Which Data Room Providers Are Best for M&A?
The most critical business transactions require a large amount of data that must be reviewed and communicated in a timely manner. The sensitive information can end up destroying an agreement or cause a company to lose revenue and market share if it is placed in the wrong hand. This is why it’s important to ensure that only the right people are examining the right information at all times. A virtual data room can be extremely beneficial in this scenario. A virtual data room (VDR) can help streamline due diligence and M&A processes, while protecting confidential files.
A VDR is a secure online repository that securely stores documents that are essential to business and provides controlled access for internal or external stakeholders. It can also reduce the risk of file sharing that is not authorized by implementing security-first features such as multifactor authentication, session-timeouts and document level access, watermarking, and view-only modes. A VDR is an ideal solution for M&A due diligence and other high-risk transactions.
VDR providers vary in terms of features, ease of use, and price. The most effective options for businesses are those that can offer central repository that can be customized with data permissions, detailed activity reports, as well as customizable metadata. They should also offer support and security certificates that can help ensure the integrity of the repository in case in the event of an accident.
Datasite, RR Donnelley and Intralinks are the most popular providers. Each one of them has a comprehensive collection of features as well as specialized M&A tools, but their pricing differs. In the lower cost tier, there are providers such as Digify which provide basic features with a complicated pricing structure.
