A virtual data room, also known as a VDR, is a secure online repository for the storage and distribution of business documents. It is often utilized in M&A due diligence to share and examine documents from the company with potential buyers. It also serves as the central platform for collaboration of documents across multiple time zones and locations. VDRs offer many benefits, and can help companies save money and improve efficiency by streamlining the M&A processes.

The data room makes the M&A transaction easier and more efficient as it eliminates the requirement for physical travel to the location to review the documents. For a large business it can be costly and time consuming.

Another advantage of data room software is that it provides the central repository of all M&A documentation which can be accessed at the touch of a button. This can reduce the amount of back-and-forth communication between interested parties, and makes it easier for everyone to comprehend the documents being discussed.

The most reliable data rooms have modern intuitive user interfaces which are easy to use and operate sites on all devices. They also offer granular permission options which can be configured at the report or the folder level. This is particularly beneficial when employees have to work remotely – for instance, when they are on vacation or on a business trip. It can also aid in improving accountability by allowing the manager to track who opened and edited files and when.