M&A deals because of an avalanche of paper, repeat requests, and wait-time can overwhelm buyers and sellers. These slow, often unmanageable tasks, leave too much room for error, steal valuable company time, and can kill deals. However, virtual data rooms designed with M&A in mind can allow stakeholders to work more collaboratively, effectively, and efficiently throughout the lifecycle of a deal. They also help close the deals faster.
Specifically, VDRs are useful in the Divestment process because they:
Securely store documents in one location
VDRs allow for documents such as financial statements and employee information to be kept in a safe, two-step required authentication space. The documents are not only encrypted but also carefully controlled by the room’s organizer. For instance, documents may be shared, restricted, or shared as “view only.” Moreover the best VDRs for divestment process boast ISO 27081 compliance so you know your documents are completely protected from third-party thieves.
Allow easy collaboration between stakeholders in different locations
VDRs allow for easy collaboration between stakeholders across time horizons at their convenience. This is invaluable as thanks to technology there is a two-way flow of information between parties, which results in improved communication and increased transparency. This also means there is a centralized hub of information rather than information and requests being in multiple emails, Excel spreadsheets, and Google Docs. All document requests and communication regarding the due diligence process can go through one platform. Everything is updated in real-time, so users don’t have to worry about version control.
Eliminates redundant work
The more sophisticated VDRs designed for M&A and divestments often allow users to eliminate work through features such as automatic elimination of duplicate requests, bulk dragging and dropping of documents, full-text searches, and auto-indexing, as well as the ability to assign tasks, live link documents, and produce reports with the click of a button.
Allow easy analysis and organization of files
Artificial Intelligence is used in VDRs helps analyze and organize files. This not only improves workflow and organization, but also offers the ability to adapt to new information and changes throughout diligence.AI also allows companies to accumulate valuable data that can offer business benefits in the future.
Provides an overview of the entire process
Some state-of-the-art VDRs allow for a bird’s eye view of the entire process. This enables efficient project management as this overview is very useful in terms of seeing where team members are spending the most amount of time, analyzing the buyer’s engagement, identifying and responding to potential problems or roadblocks, and tracking overall progress.
Your corporate documents are safe with DocullyVDR Recognized globally as an industry leader in simple, smart, secure deal room solutions, you can count on our track record of success – and our unwavering commitment to safeguarding your most sensitive business documents. You can also reach a wider range of investors and share information with all investors at once, thereby reducing the time needed to close a deal. DocullyVDRs advanced reports also help you understand investors intentions better and focus on the negotiations while we organize the process.
The DocullyVDR team is a provider of a new generation secure data sharing platform designed for businesses. The team has extensive experience in working with document sharing platforms and has been assisting the Virtual Data Room community since 2019 by providing users with free information.