A virtual data room for M&A is a secure online repository of business information that allows for simple file sharing and collaboration between the parties involved in a merger or acquisition. VDR providers such as Clinked provide a range of security features to ensure that sensitive information is not accidentally shared outside of the intended audience. These security features include the ability to watermark, logs of activity, and user permissions.
Due diligence in M&A is the most popular application of the VDR. This phase of the deal requires a seller to provide prospective buyers with various documents, such as financial statements, legal records and operational data. The buyer is able to review all of these documents in a central location. A VDR offers a way to share this information in a highly secure environment, and also reduces the time needed to close an agreement.
The seller is able to control the visibility of certain documents in the data room, as well as making sure that M&A advantages sensitive information only gets to the intended recipients. This is done using documents with specific permissions for each document to determine what each individual can and cannot see. A HR professional for instance, might not require access to the same amount of financial documents as CFOs do.
It is easy to structure an online data room to ensure that potential buyers are able to view the files they need. Administrators can manage their data rooms quickly and easily by using templates or automatic index numbering offered by the majority of data rooms online.