The most critical business transactions require an enormous amount of data to be reviewed and communicated in a timely manner. When this sensitive information falls into the incorrect hands, it could make a deal unprofitable and cost a company revenue or market share. This is why it's vital to ensure only the right people are looking over the correct information at all times. This is where a virtual room can be useful. A virtual dataroom (VDR) simplifies due diligence and M&A while safeguarding confidential documents.

A VDR is a secure online repository that safely stores business-critical documents and allows controlled access for internal or external stakeholders. It can also reduce the risk of unauthorized file-sharing by enabling security-first features such as multifactor authentication, session-timeouts and document level permissions, watermarking and view only modes. A VDR is a great solution for M&A due-diligence as well as other high-risk transactions.

VDR providers differ in terms price and ease-of-use. They also differ in terms of features. The best options for companies are those that provide a centralized repository with flexible data permissions, granular activity reports, and customizable metadata. They should also offer security and support services which will help ensure the integrity of the system in the event of an accident.

The most popular providers are Datasite, RR Donnelley, and Intralinks. Each has a robust feature set and tools for M&A but their pricing differs widely. In the lower price range there are a few providers like Digify that offer meager functionality with a complicated price structure.