Watermarking in the data room is an option that makes it difficult to alter your documents without being in trouble. It can be useful in due diligence and other M&A transactions where sensitive information needs to be shared with multiple parties.
Some 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. Some VDR providers allow you to design your own custom watermark and alter its opacity as well as location.
It is important to keep in mind that watermarks are not as effective when the file is password protected or encrypted within FirmRoom. In these instances users can download the original file which is not watermarked.
Use the View As feature to see whether there is a watermark on the PDF files that you download. This lets you determine whether a watermark is visible on the PDF files that are downloaded to your computer.
Some VDR providers also have a feature that blocks screenshots from being taken of your documents. This is a helpful tool since some people prefer physical copies of the documents they are sharing. By taking the appropriate steps, including preparing an M&A checklist ahead of time, giving access to the files with care, and using the watermarking of data rooms wisely, you can help your participants avoid issues that may arise during an transaction.