Published on Jul 17, 2017
Last update 17.07.2017


Virtual data room: the ideal solution for mergers and acquisitions

When it comes to mergers and acquisitions (M&A), companies often distribute, share, and consult a huge amount of information. Sometimes strictly confidential. And if the topic is somewhat sensitive, data security is a major issue. But not the only issue. So what solution is best suited to help you improve, speed up, and simplify the sharing of sensitive data?

To make sure information remains within the specified framework, there are tools designed especially for businesses, allowing them to exchange data simply and securely (using strong authentication by SMS, encryption, and so on). A virtual data room can store masses of documents, while controlling who has access to them. Perfect for financial operations such as mergers, acquisitions, sales, fundraising, and property transactions.

Thanks to the virtual data room, sellers of a company or its assets can provide potential buyers with all the information needed to complete the sale. Everyone has access to the same information. So buyers can browse the documents and make an offer. Of course you can’t share sensitive documents by email in situations like these – it simply isn’t secure enough.

Having everything you need at your disposal

To complete a merger or acquisition, buyers need to have everything they need at their disposal. With the virtual data room, they can get it quickly and simply through a Q&A module. Once the data room is set up and open for a set period, sellers can appoint experts responsible for each folder (legal, accounting, corporate, etc.). Experts who will be in charge of answering buyers’ questions.

With the DilRoom solution, administrators retain control over who has the right to access the module. They can also set up a moderation system – so they can block a question, reply to it directly, or forward it to an expert. Questions are private by default, but platform admins or folder experts can also make them public. That means every potential buyer will have access to the same information.

Close analysis of the M&A data

A project with such a wide scope as a merger involves a mountain of paperwork to do with accounting, legal aspects, administration, clients, suppliers, competitors, and so on. Not to mention the large number of stakeholders involved. But digital management can help to simplify the process.

Using tools like the virtual data room generates accurate statistics on the project status and the actions of the various participants. A reporting module is vital for sellers, providing information on exactly who has consulted or downloaded which documents and for how long. Information that helps them to be well prepared when it comes to negotiations. Administrators can export custom reports and keep a close eye on all the actions performed in the virtual data room.

Guarantee M&A data security

A virtual data room is designed for a one-time use. It serves just one operation and so it has a short lifespan. Once the merger or acquisition is complete, the question then is what to do with all the data, which is extremely valuable and needs to be protected. In 2015, a group of hackers infiltrated dozens of companies, seeking to access all the information on current offers surrounding mergers and acquisitions. That’s why it’s crucial to use a solution providing a maximum guarantee on security. So only choose a trusted provider like Oodrive and a solution like DilRoom.

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