What Is an Online Data Room For M&A?

What Is an Online Data Room For M&A?


A data room online is a storage space for documents accessible through the Internet and with secure access provided by user identification and password. It allows for savings in costs compared to traditional physical data rooms and provides many other advantages like simple search functionality, collaboration capability and the security of sensitive data.

When conducting M&A the seller must upload all relevant documentation to an online data room so that it can be viewed by the buyer’s side. This is crucial because due diligence is an essential aspect of the M&A process, and failing to have a complete set of documents could delay or end an acquisition.

M&A VDRs have a wide range of features. From simple drag-and drop file uploading, to optical character recognition that indexes and creates a logical structure of the data room by using index numbers. Some VDR providers of M&A offer document access with granular permissions which allow users to define the restrictions on access to each folder and file. Multi-factor authentication is another option, which lets users verify their identities in the simplest of steps like by entering an SMS code.

A reputable company that offers an online data room will have a support staff on hand to answer questions all hours of the day. Some providers offer a phone or chat line, whereas others offer several support channels, including live video and email. They also offer detailed assistance guides, as well as an area for Q&A where users are able to ask experts any questions.