VDRs are used for many different business reasons, including mergers and acquisitions. These digital repositories allow companies to share their data with investors or other businesses without worrying about sensitive information being stolen or leaked. Due diligence can be completed more efficiently as the parties can access documents from anywhere anytime, and with control of access levels.
With M&A activity expected to keep rising, it’s essential for companies to be prepared. By using a vdr in mergers and acquisitions, sellers are able to shorten due diligence by as much as 60 days. They can cut down on costly shipping fees as well as repeated requests and other delays caused by traditional document-management processes.
During due diligence, sellers can gain insight into how a buyer interacts with documents from the company by using metrics of user engagement. This can be accomplished through file and folder consumption analytics. This allows the seller to determine the best communication plan to move forward with the deal. For instance, a potential buyer who is spending more time looking through certain company documents might require an encouraging follow-up in order to continue showing their interest in the deal.
It is crucial to choose a vdr provider who offers the highest level of uptime and customer support. Look for companies that invest in infrastructure and R&D to provide a high level of reliability. Find a platform that has dedicated M&A support team to help customers navigate the maze of M&A projects. DealRoom Firmex and Intralinks are two platforms that specialize in M&A.