The process of mergers and acquisitions is a very common operation of modern business. But integrating multiple companies never goes smoothly and quickly. Absolutely everything needs to be carefully thought out: the combination of the culture of offices, staff, and IT structures. When examining the background of their potential partner, professionals deal with a large number of confidential documents. This data requires careful control and management because the deal’s effectiveness and your company’s safety depend on it. In this article, you will learn how to manage the document flow during M&A and make it as simple and efficient as possible.
What is a virtual data room?
Due diligence is a basic, multi-step M&A process that can stretch over months. This operation is paramount in the transaction and implies a thorough examination of the company’s activities to be acquired. It is a necessary process that takes place in the interests of both parties because it determines whether the partners can achieve successful synergy in the long term. During due diligence, many documents are exchanged between the parties, ranging from financial and legal to health and regulatory documents. These data require special protection because if the transfer data leakage occurs, the company risks losing its reputation and credibility and large monetary expenses. To give potential partners full confidence access to your sensitive data, use a virtual data room solution. VDRs are secure cloud spaces that are used to conduct various business processes. They use a DMS system that provides the following benefits:
- Flexible permissions
Protect your documents by using different levels of access. For example, you can control the visibility of papers and the ability to copy, edit, forward, and print. Grant these permissions only to trusted individuals, and ensure 100% data leak protection.
- Global Sharing
Now your partners don’t have to be physically present during due diligence. Instead, they can access documents from any location, device, city, or country.
- Single Access
VDR uses a single document search and management system, so you don’t have to be in and out of different content systems. Switch freely between spaces, save time, and do your due diligence in comfort.
VDR and post-transaction integration
Document sharing activity doesn’t wane after a deal is done. On the contrary, the hardest process – integration – begins when it has already been concluded. Both parties need a common space to help them connect their data and IT structures. VDR allows companies to do this as quickly, efficiently, and economically as possible. The data room can help during all phases of a merger and acquisition and even after the transaction is complete.
Other benefits of VDRs in document management
The Data Room allows you to store your important documents in a cloud-based space. This centralized space has all the documents you need to create a transparent document structure and keep it fully organized. It will become much easier for your partners to conduct due diligence, leading to faster transaction completion because you can use the following features:
- Mass Download – upload the entire flow of company documentation in a single click
- Automatic indexing – your documents will be in a logical order as soon as they’re uploaded
- Drag & Drop – Drag and drop documents, create unlimited folders and subfolders, and build an intuitive document system
- Smart search – you or your invited users can easily find the file you need by typing just one or a few keywords