Virtual Data Rooms are designed to assist in high-level negotiations such as mergers, acquisitions and other corporate deals that have high stakes for everyone involved. Whether you’re at the stage of sourcing bids or finalizing the deal, the last thing you need is to have your time taken up with the minutiae of preparing documents, arranging meetings and handling incidental queries.
1: Deal Preparation
Preparation of documents is exceptionally time-consuming. It’s a collaborative process with clients and advisors, and simultaneous access by several parties is often necessary to make sure you have everything that’s needed. Setting up a virtual data room takes mere minutes, and an EthosData deal manager is available to handle the scanning, uploading and indexing of all documentation, and allocation of user permissions.
2: Deal Marketing
Identifying interested bidders requires marketing of the deal. You may know who your potential buyers or investors are, but getting them interested often takes an intensive campaign. EthosData can help with this by managing the sending of teasers to prospects, and the infrastructure enables you to involve multiple bidders at the same time. You can add as many bidders as you like for no extra cost, and the data room’s reporting options enable you to track their levels of interest based on the documents that they access. You can then follow up to respond to any questions they may have.
3: Circulation of Updates
A virtual data room offers daily and weekly updates that enable you to notify all users about documents at the time of uploading them. This ensures that interested parties are kept in the loop and can view new information within seconds of it becoming available.
4: Distribution of Meeting Materials
Whether your deal management meetings take place virtually or in person, you’ll need to distribute materials ahead of each meeting. Having hard copies of confidential information in circulation is a risk to the integrity of the deal, and the cost involved in production and sending the materials can be excessive. You can upload all meeting materials into your virtual data room and circulate an information memo to the parties to notify them that the documents are available. This reduces risk and cost, and maximizes speed and convenience.
The handling of questions is a vital part of any deal process, and the channels traditionally used to manage queries include telephone and email. Neither method is particularly secure, so confidential data is at risk of being disseminated. With a virtual data room, queries relating to specific documents can be clarified in a secure environment and made available only to users with the correct permissions. This both facilitates and protects the responses.
6: Full-Blown Due Diligence
Having a virtual data room set up at the start of the deal process enables full-blown due diligence to go ahead by providing access for the right people to the data they need to review before making a decision on whether to bid or not. At the same time, the user permission options make it possible to prevent documents from being downloaded or printed by unauthorized parties.
7: Preparation of Closing Documents
Once a deal has been reached, the timely preparation and circulation of closing documents is essential to ensure that momentum isn’t lost. This requires review by all parties prior to signing, and the use of a virtual data room enables instantaneous distribution. Feedback is facilitated through the data room and closing documentation can be finalized in a matter of hours.
Complicated deals need easy solutions. Although there are many details involved in setting up the ideal data room for your organization, enlisting the help of professionals is the first step in getting organized. By utilizing our expertise, you’ll be well on your way to a safe and secure virtual environment in order to run your transaction smoothly & efficiently. The end result will be a virtual data room that was set up with significant savings of both time and money, yet does everything you need it to do in order to benefit your daily operations. Make the most of your virtual data room experience by familiarising yourself with features offered by EthosData and the benefits of using us to the fullest potential.