Virtual Data Room Blog

How can law firms benefit from using Virtual Data Rooms

Jul 12, 2013 8:09:00 AM / by Kamal Raj

Virtual Dataroom for Law FirmsVirtual data rooms can be very helpful for lawyers participating in M&A transactions.  The role of corporate law firms’ M&A departments in corporate transactions (M&A, IPOs, refinancing) has changed dramatically in the last years with lawyers now getting involved in every aspect of the transaction. From overseeing the due diligence process through to guiding their clients in the achievement of their business objectives, the work requires secure, 24/7 access to confidential documentation for all parties in the transaction.

Virtual data rooms streamline this process considerably, making it possible to allow access and file sharing across verticals within both the client’s organization and the law firm. The facilities also enable private communication between parties that isn’t subject to unsecured networks and email.

Highlights of using virtual data rooms for this purpose include:

Seamless Access Across the Globe -

Involvement in an M&A deal usually means spending long hours going through documentation. This usually happens in the office to accommodate the need for security, and additional time worked over weekends take a toll on your health. The ability of virtual data rooms to provide seamless access to data from anywhere in the world gives you the flexibility to work where—and when—it suits you. At the same time, the data security is never compromised, regardless of where you access it from. No more sending sensitive documents by courier, or stowing insecure flash drives in your carry-on bags!

Ultimate Document Security -

Using virtual data rooms provided by reputable service providers lowers the risk of having your intellectual property landing up in the wrong hands. By storing the information on a shared network or sending it to your lawyer by email, you’re risking theft and loss of control from hacking, malware and virus corruption, unintentional deletion or misplacement, corporate espionage and interception by access to backups and email.

In addition, the functional control provided by virtual data rooms means you get to decide who is able to forward, copy or print a document. Even after a user downloads a document to their computer, if the deal ends or the user is removed from the project you’re able to have all files locked down remotely. This gives you the ultimate security and control over your M&A documentation.

Never Miss a Single Piece of Information -

Just so much easier than going through cabinets of files to find specific documents, the Search tool available in virtual data rooms gives lawyers a way to find complete material on a particular topic. By searching on a keyword or phrase, you can pull up every piece of related information on a single screen. It’s not possible to overlook something because a document is misfiled or missing. In addition, as new documents are uploaded into the data room, the system notifies all parties with appropriate permissions. This enables you to stay updated on the information available.

Reporting and Audits -

Virtual data rooms have in-built audit trail functionality that provides a record of all document actions. You’re able to pull log reports that show whether your law firm has reviewed information, when documents were opened and by whom. You’re also able to see when data is downloaded, printed or forwarded. The log reports help you to determine whether the law firm has taken account of all necessary information before delivering a professional opinion.

Both law firms and clients score by using virtual data rooms during an M&A process. It simply doesn’t make sense to try and save a buck or two by using outdated methods of file sharing and document review. With the risks inherent in any major business transaction, the security of your information is paramount to the success of the venture.

 

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Topics: M&A, Law, Lawyer, legal, virtual data room