The Role of Due Diligence Data Room in M&A Process
Accelerate and Streamline Due Diligence
Mergers and acquisitions (M&A) are often highly complex transactions. While the chief executives of the two companies might agree to the transaction, dozens of bankers, lawyers, accountants, advisors, consultants and other professionals are tasked with reviewing the target company’s documentation to ensure smooth sailing through the process.
Due diligence is the process of reviewing any and all documents to support the decision to engage in the M&A transaction. In addition to accounting and financial statements, dozens and sometimes hundreds of other documents detailing the operational state of the target company need to be presented for review.
Without the proper technology in place, M&A due diligence can slow the transaction or even prevent it from moving ahead. The right tools are necessary to not only support but also enhance the work of the professionals engaged in these highly advanced financial and legal review processes.
Contact Sales Today
What is A Due Diligence Data Room?
A due diligence data room is a secure online document management platform that hosts all of the documents necessary for a merger or acquisition transaction to move forward.
The acquiring company will need an easy and intuitive way to review all the relevant documents that give a complete picture of the financial and operational state of the target company. The presentation of the documents by the target company and the review of those documents by the acquiring company serve to support the decision to proceed with the transaction.
A data room is a location where stakeholders can access multiple documents related to a transaction. A virtual data room is an online repository of documents that includes security, access management and additional capabilities and resources to support the transaction.
How to Choose a Due Diligence Data Room: Must-Have Features
- Speed of Document Review
- Fewer Administrative Personnel Needed
- More Specific Permissioning
- Built-in IT
- Efficiency of Notes, Annotations and Communications
- Cost-Effectiveness
- Security
- Accessibility
How to Choose a Due Diligence Data Room: Must-Have Features
- Document Control and Management
- Easy Q&A
- Customizable Permissions for User Groups
- Security
- Activity Tracking and Analysis
- Customizable Access Levels
- Simplicity
- Communication and Annotation
- Read-Only Access
- Tracking Measures
Why is a Due Diligence Virtual Data Room Better Than a Physical Data Room?
Many people believe that document sharing is a rather common application today without the need for any features beyond what are already available from providers such as Google Docs, Microsoft OneDrive or Dropbox.
However, this could not be further from the truth. A virtual data room has features that consumer and even enterprise document-sharing platforms lack. These features are necessary to maintaining the security, privacy and integrity of the documents under review.
Indeed, a virtual data room is better than a physical data room for several reasons.
Over 250,000 professionals from 75+ countries and nearly half of the Fortune 1000 companies use CapLinked.
Sign up today and get:
- Unlimited access to CapLinked for 14 days
- Dedicated workspace for your team to share and collaborate
- Advanced admin controls for additional document security
Discover how CapLinked can help your M&A due diligence today!
Virtual Data Room Pricing Made Simple
Start your free-trial today. No credit card or long-term commitment required.
Team Plan Save $150
Our starter virtual data room plan grants teams access to the secure document sharing and advanced security features they need.
- 5GB of Protected Data
- 1 Workspace
- 10 Administrators
- Unlimited Guest Users
- Custom Watermarking
- Digital Rights Management
- No long-term contracts
$149
($299/month after the 1st month)Enterprise
Our enterprise plan is ideal for companies that conduct due diligence and close deals as part of their core business functions. Enterprise clients receive exclusive access to Concierge Services.
- Unlimited Protected Data
- Priority Email & Phone Support
- API access integration
- SAML-based Single Sign-On (SSO)
- Access Whitelisting by IP
- Real Time Virus Scanning
- Personalized on-boarding
- Full service setup
- 99.9 Uptime SLA
Contact us at (888) 799-6849 for your fully customized virtual data room solution
Learn How Due Diligence Data Rooms Work
Frequently Asked Questions
