An online data room online data room is a repository of documents accessed via the Internet, with secure access through user identification and password. It provides cost savings over traditional datarooms and a variety of benefits, such as a simple access to search and collaboration.
When conducting M&A, the selling company must upload all relevant documentation to an online data room in order that it can be examined by the buyer’s side. Due diligence is an important step in the M&A process, and failure to submit a complete set of documents can cause delays or even kill a deal.
M&A VDR providers have a variety of features, ranging from simple drag-and-drop uploading of files to optical character recognition that automatically indexes files and creates the logical structure of a data room with index numbers. Some of them offer granular document permissions, which give users the ability to specify access restrictions for specific folders and files. Multi-factor authentication is another option which allows users to verify their identity in only a few steps, like entering an SMS code.
A reputable online data room provider will have a support team who are available 24/7 to answer any questions. Some have chat support or a phone line, while others have support channels that include live video calls and email. They also provide detailed assistance guides and a Q&A section which lets users ask questions to experts.