Virtual Data Rooms for M&A: Key Features, Pricing & How to Choose One

The success of the M&A deal highly depends on the secure sharing of sensitive documents. Email and file-sharing apps are not built for this. They lack control and create risk. That’s why it is better to use virtual data rooms (VDRs) for due diligence.

A due diligence virtual data room is a secure online platform designed for high-stakes transactions. It gives you complete control over your most critical information. A virtual data room M&A software helps deal parties move faster and smarter as it provides:

• Security. Protect data with advanced controls.
• Transparency. See every action taken.
• Collaboration Streamline communication.
• Speed. Accelerate your deal timeline.

Read on to learn more about data room due diligence software, its key features, pricing, and top M&A data room providers to consider.

Features of M&A deals in the UK

• The number of mergers and acquisitions in the UK is growing as executives seek alternative methods of growth and consolidation. According to a PwC UK survey published in June 2025, 58% of executives plan to pursue M&A deals in the next 12 months. This reflects a sharp rise from earlier years when the forecast was closer to 50%.
• Cross-border M&A is also on the rise. 67% of respondents are interested in international deals. This rise is driven by market diversification and the search for global growth opportunities.
• In terms of deal values, the total value of domestic acquisitions of UK businesses increased to £8.6 billion in Q4 2024, up from £1.9 billion in the previous quarter. It marks a year-over-year increase of over 350%.
• Corporations continue to dominate M&A activity in the UK, leveraging their substantial financial resources. Of the 82 transactions recorded in Q2 2025, 51% involved private equity investment, either directly or via an existing portfolio company. This represents a return to the levels of 2024-2023, which is significantly lower than the 65% reported last quarter.

Best M&A data room providers

What is an M&A data room?

A virtual data room for M&A is a protected online space for mergers and acquisitions where users can store and share confidential documents safely. In addition, the best data rooms for M&A feature advanced tools for data management, collaboration, and legal compliance throughout the transaction process.

Mergers and acquisitions involve a copious amount of documents and combining a lot of data from both companies. Due diligence in M&A deals used to be carried out in physical data rooms, but due to convenience and security, virtual data rooms are now much more common.

How VDRs can help the M&A at each stage

The traditional M&A due diligence process is often a chaotic mix of insecure file shares via email. A data room in M&A replaces that chaos with a single source of truth that is designed to guide deal parties from initial preparation to final signature. Here’s how a due diligence data room creates value at each stage.

1. During preparation & launch

The data room for mergers and acquisitions is a secure place for data storage and management during the due diligence process. Financials, HR data, IP, and other documents are structured in separate folders. A well-organized data room makes a great first impression on potential buyers or investors.

2. In the due diligence phase

At this point, the VDR becomes a secure collaboration hub. Instead of fielding endless email requests or sending the paper documents, as in the case with traditional data rooms, you grant controlled access to documents based on the role in the transaction. For example, lawyers get access to legal documents, and advisors to financial reports. This helps avoid oversharing and data leakage. 

Data room admins can see exactly which files are being reviewed, for how long, and what questions are being asked. This transparency speeds up the process and uncovers insights into a buyer’s level of interest and concerns.

3. As negotiations intensify

During negotiations, the VDR helps to make sure that every conversation is informed by the latest data. Version control eliminates confusion over which document is current.

Secure Q&A modules keep all discussion tied directly to the relevant files. This prevents miscommunication and builds trust between parties.

4. When seeking approval

At this stage, the data room’s audit trails give a clear, auditable record of every action taken. This is great for keeping board members, stakeholders, and regulators in the loop. It also proves compliance and ensures nothing falls through the cracks before the final sign-off.

5. At closing

When the deal is done, the data room gives a smooth and orderly wrap-up. All executed documents, signatures, and final versions are stored permanently and securely in one place, ready for integration and post-merger planning.

Features that matter most in M&A virtual data rooms

Below are the most important data room tools, categorized to highlight their specific contributions to the M&A process:

Security

Audit trails provide comprehensive logs of all user activity within a data room.

Advanced encryption protects sensitive data with robust encryption protocols, keeping data secure in transit and at rest.

Granular access control enables precise user permissions management, allowing admins to decide who can view, download, or edit specific documents.

Dynamic watermarking adds user details and timestamps to documents to discourage unauthorized distribution and track document usage.

Document management

• Bulk upload and drag-and-drop functionality simplifies and accelerates uploading large volumes of documents.
• Automatic document indexing facilitates structuring files and folders, making data navigation and search easy.
• Full-text search allows users to find specific documents easily by searching keywords.

Collaboration and communication

• The Q&A module simplifies communication between all parties, allowing stakeholders to ask and answer questions directly within the data room, with all exchanges securely documented.
• Customizable notifications keep all participants informed, ensuring that everyone is updated throughout the process.
• Multi-language support enables communication in international deals by offering support for multiple languages.

Note that these are only some of the features M&A data room providers offer. Review the top solutions for dealmakers to learn more.

How to choose the right VDR for your M&A deal?

The right platform becomes a trusted partner when navigating the complexities of a deal. To find the best M&A data room that truly aligns with your needs, focus on these key areas:

1. Security and compliance

This is the absolute priority. Look for enterprise-grade security features like:

• Advanced encryption.
• Granular permission settings to control who can see, edit, download, or print each document.
• Detailed audit trails that track every user action.
• Compliance certifications like SOC 2, ISO 27001, and GDPR.

2. Intuitive design 

The best VDRs balance robust features with simplicity. Investigate:

• Ease of use. An intuitive interface minimizes training time and helps get up to speed quickly.
• Time-saving functionalities. These include bulk upload, auto-indexing, drag-and-drop, and a strong full-text search that can even read text inside images.

3. A provider with proven M&A expertise

Not all VDRs are built for the same purposes. Choose a provider that specializes in or has extensive experience with M&A transactions. Make sure:

• Their platform will be tailored to the specific workflows of due diligence.
• Their support team will understand your jargon and pressures for relevant, immediate assistance instead of generic responses.

4. Transparent and scalable pricing

Avoid surprise costs that blow up your budget. Seek for:

• Clear, upfront pricing models.
• Flexibility. Can the plan scale up or down easily to match the size and evolving needs of your deal without penalty?

5. 24/7 Customer support

When a question arises at a critical moment, you need answers fast. Look for a provider that offers:

• Responsive, round-the-clock support from knowledgeable specialists.
• Real client testimonials and case studies. They are a real-world proof of the provider’s reliability and quality of service.

Data room M&A pricing plans 

The right data room pricing model helps to control costs and get the maximum value from the VDR software. Data room providers typically use a few common models, each with its own advantages.

Pricing model	How it works	Best for	Pros	Cons
Per-user	A monthly fee is taken for each individual user granted access to the data room.	Smaller deals with a limited number of participants.	Predictable cost per user.Often simple to understand.	Costs can escalate with more users.Can be expensive for processes with many bidders or advisors.
Per-page	Charge is based on the number of pages uploaded to the data room.	Very simple, document-light transactions.	Can be cheap for small data rooms.	Can become extremely expensive for large deals.Lacks flexibility and predictability.Discourages uploading necessary documents.
Flat-fee / project-based	Includes a single, fixed monthly or quarterly fee for the entire project.	Most M&A transactions. Ideal for due diligence with multiple bidders and complex document sets.	High predictability for budgeting.Allows for unlimited users.Often includes premium support and features.	May have a higher minimum cost.Could include overage fees for massive storage needs.
Custom / enterprise	The provider creates a tailored quote based on your project’s specific scope, size, and required features.	Large, complex, or ongoing transactions. Enterprises running multiple, simultaneous deals.	Tailored precisely to your needs.Can be more cost-effective for very large volumes. Often includes a dedicated account manager and white-glove support.	Requires direct contact and negotiation with sales.Lack of transparent, self-service pricing.

This is a general data room pricing overview. Before committing, it is better to test the data room with a free trial, if available. Also, when discussing the pricing with a sales representative, always clarify what is included to avoid hidden fees. Ask:

• Are there setup or implementation costs?
• Is customer support included, or is it an add-on?
• What are the overage fees if we exceed storage or user limits?
• Is there a minimum commitment period?

Virtual data rooms vs. Cloud storage

Despite the availability of secure virtual data room solutions, many businesses still rely on cloud solutions like Dropbox, Google Drive, or SharePoint. However, cloud platforms are built for collaboration, not for the high-stakes and security-intensive business transactions.

The difference between online data rooms and generic cloud storages is critical. Here’s a breakdown of how they compare:

Feature	Virtual data room	Generic cloud storage
Primary purpose	Secure, controlled transactions (M&A, fundraising, audits).	General file storage and team collaboration.
Security & permissions	Granular, document-level control. Restrict viewing, printing, downloading, and set watermarks on a per-file basis.	Basic, folder-level control. Typically, if a user can access a folder, they can see all files within it.
Audit trail	Detailed, immutable logs tracking every view, search, and download by every user.	Basic activity history. Lacks the detailed, forensically valid audit trail required for due diligence.
Q&A & collaboration	Dedicated, secure Q&A modules that keep discussions organized, confidential, and tied to specific documents.	Comments and chat are not designed for structured, sensitive deal negotiations and can create security risks.
Document management	Automated indexing, bulk drag-and-drop upload, and a powerful search that works inside documents (OCR).	Manual organization is required. Search is often less powerful for large, complex document sets.
Customer support	Dedicated, expert support teams trained in M&A processes and available 24/7 for critical issues.	General tech support for platform issues, not deal-specific guidance.

Overall, a generic cloud platform is not built for M&A deals. In fact, it can even derail the deal. The lack of granular security, detailed auditing, and controlled collaboration features can lead to data leaks, compliance issues, and a loss of leverage during negotiations.

That is why M&A experts use data room due diligence software. An electronic data room keeps documents safe and easy to manage and collaborate on.