a data-room provider that comes with watermarks, be sure to test them by using their View As feature. This allows you to check whether a watermark appears on the PDF files downloaded to your computer.
Some VDR providers even have a feature that stops screenshots from being taken of your documents. This is a useful tool as some people will insist on being able print and keep physical copies of the files that are being shared with them. By taking the right steps, like preparing an M&A check list prior to time, granting permissions carefully and using watermarking in your data room, you will ensure that your participants are protected from any issues during transactions.
