A virtual data room for M&A is an online secure repository of vdr For M&A business information that facilitates easy file sharing and collaboration between parties involved in an acquisition or merger. VDR providers such as Clinked offer several security features to prevent sensitive information from being accidentally shared with the incorrect audience. These security features include user permissions, activity logs and watermarking.

Due diligence in M&A is the most common use of the VDR. This stage of a deal will require a seller to provide prospective buyers with a range of documents, such as financial statements, legal documents as well as operational data. The buyer can then review these documents in a central location. A VDR is a reliable way to share this information in a secure environment, and also reduces the time needed to finish a deal.

In addition to ensuring that sensitive information is only available to intended parties, the seller can also restrict the access of certain documents within the data room. This is done through specific document permissions that determine what each person can and cannot see. A HR professional, for example, may not need to look through the same amount of financial documents as CFOs do.

Making a data room structured to allow potential buyers to view the necessary files is an easy process. With a template, or the automatic index numbering feature that many online data rooms provide administrators can arrange the contents of their virtual data room within a matter of a few minutes.