Virtual Data Rooms have a number of benefits. The reason they exist is because of their advantages over other file sharing and storage solutions. In this post we will look at all the benefits that are associated with the use of a Virtual Data Room.
Security allows the company to have control over their data at all times This is the prime reason that Virtual Data Rooms exist. Where Dropbox, Google Drive, iCloud and other such solutions are a convenient way of backing up and sharing your files, Virtual Data Rooms like EthosData provide detailed security measures to share and control what the user can do with the files that you have shared. Despite having access to documents the users access can be revoked at any point in time. In addition you can block the users ability to print and copy any document making it read-only. Companies love the ability to have such far reaching control over their confidential information which is why Virtual Data Rooms are at the heart of mergers and acquisitions, corporate repositories and fund management.
Intuitive design makes it easy to do due diligence When there are hundreds of users interacting with the same set of information it is crucial that the design of the platform is intuitive. Too many features and too much learning would slow down the process of due diligence because each user would first need to learn and then get use to how the technology works. A top Virtual Data Room provider would always provide an intuitive platform to work on.
Technology benefits the seller and the buyers by saving both time and money Most of the M&A transactions that happen usually happen on Virtual Data Rooms. The reason this technology has taken over the traditional ways of doing M&As physically is because of the disproportionate saving of both time and money through the usage of Virtual Data Rooms. All the seller needs to do is scan his documents at 150 dpi or 300 dpi and then he needs to upload the document to the secured 256-bit encrypted platform of a Virtual Data Room provider such as EthosData to start sharing his confidential information. Time taken? The amount of time it takes to scan the documents and then upload it! Cost? Depends on the time they use the Virtual Data Room for or in some cases it depends on the number of pages being shared. On the other hand a buyer gets an invitation via email to access the confidential documents. Time taken? The seconds it takes to log on to the dataroom and open the files. Cost? None!
Search allows bidders to keep track of how much work has been completed If bidders need to access 10,000 documents over a 6 month time period, it can be a tedious process if they cannot track progress. A robust Virtual Data Room will allow bidders to see which of those documents have been reviewed by them and which are still pending.
Audits allow sellers to see who are the most interested parties The ability to analyze which documents have been opened by which user, at what time and how many times allows the sellers to analyze which are the most interested parties who are likely to move on to the final stages of due diligence. EthosData creates automatic graphs to allow the sellers to view this data more intuitively. This ability also reduces the probability of litigation in the future.
Email summaries keeps everyone in the loop There are alot of moving pieces in a Virtual Data Room. The sellers are constantly uploading more data. The bidders are constantly requesting for more data. This incremental process requires a tracking ability to avoid confusion. Email summaries of documents that have just been uploaded and daily and weekly summaries of everything that has been modified in the Virtual Data Room allows the process to flow seemlessly.
Q&A allows an easily auditable interaction between all parties Everytime data is shared, questions will be raised. Where can we find the report of auditors? How did you arrive to these costing figures? How much is management being paid? The Virtual Data Room should have the ability to not only route these questions to the appropriate people but also keep a track of what the answer was, who answered it and when it was answered. The technology should not allow for any gap in communication!
Virtual Data Rooms have many benefits. From securing your confidential information to allowing the questions and answers related to these documents to flow in an orderly and auditable manner, the use of sophisticated technology has spawned a whole industry which caters to the most high profile multi-million dollar transactions in the world. If you want to keep your documents under your control at all times then you don’t need to look beyond a Virtual Data Room!
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