Due diligence in M&A transactions is the most commonly used application of an online data room. The sell-side requires a secure storage platform for all documents that need to be viewed and the prospective buyer requires a single location to view the documents. A simple and user-friendly VDR is a necessity to complete these transactions.
A VDR can also be used for forming strategic partnerships or take private companies public. These types of projects require the sharing of documents and collaboration between partners in different locations and time zones. Virtual datarooms facilitate the swift transfer of information, which helps to speed the process of decision-making as well as allow for seamless communication and collaboration between partners.
There are a myriad of companies that offer an online data space. Intralinks Merrill Corp Ansarada and Firmex are some data room solution of the most well-known. Many of these companies offer a trial period for free or have a low-cost introductory plan. They also typically charge per unit of storage they use or the length of time the online data room will be in use. Some law firms with sophisticated M&A practices offer an online dataroom for their clients.
The best online data rooms have a clear and simple design that is easy to understand for the CFO and the entry-level accountant. They also offer a variety of deployment options and one sign-on to all of the projects of a company. Some of the top-rated providers also allow for custom branding of the virtual data rooms to reflect a company’s image and terms of service. They have dedicated support teams ready to answer any queries or questions.