Merger and acquisition projects are among the most time-consuming in the business realm. They are, as a rule, connected with preserving and exchange of various undisclosed corporate documents that are expected to be investigated in details before the transaction is started: investor, buyer, client or any other representative of the groups of interest is expected to be informed of what to expect from the firm he plans to cooperate with. Thus, the company must provide its stakeholders with all the needed information and with the place where they have a chance to analyze the information. Under the circumstances of pervasive digitalization, the most adequate and logical solution for data storage and investigation is a virtual data room — digital depository for information which is accessible 24/7 all over the planet.
Virtual data rooms are especially helpful when the files have to be prepared for due diligence. As due diligence is treated as rather cumbersome and exhausting process, those involved in the project are commonly looking forward to passing this part of the merger and acquisition as soon as possible. As for http://www.virtual-data-room.org/ mechanism or the way to carry through a quick business report with the most effective completion But, careless attitude towards corporate documents’ analysis can lead to surprising and unpleasant results. For this reason, a farseeing buyer is always interested in well-organized due diligence course. Virtual platforms are enhanced with numerous features that are aimed at facilitation of due diligence in particular and the deal-making in general. Particular core instruments virtual repositories provide their users with to facilitate due diligence are mentioned below.
Avant-garde protection system
Throughout M&A transactions, a wide range of private files will be exchanged with the potential investors. That is why, all involved in the M&A are interested in storing the data in the most fenced place that may be set up. Respectable vendors provide their customers with virtual platforms that are provided with a military-level protection system: the files are saved from misuse, leakage, destruction, etc. The complexity of safety is usually provided by such options as virus scanning, dynamic watermarks, 2-step verification process, regular backups, 256-bit data encryption, firewalls, «fence view» option, etc. — all these instruments are are expected to guarantee security to the confidential corporate information.
During in-depth analysis of the data not all the room visitors are expected to browse the same documents and files: a repository must let the virtual platform owner to segregate VDR users into permission groups. Such categories offer a chance to decide on the level of data disclosure and to control the access to the data. Therefore, the virtual data room administrator is the only one to control who can view what and how long for within a data room.
Sophisticated data rooms offer their owners an activity tracking option — the tool that gives an opportunity to supervise all the actions of all the logged-in room visitors in the virtual data room. Structured audit reports provide the room owners with the data on who entered the data room, when, how much time for, which files were viewed, saved, altered, etc. Due to activity tracking the VDR administrators have a chance to find the most active participants of the project and to be sure that in a case of any potential quarrels with the employees or prospective partners the report might be used as evidence.
Due diligence is a quite painful and tiresome process. Therefore, the simplicity of utilization is one of the crucially important traits that are expected to be offered by a VDR provider: VDR visitors prefer to exploit intuitive and comfortable platforms that might be worked with without any additional efforts. Multi-sided search system together with filtering options such a search by file names, uploading date, keywords etc. increase the speed of the navigation inside the platform. The unification with Microsoft office means that the VDR visitors can work with PowerPoint, Word, and Excel documents and do not need to adapt them. All the listed tools allow VDR visitors to focus their attention on due diligence. Also, development of the mobile application accelerates the data analysis considerably as all the files are synchronized on all the gadget and the deal participants have a chance to work wherever and whenever it seems to be convenient for them.