Performing due diligence in a merger or acquisition has become logistically easier in recent years through the use of virtual data and deal rooms (VDRs). The technology makes a target company’s centralized document repository available 24/7 to potential bidders via the Internet. VDRs can provide secure online access to business plans, projections, agreements, presentations, research, inventories and other sensitive information potential buyers need in shaping their offer.
Some experts say VDRs offer several advantages over the traditional method of inviting bidders to examine documents in a physical data room (PDR), including lower cost, faster completion of the deal and ability to better shield bidders from learning who they are bidding against.
