Which Data Room Providers Are Best for M&A?

The most critical business transactions require an essential duties and responsibilities of the board secretary enormous amount of data that must be examined and promptly shared. This sensitive information can ruin an agreement or cost a company valuable revenue and market share if it falls into the wrong hand. This is why it is essential to ensure that only the right people are looking over the right information at all times. This is where a virtual room is useful. A virtual data room (VDR) can help streamline due diligence and M&A processes while protecting confidential files.

A VDR is an online secure repository that securely stores documents of a high-value for business and permits restricted access to internal and external stakeholders. It can also help reduce the possibility of file sharing without authorization by providing security-first functions like multifactor authentication session-timeouts, document-level permissions, watermarking, and view-only modes. A VDR is a great solution for M&A due diligence and other high-risk deals.

VDR providers vary in terms of features, ease-of use, and cost. Businesses should choose one that has an integrated repository that can be customized with access to data, detailed activity reports, and customizable metadata. They should also provide security and support services which help ensure the integrity of the system in the event in the event of an accident.

Datasite, RR Donnelley and Intralinks are the most favored providers. Each offers a full range of features and M&A tools however their pricing differs. In the lower tier there are companies such as Digify that offer meager functionality with a complex pricing tariff.