Understanding Permissions for Subfolders

In M&A, controlling who sees what is critical to maintaining confidentiality and streamlining collaboration. DealRoom’s subfolder permissions allow you to grant access to specific sections of your data room based on user roles, without duplicating documents or creating multiple rooms. In this article, we’ll walk you through how to control subfolder permissions to keep your process secure, efficient, and tailored to your deal.

How Your Files Are Organized

Think of your files like a structured system:

Main Folders: These are your top-level folders that group documents by major categories.
Subfolders: These nest under the main folders and help break things down further. You can have multiple layers to keep things organized.

What Users Can Do (Access Types)

Different users need different levels of access. By assigning these permission types, you can control exactly what each user is allowed to do. Here are the permission options you can grant:

View/Read: Users can open and view files or folders but cannot make any changes.
Download (Watermarked): Users can download a copy with a visible watermark, usually for review.
Download (Original): Users can download an unmarked copy, typically for final use or editing.
Edit/Full Control: Users can upload, edit, rename, move, or delete files - they have full control over the content.

Giving Access to Groups

Permissions are managed through groups, such as Marketing or HR. To grant access, simply add users to the appropriate permission group. Each user can belong to only one group per room. When someone new joins, add them to the right group to give them instant access. When they leave, remove them from the group.

How Permissions Are Set (The Rules)

Inheritance (The Default Rule):

Normally, a subfolder automatically gets the same permissions as is parent folder.

Explicit Permissions (The Special Rule):

Sometimes, a subfolder needs different rules than its parent. This is where you set specific, direct permissions for that subfolder.
This special rule for the subfolder overrides what it would normally inherit from its parent.
If there's a conflict, the special, direct rules on a subfolder usually win over the inherited rules.

Note: The orange icon means a folder’s permissions are different from the top-level permissions. This usually happens when custom permissions are set on that folder instead of using the defaults.

New Folder & File Access Control: When setting permissions for a group, you can also define how users in that group will gain permissions for newly created folders and files. This control provides granular management for future content:

Inherit access from the parent folder: This option aligns with the default inheritance rule, meaning any new content will automatically get the permissions of the folder it's created within.
"No access" if the group has different permissions in the nested documents or files: This is a safeguard. If a group has specific, explicit permissions set for nested documents or files that differ from the parent, new content created within those nested areas will default to "No access" for that group, preventing unintended exposure.
Deny access completely: This option provides an absolute denial of access for the group to any new folders or files created, regardless of the parent folder's permissions. This ensures new content is strictly hidden from specific groups by default.

How to Manage Subfolder Permissions

To change who can access what in your subfolders:

Go to your specific room or project.
Click the Permissions tab at the top.
Choose the group you want to change permissions for.
Go to the Data Room tab (under the group name).
Click the arrow next to a folder to open it and see its subfolders. Keep clicking arrows to go deeper until you find the exact folder you need to set special permissions for.

Have questions about managing permissions or need further assistance? Reach out via the in-platform chat or email us at support@dealroom.net. We're here to help.

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Updated on: 30/07/2025

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