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.
Only around 50% of M&A deals actually go through according to Forbes magazine. The main reason for that high failure rate is that the companies acquired looked better on paper than they actually were. This makes a well executed due diligence process critical, which is only possible if the full M&A life cycle is properly executed.
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.
Virtual 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.
We are very happy to hear that the readers of Acquisition International have recognized our virtual data room service quality by naming us “Virtual Data Room provider of the year in India” and “Virtual Data Room Rising Star- UK” in Acquisition International's 2013 M&A awards.
Acquisition International's 2013 M&A awards celebrate excellence and commemorate the achievements and hard-work of all those involved in seeing a deal through to completion. The awards recognises investors, advisers and service providers pin-pointed for their expertise in their specialised field.