Early mornings. Late nights. Lots of running around in between... The life of running a startup!
If you are about to start work on an M&A, IPO or fundraising deal, you’re also about to come across virtual data rooms (VDRs).
Now, you’re probably thinking, ‘why should I pay for a VDR when platforms like Dropbox or Google Drive let me do something similar, but for free?’
A Virtual Data Room is very different to a Dropbox or Google Drive. Here are 5 instances where you always should consider a VDR:
1) You’re sharing highly sensitive information and need 100% security
VDRs were built for enterprises to store and share confidential information about a transaction. Dropbox was built for people to quickly share photos of their pets and latest holiday with their friends.
The result is that security is paramount to data room providers.
VDRs have international third-party security certificates and data centers that are physically secured by biometric access and monitored 24/7. In comparison, Dropbox’s security has been breached on a number of occasions.
Furthermore, VDRs allow you to revoke access to a document even after a user has opened that same document. You can also keep all files (regardless of their format) protected with passwords, personalised watermarks and customisable NDAs. Dropbox only lets you password protect your links.
Faster, simpler and more intuitive dataroom
- Quick access
- Faster navigation
- Easier to add content
- Bidder insights easier access
Mergers and acquisitions are a delicate process due to the speed at which they need to happen, the amount of legislation and compliance involved and the number of key stakeholders that need up-to-date, sensitive documentation at their fingertips.
Perivan, the UK’s leading financial printer, managed services and enterprise technology solutions provider and EthosData, a world-class, award winning, global Virtual Data Room specialist, have today announced a strategic partnership following the recent transfer of the Millnet Financial Printing business (EthosData’s previous UK partner) to Perivan.
M&A transactions are complicated, and with increasing compliance requirements and data legislation set to make the process even more difficult, it’s becoming harder to make quick decisions based on critical insight. With a need to focus on the deal, the efficiency of a successful transaction and a thorough due diligence process are becoming increasingly important.
Although the data is hard to pin down, the body of research suggests that around half of mergers and acquisitions fail and fail to add any value. While this might make uncomfortable reading for any company about to undergo the M&A process, it is a timely reminder of the importance of the due diligence process and undergoing a thorough audit and evaluation process before anything is signed.
Virtual data rooms for mergers and acquisitions (M&A) have become an increasingly vital part of the transaction process and have been used widely, not only in due diligence but across the whole deal timeline.
Deals are complicated and the life of a mergers and acquisitions (M&A) professional is not simple. A typical transaction involves multiple global parties accessing confidential data from multiple locations, as well as significant time pressure from all parties. M&A advisers are responsible for making the deal happen, facilitating the agreement of the parties and closing the transaction. There is no such a thing as a simple M&A transaction and closing a successful deal can rely on how fast and efficient the information is made available. A virtual data room (VDR) can help lighten the burden.
Penta discusses with EthosData how a startup organizes a seed round. Penta is a German digital-only bank for startups and small and medium entreprises, raised early this year a €2.2M seed round.