The due diligence process is among the most important phases of any M&A deal. It often requires the review of large quantities of documents that must be safely shared between bidders. The use of virtual data rooms is a great option to cut down the amount of time required to review each document and significantly cut down the cost of handling paper documents and costs for travel of experts.

The best data room providers provide numerous tools and features that ensure a smooth collaboration between bidders. Their software is designed to be simple to use for everyone, regardless of whether they have different levels of computer knowledge. It allows for easy drag and drop uploads with automatic index numbering as well as a customizable structure for documents, in-document search and much more. This lets the project get launched quickly and the decision-making process to be accelerated.

A reliable due diligence data storage room should also facilitate a seamless communication between team members. This means it must have a chat room, Q&A functionality, and built-in Zoom integration for more efficient video conference calls. Ideally, the tool should work on any device without installing additional plugins and be intuitive even for newbies.

Some data rooms are also specifically designed to target specific kinds of deals. For example, FirmRoom offers a dedicated M&A solution with all the necessary tools to speed up the review of confidential M&A documents. Others have an approach that is more general and help participants in all fields.