A virtual data room is a secure place that is used to store sensitive data, usually for litigation or mergers and acquisitions. Check why the M&A data room is the must-have tool for corporate executives in the article below.
The Main Gains of the Virtual Data Room for M&A
Trading transactions such as mergers and acquisitions (M&A) can include up to several thousand pages of documents that need to be stored, exchanged with customers, read, worked with, and tracked their movement, which is not only laborious but also an expensive process.
Understanding the quality of the acquired asset comes from the information that the seller provides to the buyer. The buyer also receives additional information during site visits or from any other information sources. The information includes accounting and tax reporting, documents on significant assets, debts, etc. According to investment experts of companies, the ultimate goal of any M&A transaction is to increase the company’s value.
Preparing for a deal is a difficult and responsible process on which the continued existence of a business subsequently depends. Often, in order to save money, the parties neglect the opportunity to use professional legal and investment advisors. Such a position could potentially lead to a complete loss of control over the business and significant financial losses.
Among the main solutions, you can get with the virtual data room at https://suntrics.com/tech-blogs/ma-data-room-solutions/ are as follows:
- External financial and technical audits.
- Implementation of a technical solution by an external company.
- Joint projects of companies.
- The process of merger/acquisition of companies.
- Compliance review.
- Intellectual property theft cases.
- Fraud detection and investigation.
Why Is M&A Data Room the Must-Have Tool for Corporate Executives?
In mergers and acquisitions, the M&A DataRoom is typically set up in the back office, or vendor’s office where buyers, sellers, and transactional attorneys can meet to access documents. The virtual data room is used in cases where it is necessary to provide simultaneous access to a single source of information to several users from any geographical point. At the same time, access to viewing (downloading) documents can occur only after appropriate authorization by the manager.
M&A data room organizes the process of collecting information for large transactions and auction sales, acting as a seller, and creating a virtual data room for buyers during due diligence procedures. The company’s specialists conduct interviews with the management team of the target company and coordinate conference meetings and online meetings with the staff of the target company. The M&A data room will also arrange for an inspection of the target if required.
The M&A data room is the must-have tool for corporate executives because of the next features:
1. Secure File Transfer.
Data stored in or transmitted through the M&A data room is secured with 256-bit AES encryption.
2. Remote file management.
The server captures all client devices. The remote file management feature allows you to lock lost devices and delete folders synced with the data room.
3. File lock.
You can lock any file or folder, after which no one can change it until you remove the lock.
M&A data room made workflows pleasant and intuitive. If you, as a buyer, are a large branch holding company, you can have one company that owns all the assets and a lot of subsidiaries and affiliates. And you need to understand which employees of which organizations within your structure receive information from the person who discloses it, what they do with it, and where they go with it.