Data Room
A secure repository for sharing confidential documents during M&A due diligence, typically organized by category with controlled access and activity tracking.
A data room is a secure online repository used to share confidential business documents with potential buyers during the due diligence process.
Data Room Contents
Financial
- Historical financial statements (3-5 years)
- Tax returns
- Accounts receivable/payable aging
- Revenue by customer and product
Legal
- Corporate documents
- Contracts (customer, vendor, employee)
- Litigation history
- Intellectual property
Operations
- Employee roster and org chart
- Equipment and asset lists
- Lease agreements
- Insurance policies
Commercial
- Customer list and contracts
- Sales pipeline
- Marketing materials
- Competitive analysis
Data Room Platforms
| Platform | Best For |
|---|---|
| Dropbox/Google Drive | Small deals, simple sharing |
| Firmex, Intralinks | Mid-market M&A |
| Datasite (Merrill) | Large transactions |
| DealRoom | PE and VC deals |
Data Room Best Practices
- Organize logically: Consistent folder structure
- Name files clearly: Descriptive, searchable names
- Control access: Limit who sees what
- Track activity: Know what buyers review
- Update promptly: Respond to requests quickly
Related Terms
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