A virtual data room (VDR) has revolutionized the due diligence process in merger and acquisition deals. It is a safe platform that allows interested parties to look over confidential information online and begin discussions via Q&As. It allows the M&A teams to balance speed, efficiency and depth of due diligence.
The most recent VDRs also offer features that can simplify the management of projects for M&A practitioners, for instance a multilingual user interface, which is particularly beneficial in transactions that cross borders. They can also reduce the need for manual labor by using features such as auto-elimination of duplicate requests, bulk drag and drop, full-text search, auto-indexing, and more. These advances can help companies save money, avoid costly mistakes and ultimately, get more value for their assets due to buyers being better able to conduct a thorough evaluation of the business.
M&A transactions can be complex and usually involve sharing of multiple documents with multiple parties. Many of these documents contain highly private and sensitive information, making it easy to make a mistake that could slow down the deal or stop it altogether. It is therefore crucial to select a VDR that is secure and top of the line such as AvePoint Confide.
Another consideration when choosing the right VDR for M&A is whether the platform is able to handle all aspects of the project. For example a bespoke platform like DealRoom is designed by M&A practitioners and combines the benefits of the VDR with Agile-based project management tools. Other VDRs such as Intralinks or Merrill can be employed to manage M&A projects but lack the features specifically designed for M&A.