Data Room

During an acquisition, investment or financing, buyers need to examine large amounts of confidential information, such as contracts, financial records, employee details, intellectual property documents, legal matters and tax filings. A data room organises these documents and controls who can see them.

Virtual data rooms allow the seller to grant different levels of access to different bidders, track who views which documents and when, prevent downloading or printing, and manage questions and answers between buyers and sellers.

For example, in the sale of a manufacturing company, the data room might contain thousands of documents organised into folders covering corporate structure, finance, contracts, property, employees, environment and litigation.

Data rooms make due diligence more efficient and secure, allowing several bidders to review documents at the same time. The activity tracking also gives sellers insight into which bidders are most engaged. Careful organisation and completeness of the data room can speed up a transaction.