Virtual Data Rooms: The More Efficient Way to Conduct M&A Data Reviews

It is getting difficult to remember what the physical data rooms in an M&A deal were like ‘in the old days.’ Does anyone really miss those often windowless, oxygen-deprived rooms stocked to the ceiling with boxes or shelves of binders packed with information that became outdated almost before the room opened for visitors? A virtual data room is a website onto which confidential documents are loaded and to which access is granted only with permission. Today, there are more than a few providers offering virtual data room services with powerful software, but it is important to know what is available and at what cost. At the outset of any transaction, among other considerations, is whether the seller wants to ‘go virtual’ with its disclosure to prospective buyers.