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Corporate Finance & M&A

Data Room

Also called: virtual data room, VDR, diligence room

A data room is the controlled repository where a seller discloses contracts, accounts, litigation and staff data to bidders under an NDA. What goes in and when is a negotiation in itself: sellers stage disclosure to protect commercially sensitive information from competitors posing as buyers. Anything disclosed in it is generally treated as known, which limits the buyer's later claims under warranties.

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