INTRODUCTION

During current difficult times of economic upheaval and lockdowns even the best of companies is stressed and facing possible extinction and therefore spinoffs, split-ups, liquidations, mergers and acquisitions are all rampant. And private equities are taking advantage of the situation as they have the wherewithal for investing in these stressed companies and take more risks.

Technology, especially Virtual Data Rooms, plays a key role in many of the major private equity deals taking place. A virtual data room is an online document storage provider that provides companies the tool they need that allows them to easily and securely share critical business data and documents with potential investors and partners without compromising valuable intellectual property and proprietary data.

How virtual data rooms benefit private equity fund raising deals

Ensures Exchange of Information Safely and Securely

VDRs allow you to have full control over your documents, and set appropriate access levels to third parties who also may need to view some of that information.

Facilitates Better Organizing and Referring of Documents

VDRs facilitate easy and proper organizing of documents. Referring to a particular document is also easy and convenient.

Speeds-up Deal Making

All parties who are concerned highly value the opportunity for working with their business processes as quickly as possible. The major means to achieve this is through bulk uploads, good speed, simultaneously working system processes. Better data management also leads to better familiarization of the data room, and as a result, faster operation. Another significant factor adding to transaction speed is the opportunity of eliminating live meeting through staying in touch with assistance of Q&A which is even more secure as just as convenient.

Facilitates Better Decision Making

With a VDR, you can maintain, organize, alter, delete and add to information on many different business deals all in one central location. This provides ease of access to all authorized individuals, and provides a great organizational infrastructure to facilitate a thorough evaluation of the potential deal. This leads to better, more informed decision making.

Allows Better Co-ordination and Access Control

Virtual data rooms have a variety of security features that ensure parties only have access to the information that they are authorized to access, while numerous security features prohibit unauthorized parties from doing so. Granular user permissions, watermarking, customizable NDAs, and an exportable activity log, make it easy to manage sensitive information confidently. Therefore, there is better co-ordination between the right people.

Helps Gain Valuable Insight into Your Data Room Activity

Understanding what’s happening in your virtual data room provides you with valuable insights to gauge the interest from buyers, investors, or other external parties. VDRs let you filter activity by user, role, or group, document uploads/downloads, and document views.

Ensures Smooth Deal Closings

During private equity fund raising numerous deals and investments companies are tasked with researching, perform due diligence, overseeing, and in many cases closing. Virtual data rooms facilitate both overseeing the transaction and increasing the chances the deal closes. The easy transfer of large amounts of information between the different parties to the deal will allow your important deal to be closed quickly and easily.

VDRs save time and money, which over the long run, helps you achieve maximum profit potential.