The due diligence process is one of the most crucial stages of any M&A deal. It usually involves the examination of large quantities of documents that need to be securely shared between bidders. Virtual data rooms are an excellent way to speed up the process of review of documents and to reduce the cost of travel and the handling of paper documents.

The most reliable due diligence data rooms offer a wide range of tools and features that allow for an efficient collaboration with bidders. The software is designed to be easy to use for all participants, even if they have different levels of computer expertise. It allows for easy drag-and-drop file uploads, automatic index numbering as well as a customizable structure for documents with in-document search, and more. This makes it quick to start the project and accelerates the decision-making process.

A reliable dataroom for due diligence should also facilitate a smooth flow of communication between team members. This means it must have chat room, Q&A functionality, and built-in Zoom integration to facilitate video conference calls. The tool should be intuitive and compatible with any device without the requirement to install additional plugins.

Some data rooms are also designed to be focused on particular types of deals. FirmRoom for instance, offers a dedicated M&A toolkit with all the tools required to speed up the review of confidential M&A documents. Other companies have more generalized approaches and assist participants from all industries.