Buy side Due-diligence with VDR

What is Buy side of the deal?

A ‘buy-side’ company is one which is actively considering acquiring or merging with another company. The buy-side is the company which is looking to pay some consideration in the deal to make it happen.

As Buy-Side companies are actively engaging in M&A, virtual deal rooms are used for making the M&A process more secure & structured. Virtual deal rooms play a very important role in M&A as it provides secure data storage & secure file sharing platform for the company. A structured approach
to M&A is also very important as it betters the chances of conducting accurate valuation, finding suitable target & conducting an successful due diligence process. A virtual deal room makes sure that all of these processes lead up to value-adding transactions.

All the Buy-Side representatives should know who are the best virtual data room providers & the advantages that they provide, so as to be prepared for the sort of options during a Buy-Side due diligence.

Easy, safe & secure access to the company’s data is the first & one of the most important advantages offered by a virtual data room provider. Individuals or companies no longer have to store data physically or don’t have to visit a storage space physically to looks into another firm’s data & past records. Any authorised individual can get access to any data at anytime from anywhere in the world. Best virtual data room services provide easy search option, categorised documents and files, features such as Question & answer as it allows queries to be addressed & answered quickly, easy organized search, looking up on data points & other important documents with the help of keywords & organised spread sheets. Access available on different electronic devices such as laptop, mobile phones, tablets & desktops to authorised individuals is also another vital aspect of a virtual data room. Features such as real time updates help both buyers and sellers to know about all the changes & updates that are happening.

1. Create a folder which outlines the goals of the strategy.
   ‍This is a first and most important step that many companies overlook when setting up a buy-side due diligence VDR. It enables and encourages everybody involved on the buy-side team to refer back to why a transaction is being sought in the first place, and whether they’re remaining on track with those goals.
2. Create a folder with a short-list and long-list of potential companies. Here, any information gleaned from initial discussions with potential targets can be added. This doesn’t need to be large – a single excel sheet may suffice, depending on how many companies have been contacted, and how much contact has been maintained.
3. Create a different room for each target, and within each, a series of subfolders like Emails, Valuation, Due diligence, Transaction documents, Change management, etc.
4. Create in-depth subfolders structure, meaning in the subfolders above, due diligence should hold several of its own subfolders such as: Legal due diligence, Operational due diligence, Financial due diligence, HR due diligence etc.
5. When this structure is in place, you can send it to the team involved in the acquisition process, for their feedback. It is highly likely that they’ve got some ideas about different folders that can be added or removed. Once this is done then you are ready and fully prepared to invite third parties and people from the other side of the deal.

Moreover a sophisticated, secure virtual data room services like DocullyVDR is purpose-built for participants on the buy-side of a transaction, designed to match actual workflow needs and provide transparency in to the deal team’s due diligence activity real-time. It also leverages artificial intelligence to let you quickly:

• Organize seller’s documents according to your checklist
• Assemble your team and assign tasks accurately
• Manage your team’s progress real-time

Thus a best virtual data room services provider like DocullyVDR streamlines a repeatable buy-side review process, saves time and enables taking better decisions faster.