Data Management Software for due diligence projects with many parties involved

For your M&A transaction to be successful, it requires a clear organization of documents, constant communication, attention to detail, confidence, and determination, this includes due diligence. It is during this process that all the activities of your company will be analyzed and studied, as a rule, it is a very time-consuming and tedious process. But with the help of modern technology, it can be easily optimized and accelerated, one such tool is a virtual data room for M&A transactions.

What is an M&A data room?

A virtual data room for M&A and due diligence are cloud-based programs that allow you to store and share documents, close deals, and discuss important issues within your space while ensuring full confidentiality and protection.

VDRs allow you to conduct multiple transactions simultaneously, for which the administrator can create separate rooms, and let an unlimited number of users into the program in real-time. Data rooms provide proper transparency of the company’s workflow, which your potential customers will be able to notice immediately, and thus speed up their decision-making. 

What functions does VDR perform for effective due diligence?

A virtual data room has several benefits that help in all phases of M&A transactions. Below we outline the main features of a

  • Document preparation and verification – So that uploading a large amount of data into the space doesn’t take too much of your time, VDRs include mass document uploading and dragging in their features. All documents are automatically reformatted into PDF format and you don’t have to think about anything but organizing your documents correctly and conveniently
  • Dynamic watermarks – watermarks are automatically added to your documents when you download them, this prevents unwanted copying or printing of the document
  • Document Access Restrictions – VDR administrator can control who can and cannot view, copy, edit, print, or forward documents, which also protects against data leakage
  • Self-destructing documents – set expiration dates after which users can no longer access them
  • Complete audit trail and tracking of user activity – the data room for due diligence allows you to track the actions of all users that are in your platform, this includes the time each user logs in and out as well as their interaction with documents
  • Question-and-answer – this is one collaboration tool that helps keep communication between the two parties and helps you answer someone’s question instantly, as you will receive automatic notification of updates to your VDR to your email
  • Data backup is a great backup plan, in case your data has been lost or corrupted, you can easily restore it from your latest backups and it won’t affect your company’s productivity in any way
  • 256-bit AES SSL encryption -This type of encryption is one of the best, it provides reliable protection against data leakage during storage and exchange
  • Virus scanning -when you upload documents to your space you must ensure they are all viruses free, built-in virus scanning within VDRs will ensure files are thoroughly analyzed and eliminated if a threat exists
  • Two-Factor Authentication – This feature serves as additional protection for your password and your login. It involves entering a one-time code when logging in, in addition to entering your password 

Thus, with all the above features, your company will be able to provide itself with a simplified and streamlined M&A transaction process in complete safety and at an accelerated pace, saving time and money.