Online data rooms are places to store a variety of documents that are accessible through the Internet. Secure access is provided by a user identification and password. It offers savings over traditional physical data rooms as well as a myriad of benefits such as easy search functionality and collaboration capability.

The selling company has to upload relevant documents to an online dataroom, so that they can be seen and accessed by the buyer side. This is important because due diligence is a critical element of the M&A process and failure to have all the necessary documents can slow or even stop an acquisition.

M&A VDR providers have a broad range of features, from simple drag-and-drop file uploading to optical character recognition that automatically indexes files and creates the logical structure of a data room with index numbers. Some M&A VDR providers offer specific permissions for documents that allow users to set access restrictions for each folder and file. Multi-factor authentication is another option, which allows anchor users to verify their identities in the simplest of steps like entering an SMS code.

A reputable company that offers an online data room will have a support staff on hand to answer questions around the clock. Some provide a chat or phone line, and others have support channels such as email and live video conferences. They also offer comprehensive help guides, as well as a Q&A area where users are able to ask experts any questions.