Mergers and acquisitions have resumed since September 2020, a sign that the markets view growth operations with a benevolent eye. Data rooms, these virtual data rooms or VDRs (virtual data rooms), therefore have a bright future ahead of them.
M&A players have been going through “trading rooms” for almost a century now to ensure the success of their due diligence and “Fusac” processes. The m&a virtual data room software that exists today is much more useful, in particular thanks to Cloud technologies. Ultra-secure, they make it possible to exchange in a very supervised way around growth operations as diverse as the purchase of assets, the development of new products, real estate transactions or even questions of patents and intellectual property.
Data Room Software: What Use During a Merger-Acquisition?
Data room software is particularly well suited to issues specific to Mergers & Acquisitions. These financial operations effectively require making a certain number of documents available quickly and in a hyper-secure manner. This is one of the main features of VDRs. These solutions also integrate internal and external stakeholders according to different levels of access and authorization to the data center.
Secure Access to Large Amounts Of Data
In the context of an M&A operation, the main advantage of data room software is to provide access to a large number of documents. Indispensable during the due diligence period, the virtual data room makes it possible to download large files. If the solution is well designed, it will also help users to categorize their data in a few clicks, to facilitate the work of buyers and sellers.
The data rooms, as well as the collaboration software, also offer all the security criteria essential for a large-scale operation such as a Fusac. The software will encrypt the data and secure access to the virtual data room, from all the browsers concerned. The data will have the same degree of confidentiality, whether users consult them from their laptops or from their tablets, in France or abroad.
The data room software also provides granular access to sensitive files. A VDR effectively offers the possibility of creating a team of collaborators, administrators, but also external stakeholders. The group thus integrates other companies, regulatory bodies, as well as service providers such as notaries, lawyers and other consultants. With the virtual data room, you can also exclude certain internal company actors, such as the IT department, to improve working in a closed circle and limit access to data.
The general management thus prevents any risk of data leakage. It also makes sure to protect the independence of the stakeholders, by guaranteeing the confidentiality of their exchanges. The sales teams also retain visibility and the power to intervene in the question-and-answer process that characterizes due diligence.
All The Flexibility of a VDR for Accelerated Due Diligence
Data room software is therefore one of the essentials for a successful M&A. They are all the more so as they ensure the responsiveness of the teams, in a context where finding the right timing remains a criterion for success. Data room software effectively provides real-time access to information, regardless of the schedule or the geographical location of the actors involved. The Merger-Acquisition procedure thus gains in flexibility, and therefore in speed.
The VDRs therefore concentrate all the elements necessary for the success of a Fusac operation:
accessibility of a large number of documents, remotely and from different media;
limitation of permissions to access and modify files;
real-time consultation, to speed up “due diligence” processes.
vdr software solutions for service providers and m&a firms.