Relevance and importance of M&A Data Room in modern business

Laptop computer

An ‘online data room’ is an online repository for key company documents with robust security.

A virtual data room is an online secure data repository used for storing and distributing data. Virtual data rooms are used when strict data confidentiality is required. Online data rooms enable faster use of company data in connection with mergers and acquisitions, such as 24/7 availability of data from any device, from any location, security, and cost-effectiveness of data management. It also speeds up the due diligence process. Such a system reduces overhead company costs and energy, reduces paperwork, and systematizes the execution of work.

Common M&A transactions include, but are not limited to

  • Mergers
  • Acquisitions
  • Share acquisitions
  • Management takeovers
  • Consolidation.

The need for a virtual data room

An electronic data room is essential to securely manage M&A due diligence, bid submissions, and contract negotiations. Virtual data room prices vary depending on the supplier. This is similar to mobile phone or internet pricing plans. First, you pay a basic fee, and then you can pay additional costs depending on the different features you need. Some providers also offer unlimited plans at a predictable price. You can see available offers at:

Best virtual data room providers

Let’s compare virtual data rooms and look at the five most popular:

  1. iDeals. It is a sophisticated and reliable virtual data room provider. Their expertise and excellent results have been tried and tested by investment bankers, lawyers, and business executives worldwide.
  2. Intralinks. Best suited for medium and large enterprises. It provides an intuitive user interface for ease of use. It has features such as watermarks and automatic indexing.
  3. Merrill Data site. Merrill Data is an electronic data room that can be used as an online data room solution for investment banking, corporate development, private equity, and law firms. It provides a visual analysis of document activity. It allows you to customize settings and manage these document activities.
  4. Watchdox: Watchdox is a Blackberry solution for workspaces. It is a secure enterprise-grade platform for file synchronization and sharing. It provides protection against ransomware with Watchdog.
  5. Box. It offers four plans for businesses, i.e., Starter, Business, Business Plus, and Enterprise (Get Deal). The Box also offers a free trial for the Starter, Business, and Business Plus plans. 

Data room review has shown that the advantage of data room software is the security of confidential information. In addition, it allows downloading large volumes of documents and provides functionality to track document activity and set user permissions. This has its own advantages, specific functions and applications in business sectors.



As all large companies move online, security features must become a priority. Sensitive information is often stored in virtual data rooms. Information leakage can be a fatal mistake for a company. 

Data room software has four file access permission options. You can set permissions for viewing files, downloading originals, and editing so that external users cannot edit documents. You can set the system so that no one can download or edit files but only view or allow access to multiple users.

Artificial intelligence

Sales and purchases require lots of written documents, etc. Artificial intelligence can help save time, staff energy, and costs by working on large volumes through fast, iterative processing and intelligent algorithms that automatically allow the software to learn from patterns or features in the data.


You are in control. You can track how much time an employee spent working on documentation, what the customer searched for in your files, and you can see the status of a project.


It provides the possibility of creating a work team from different parts of the world. Team members will be able to chat regardless of their location.

Top 5 M&A sectors using online data room software

  • Business. The business segment includes sales transactions between companies in different industries. 
  • Technology. Modern online deal rooms can increase the efficiency of intellectual property management; they speed up transaction processes.
  • Finance. Transparency and accuracy; financial institutions need to produce a well-designed catalog of transactions and provide quick answers to questions.
  • Procurement. Short transactions and immediate answers are a success; by using transaction rooms, parties can speed up the process and track access to company documents.
  • Marketing. Marketing and sales transactions are based on close communication, service information can be communicated securely and efficiently, and different levels of expertise are involved in the process. They can organize and present all the information collected in the M&A data room.

Final notice

Mergers and acquisitions are common in modern business and they form a gradual process involving many professionals, including external parties. Such transactions require strict protection and confidentiality, but everything must be transparent, fair, and fast; companies must use the virtual M&A data room services to successfully organise, speed up and protect all exchanges of confidential information.