Last updated on June 26th, 2023 at 11:30 am

INTRODUCTION

A Virtual Data Room is like an online warehouse where companies store their sensitive, corporate data. They are more particularly used during the due diligence process that is the initial step in the M&A. That is because it’s during M&A that a VDR is populated with all the selling company’s sensitive documents like contracts, intellectual property details, employee’s information, financial statements etc. M&A is a complex process, but a VDR enables you to optimize the deal process and achieve the desired effect faster by enhancing efficiency.

Simple to Navigate

The simple to navigate interface simplifies due diligence with easier, better organized and pre-planned document management. It helps you add users, upload and share data, change access permissions quickly, so you can work confidently with colleagues, vendors, partners, buyers and sellers.

Reliability and Confidentiality

VDR offers maximum level of information security by letting you share your critical business information to the prospective buyer in a confidential and completely controlled manner across networks, geographies and platforms. They do it with advanced digital protocols and tools like up-to-date encrypting systems, two factor authentication and similar safety measures.

Customized Access Control

Since in a M&A many parties and persons are involved, you can make sure that each party sees just what they are supposed to see and nothing more. You can create custom groups and configure view, download and upload access to entire folders and sub-folders with specific time frames.

Prevents Unauthorized Copying or Downloading

Dynamic watermarks and screen blocking systems prevent data from being copied or downloaded.

Control and Tracking

VDR facilitates complete control of your critical business data by access control measures, allows real time tracking and audit of the activity reports of the activity. It provides you with a virtual footprint so that you are always aware who looked at what document and when.

Quickens Data Evaluation

VDR quickens and simplifies data evaluation process. This enables you to close deals faster, improve speed to market.

Better Team Co-ordination

VDR facilitates better co-ordination between various teams of the M&A process.

Compliance with M&A Regulations

VDR ensures full compliance with international and local M&A regulations, this allows buyers and sellers alike to maximise the value of transactions.

Easier Communication

VDR facilitates an easier and secured communication between the buyer and seller. Also gives possible access to more bidders in a short span of time.

Enhances Deal Efficiency

VDR also enhances your deal efficiency.

Saves Time and Expenses

All the information about the M&A is stored in the cloud so bidders and sellers don’t have to travel to share and review sensitive business documents, this saves travel time as well as costs.  

VDRs because of their sophisticated security measures, ease of accessibility and cost efficiency are fast becoming more popular for due diligence during M&A.