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Home Resources M&A Glossary Data Room / Deal Room / Document Room

M&A Glossary

Data Room / Deal Room / Document Room

A central location for due diligence materials provided by a company to potential buyers for the purpose of inspecting confidential data and materials in connection with the acquisition of a business.

See Also

Due diligence.

Tips

Most data rooms are now electronic storage locations, also referred to as “virtual data rooms.”

Related Resources

M&A Due Diligence Preparation

M&A Due Diligence | Checklist & Overview

Related M&A Terms

Deal Structure

The legal method of structuring a transaction -- either as an asset sale, stock sale, or merger. Related Resources Selling Your Business | Asset vs. Stock Sale How Does Entity...

Depreciation

An annual tax deduction that allows for the loss of value of a capital asset, such as a business vehicle or real estate improvement, due to wear over a period...

Discount for Lack of Control

A discount taken when valuing an interest in a privately held business to account for lack of control, typically due to a minority interest. Example If a company is valued...

Discount for Lack of Marketability

An amount or percentage deducted to account for the inability to easily sell the shares of a privately held business and the difficulty in converting those shares to cash. See...

Discount Rate

The interest rate used in a discounted cash flow (DCF) analysis to determine the present value of a series of future cash flows. See Also Discounted cash flow (DCF). Tips...

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