Merger and acquisition transactions proved to be the most prolonged in time in the business sphere. They are, as a rule, connected with storage and sharing of lots of confidential corporate files that are expected to be investigated deeply before the work is started: client, investor, buyer or any other stakeholder is expected to have the relevant information on what to expect from the firm he wants to start working with. For this reason, the firm is expected to provide its stakeholders with all the necessary files and with the space where they have a possibility to get acquainted with the files. Under the circumstances of pervasive digitalization, the most adequate and simple solution for information storing and examination is a VDR – digital storage for files which is open for an access all the time in any place on the planet.
Virtual repositories are especially handy when the documents have to be prepared for due diligence. As due diligence seems to be quite intricate and challenging process, both sides of the deal are commonly willing to pass this stage of the project as soon as possible. As for vdr virtual data room evolution and formula to make a like-a-flash business appraisal with the most masterly outcome. But, distracted attitude towards crucial information investigation might have sudden and fatal consequences. Hence, a potential buyer is always interested in proper due diligence course. Virtual platforms are equipped with many instruments that are supposed to facilitate due diligence in particular and the deal-making in general. Selected core instruments virtual data rooms provide their users with to facilitate due diligence are listed below.
Complex protection system
Throughout merger and acquisition projects, many undercover information will be shared with the possible partners. That is why, all involved in the M&A deal are willing to keep the files in the most guarded environment that can be set up. Reputable providers offer their customers virtual data rooms that are provided with a multi-dimensional safety system: the files are saved from leakage, destruction, misuse, etc. The overall protection is mostly 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 mentioned tools are aimed at guaranteeing safety to the undercover corporate data.
During due diligence not all the room users should browse the same documents and files: a virtual room is expected to permit the room administrator to sort VDR visitors into permission categories. Such clusters give a right to decide on the level of information disclosure and to have control over the access to the files. Hence, the room administrator is the one to control who can view what and how long for in a platform.
Advanced platforms provide their owners with an activity tracking function – the instrument that gives a possibility to follow all the activity of all the authorized room users in the virtual room. Repeated audit reports contain the evidence on who logged into the virtual repository, when, how long for, which folders were browsed, saved, altered, etc. Owing to activity tracking option the platform administrators have a possibility to identify the most energetic VDR visitors and to make sure that in a case of any potential misunderstandings with the employees or future partners the audit report might be exploited as evidence.
Due diligence is perceived as a rather time-consuming and exhausting process. That is why, the simplicity of utilization is among the crucially important traits that must be guaranteed by a platform vendor: room users value intuitive and convenient rooms that can be navigated without any additional efforts. Complex search system together with filtering tools such a search by keywords, uploading date, file names etc. accelerate the work within the platform. The unification with Microsoft office means that the users have a chance to work with Word, PowerPoint, and Excel documents and are not expected to change them. These features help deal participants to focus on due diligence. Also, launch of the mobile application accelerates the information analysis considerably as all the folders are synchronized on all the devices and the those taking part in the deal have an opportunity to browse the data wherever and whenever it seems to be convenient for them.