M&A projects proved to be the most time-consuming in the deal-making sphere. They are commonly connected with storage and sharing of various sensitive corporate documents that must be examined deeply before the transaction is started: investor, buyer, client or any other representative of the groups of interest is expected to have the exhaustive information on what is the situation inside the enterprise he has a chance to work with. Hence, the organization has an obligation to provide its stakeholders with all the demanded files and with the place where they can get familiar with the data. In the era of overall digitalization, the most reasonable and logical solution for information storing and investigation is a VDR – digital depository for documents which is accessible all the time all over the Earth.
Virtual data rooms are especially helpful when the documents have to be prepared for due diligence. As due diligence is treated as quite complicated and exhausting process, those involved in the project are commonly willing to pass this stage of the project as soon as possible. As for what is a virtual data room performance or how to carry through a fast business review with the most productive completion However, careless attitude towards confidential data analysis can lead to sudden and harmful results. Hence, a farseeing buyer is always concerned about proper due diligence course. Virtual rooms are equipped with numerous options that are aimed at facilitation of due diligence in particular and the business-making in general. Particular key options virtual rooms provide their users with to enhance due diligence are mentioned below.
Advanced security system
Within merger and acquisition deals, multiple sensitive files should be exchanged with the possible buyers. For this reason, all involved in the transaction are interested in keeping the documents in the most preserved venue that can be set up. Fair vendors offer their clients data rooms that are provided with a multi-sided safety system: the data is protected from destruction, misuse, leakage, etc. The military-level safety is as a rule ensured by such options as “fence view” option, 2-step verification process, virus scanning, dynamic watermarks, 256-bit data encryption, firewalls, regular backups, etc. – all the named functions are are expected to guarantee security to the inside corporate files.
In the course of in-depth analysis of the data not all the VDR visitors are allowed to view the same documents and files: a repository have to allow the virtual room administrator to segregate room users into permission categories. Such categories offer a chance to set up the level of information disclosure and to monitor the accessibility of the information. Hence, the virtual repository administrator is the only one to monitor who can browse what and how long for within a room.
Reputable rooms provide their owners with an activity tracking option – the option that helps to follow every step of all the identified room users in the data room. Continual audit reports provide the room owners with the data on who logged into the virtual repository, when, how much time for, which folders were worked with, downloaded, uploaded, etc. Because of activity tracking feature the platform administrators have an opportunity to search out the most concerned VDR visitors and to ensure themselves that in a case of any eventual arguments with the employees or future partners the report might be utilized as evidence.
Due diligence is a pretty painful and tiresome process. That is why, the simplicity of exploitation is one of the most important traits that are expected to be guaranteed by a virtual room vendor: users prefer to exploit intuitive and comfortable virtual repositories that may be navigated without any additional training. High-quality search system together with filtering options such a search by keywords, file names, uploading date etc. enhance the navigation in the room. The integration with Microsoft office means that the VDR visitors have a chance to work with Word, PowerPoint, and Excel files and are not expected to convert them. All the mentioned functions help all those involved in the deal to concentrate on due diligence. Also, launch of the mobile application speeds up the files’ investigation noticeably as all the documents are synchronized on all the gadget so that the VDR visitors have an opportunity to work with the documents whenever and wherever it seems to be comfortable for them.