Online data rooms are repositories of documents that can be accessed via the Internet. Secure access is made possible by user identification and password. It allows for cost savings compared to traditional physical data rooms, and also offers many other advantages including easy search capabilities, collaboration capabilities and security for sensitive data.
The seller’s company must upload relevant documents to an online dataroom, so that they can be seen and accessed by the buyer side. Due diligence is a crucial element of the M&A process, and failure to upload all the necessary documents can cause delays or even stop a deal.
M&A VDR providers have a diverse array of features, from simple drag-anddrop file uploading to optical character recognition that automatically indexes files and creates a logical data room structure with index numbers. Some of them offer granular document permissions which allow users the ability to specify access restrictions for specific folders and files. Multi-factor authentication is another option that allows users to verify their identity in one or two steps for example, by entering an SMS code.
A reliable online data room provider will have support staff who are available 24/7 to answer any questions. Some offer a chat or phone line, while some have multiple support channels including email and live video conferences. They also provide detailed help guides as well as a Q&A section that lets users ask experts any questions.