Data Room
Definition
A data room is the secure repository, today almost always virtual, where a seller assembles the documents buyers need for due diligence: financial statements, contracts, employee agreements, litigation records, and more. Access is logged and staged as a process advances.
In practice
The state of a data room signals the state of a company. Bankers stage sensitive documents so that only serious, late-round bidders see the crown jewels, and watch access logs to read which bidders are working hardest.