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 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.
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 DataRoom 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:
If you’re still using FTP or other consumer storage and transfer solutions for your business requirements, here are 3 reasons to switch to an secure modern solution such as a virtual data room. Remember when you discovered FTP (file transfer protocol) and you thought it was so advanced to be able to upload your data to cyber space? In the good old days before online security became a critical issue, FTP was the answer to transferring information, particularly large files. The problem is, FTP is 40 years old now, and that’s ancient in terms of information technology.
Your
data rooms are all set up and you’re ready to enter the due diligence stage of your merger or acquisition. As was the case in the pre-due diligence phase, the actions depend on whether the process is driven by the buyer or the seller. In the third in our series of posts on the M&A life cycle, we’ll take a look at both options, following on from the planning done at the end of the previous stage.
Investment bankers play a key role in most Virtual Data Rooms. Their role matching companies and assets with bidders and driving the M&A transaction is critical to make deals happen. Investment bankers normally create significant value to their clients, specially when they focus on one specific industry for many years and are able to read and sometimes even set M&A trends. Based on fourteen years of experience running Virtual Data Room processes, we have noticed that investment bankers play a crucial role to make the deal happen by:
