A virtual data room is an online data room that allows documents to be shared and saved safely. In most cases, these rooms are used during the M&A process to help speed up the due diligence process by making it easier for both parties to access key information. A data room online is accessible via the internet, which means stakeholders from around the world can access the data and collaborate efficiently.

When a company is planning to sell its business it must go through many documents to help potential buyers evaluate the value of the business. This can be a costly and time-consuming process. A data room online lets a business to upload important documents, such as contracts or intellectual property information in one place, for prospective buyers to easily access.

Sometimes, a business may need to share sensitive information with outside stakeholders to finish a project or comply with the requirements of regulatory authorities. A life science company conducting a clinical trial may need to work with attorneys from different time zones and locations. A data room online allows all stakeholders to easily access important documents in one location, and also allows the company control document access according to the need-to-know.

An online data room could also be used to conduct a thorough due diligence process before an initial public offering (IPO). This kind of transaction requires many documents and strict conformity with federal and local regulations. Online data rooms permit investment bankers to review important documents in a safe and secure environment which can speed the process of negotiating.