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). A VDR allows multiple parties to share and collaborate on a deal’s critical information through a secure and encrypted web platform.
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?’. Well, to be precise, a Virtual Data Room is very different from Dropbox or Google Drive.
Here are 5 instances where you should consider a VDR, always:
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 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.
Technology is a critical piece of the business and all technological tools need to be operating at peak performance for a business to be able to maximize its operation, services and sales.
If you are looking for ways to share files, you probably have asked yourself the following question:
'Why should one pay for a Virtual Data Room when file-sharing platforms such as Dropbox, Box.net, or Google Docs are free?'
So, let's find out...
The actions you take in the early stages of a merger or acquisition transaction through a Virtual Data Room will set the tone for the remainder of the process. This can be daunting, especially if you’re new to the environment, but by planning ahead and giving special attention to certain policies and procedures you can ensure a smooth, streamlined process.
Virtual datarooms replaced physical datarooms years ago, mainly used during the due diligence process. But it is now that we are really seeing the additional benefits of a dataroom in the early steps of a transaction:
