Due diligence in M&A transactions is the most commonly used application of an online data room. The sell-side requires an encrypted platform to store all documentation to be reviewed and the buyer’s prospective requires an easy access point to review them. A simple and user-friendly VDR is a m&a due diligence must for these transactions to be completed.
A VDR can also be used to form strategic alliances or take private companies public. Those types of projects require the sharing of documents and collaboration between partners from different locations and time zones. A virtual data room is a way for the quick transfer of information that helps to accelerate the decision-making process and facilitates seamless communication and collaboration between partners.
There are numerous vendors who offer an online data room. Some of the most well-known ones are Intralinks, Merrill Corp, Ansarada and Firmex. Many of these vendors have a free trial or a low-cost plan. They usually charge based on the amount of storage that is utilized or for the time that the online data room is functional. Some law firms with sophisticated M&A practices provide an online dataroom for their clients.
The most effective online datarooms have a simple and intuitive design, which is easily understood by the CFO as well as the entry-level accountants. They also offer a variety of deployment options and one sign-on for all of a company’s projects. Some of the best providers also allow custom branding of the virtual data room in order to reflect the company’s image and terms of service. They also have support teams that are available to answer any queries or questions.