VDRs can be used for many different business needs, including mergers and acquisitions. They can help companies share information with other companies, investors or any other external entity without placing sensitive information in danger of being stolen or released. Due diligence can be completed more efficiently since the parties have access to documents from anywhere and at any time and with granular control over access levels.
Businesses need to be prepared for the expected increase in M&A activity. By using a vdr in mergers and acquisitions, sellers can reduce due diligence time by as much as 60 days. This is because they are able to reduce the cost of shipping, repeat requests and other delays resulting from traditional document management processes.
During the due diligence process, sellers can gain insight into the way a potential buyer is engaged with company documents by the use of user engagement metrics, as well as analysis of consumption of files and folders. This allows the seller to identify the best strategy for communication to move forward with the deal. For example, a potential buyer who spends a lot of time reviewing certain company documents may need an encouraging follow-up in order to continue showing their interest in the deal.
When choosing a vdr for mergers, it’s important to choose a service that has strong up-time and robust customer support. Look for companies that invest in infrastructure and R&D to ensure a high level of reliability. Additionally, find an online platform with a dedicated M&A team to assist customers as they work through the complexities of an M&A project. Some platforms that specialize in M&A include DealRoom, Firmex, and Intralinks.