Online data rooms are storage facilities of documents that are accessible via the Internet. Secure access is made possible by user identification and password. It can provide cost savings over traditional data rooms, and offers a variety of benefits like easy search functionality and collaboration capability.

When conducting M&A in the course of M&A, the selling company must upload all relevant documents to an online data room in order that it can be viewed by the buyer’s side. This is vital since due diligence is a crucial step in the M&A process, and failing to have all the necessary documents can slow or even end an acquisition.

M&A VDRs have a wide range of features. From simple drag-and drop file uploading, to optical character recognition that indexes and creates a logical structure of the data room using index numbers. Some VDR providers of M&A offer specific permissions for documents, allowing users to specify the restrictions on access to each folder and file. Other options include multi-factor authentication that allows users to verify their identity in only a few steps, like entering a single-use SMS code.

A reputable online data room provider will have a team of support all hours of the day to answer your questions. Some providers provide a telephone or chat line, whereas others have multiple support channels such as live video and email. They also provide comprehensive help guides, as well as an area for Q&A where users are able to ask experts any questions.