How to Keep your Sensitive Excel Files Safe with Data Room’s Help

Excel is a standard tool that comes with other Microsoft programs. They are essential for all organizations and any office worker should be able to use them. Excel usually contains a lot of confidential information that is well organized, making it a valuable prey for cybercriminals. In this article, we will look at Excel’s internal security measures as well as protecting the program using a virtual data room.

Protecting Excel with a password

To set a password for a file with Excel does not need to do anything complicated. To do this, click on the “file” tab and go to the “information” section, then select the “protect the book” function and then “encrypt with a password”. Then you enter a strong password twice to confirm your actions and close the file. This is the basic protection that should preferably be present in all Excel files where confidential information is stored.

In addition to setting a password, you can also remove all functions of interacting with the document besides viewing, so that another user cannot download or modify the file if he does not have a password for the file. An additional feature of file protection is to require an electronic signature to access the file.

Problems with passwords

Finding the right password is not an easy task that requires some kind of middle ground. The password should not be too simple, but it is also impossible to make it extremely difficult because it is so difficult to remember and also makes access more difficult for other parties, who should also have access to this document. Also, password protection in itself is not the most reliable security method, because the more a person knows the password, the more vulnerable he becomes.

Also, do not forget that you and your employees or a potential third party will have to enter a password every time they need access to the file, and since we cannot make the same password for absolutely all confidential data, this becomes a real problem as it is tiresome and difficult. Plus, the more you enter your password into the system, the easier it is for hackers to crack it later.

And if you somehow lose your password, you will not be able to recover it, since Excel does not provide such an opportunity.

Additional protection features in Excel

Additional protection methods for Excel include three types of data encryption:

-Encryption at the level of the book – allows you to issue tasks to individual employees, and thus they can work with their specified sheets, while others are not

-Worksheet-level encryption – allows you to restrict interaction with the file to certain users, so that while some can work in the table, others do not have the right to make any changes, and can only view it

Bring Excel spreadsheets into a virtual data room

As it has already become clear, the security measures and precautions that are already built into the Excel program do not meet the corporate-level security standards. Therefore, for the proper security of your Excel files, third-party protection programs such as virtual data rooms are required. VDR has a well-deserved reputation as one of the most reliable tools for storing and exchanging documents. They have reliable state-of-the-art security protocols, data encryption, double authentication, and real-time document access control. Forget about external threats forever with a data room.

Why companies Need a Virtual Data Room for M&A

What are mergers and acquisitions? It is a business transaction that involves the sale or merger of two companies into one. To accomplish this, companies must carefully examine each other’s financial, legal, and other information. This long and tedious process of exchanging large amounts of documents was once a real problem. But now, with the help of a virtual data room, most of the problems associated with M&A can easily be solved. In this article, we’ll explain why VDRs are necessary for organizations during M&A transactions and how they can help.

Physical Data Room vs Virtual Data Room

Time is of the essence, and so sticking with the same old method when tons of new ones have been invented is at least very conservative, and at most detrimental to your company’s success and productivity. Traditional methods of storing and sharing documents like a physical data room entail many additional challenges. Not only company management needs access to documents, but also other specialists like lawyers, accountants, and bankers. Security guards and physical vault administrators are not able to control the entire situation, which increases the risk of document loss or leakage, as well as complete management chaos. It also entails additional time spent on travel and searching for the right documents and monetary costs.

The virtual data room, in its turn, can accommodate in its space not only an unlimited number of documents but also an unlimited number of users who can quickly find and study the necessary documents in real-time. This automatically saves time for your clients and your company as everything can be done remotely. Also, there is no need to spend money on the maintenance of the physical premises and all the employees who work there, plus materials.

Why do companies need a virtual data room for M&A?

Initially, the main task of the VDR was precisely in supporting the M&A process and due diligence, this remains one of its main purposes to this day. These programs have been designed specifically to simplify all possible processes and meet the needs of all users, it does this using the following features:

  • Persons, profiles, and access rights

Data room administrators are endowed with additional security measures called document access control. That is, in this way, the manager himself decides to whom to provide access to certain documents. This helps keep the workspace clean and organized, protects against data leaks, and reduces the likelihood of third-party distractions.

  • Corrections and replacements

If you need to make any updates or edits to the documents after the meeting, with the help of the WDR you can easily do this. The program also helps to notify all other participants in the data room about changes.

  • Select document

Company executives can create several rooms, each of which will correspond to a certain stage of the transaction. There is no need to upload and show to other users all files at once. You can upload the documents that are needed for the first stage, if everything goes well, proceed to the next, providing the next package of documents.

  • Terms

VDR administrators have the right to set the validity period of documents upon the expiration of which it becomes unavailable. By the same principle, you can set the period of stay of unauthorized users inside the VDR, after which the user will be automatically removed from the space.

Virtual Data Room Trends 2021

The demand for virtual data rooms has grown significantly over the past few years, although they were first created in the early 2000s. Now it is a rapidly growing and popular tool among business organizations. These programs have helped ensure the comfort and security of using documents without the need for a face-to-face meeting. As the demand for data rooms has increased, the VDR market has grown significantly over the past 15 years, and the current revenues from VDRs amount to over $800 million.  In this article, we’ll take a closer look at how the data room market has evolved and how it has changed for 2021.

What is a virtual data room?

Virtual data rooms can be compared to a digital library that holds all of a company’s valuable data. It used to be about the same. Companies stored all documents in a designated location, and during transactions, met with their potential partners in that location, discussed issues, and exchanged documents. But it was inefficient, insecure, and very tedious. 

With the advent of technological progress came VDRs, which completely replaced physical buildings and paper documents, as well as providing proper security and introducing automation or even artificial intelligence features.

Data rooms help reduce your precious time and money as the M&A process and other business transactions take up too many resources, they help you structure your data and have access to the information you need anytime, anywhere.

VDR growth and statistics

Significant revenue growth in the VDR market occurred in 2016, and as the statistics showed, most of that revenue came from big business companies, but smaller companies are also thriving on it. Things are going very fast in the market right now, with specialists predicting that annual supplier growth will be around 12% or even higher, so we can pretty much assume that VDR will get more attention from investors, and get proper funding into their technology.

Key Market Trends

IT and telecoms are expected to take a larger share of the market, and VDR as a part of it has improved dramatically in recent years. Right now, virtual data rooms are as follows:

  • VDR has spread to the online meeting rooms of everyone who participates in the agreement. Interaction and communication are now several times easier and more convenient. It’s also much more secure because VDRs protect all processes within the program and offer their tools throughout the entire transaction process
  • Blockchain-based technologies are emerging that greatly increase the level of security that VDRs provide. Since most of today’s business transactions take place online, many IT companies offer integrated technologies to improve the efficiency and speed of information transfer and communication
  • There has been a significant improvement in VDR across the IT space, and it can now act as a company-wide promotional tool
  • North America now has the largest share of the virtual data room market, as it is now actively using this tool in its activities, including not only commercial organizations, but also government and medical enterprises
  • Security is now a major issue for everyone, and therefore the demand for simple and secure spaces to store valuable data is more important than ever. The demand for VDRs is also growing because of their transparency and easy sharing
  • Growing demand for VDRs will also grow because of increased due diligence, fundraising, and M&A activity, which will increasingly spread throughout the region