A VDR can be helpful in many M&A transactions. It can help to organize and prioritize information to speed up the due diligence process for all participants. It also helps protect sensitive information from malicious or accidental distribution. Additionally VDRs can help to protect confidential information from malicious or accidental distribution. VDR can help improve communication and collaboration with internal and external teams to help speed up the process overall.
Many VDRs come with built-in NDAs that shield sensitive files from the scrutiny of a third party. A highly rated VDR can further enhance data security by giving administrators the possibility of setting granular file permissions. This will ensure that the most important files are the only ones viewed.
The VDR is also a great tool to communicate with trusted advisors such as accountants, lawyers and compliance auditors. Instead of sending documents via email, these people can access them online, saving money on travel costs and improving efficiency.
In M&A, VDRs are often used to store the confidential bundle of information (or «teaser pack») given to prospective buyers as part of a marketing campaign. These packages contain sensitive information that must remain secret from competitors as well as other third parties until they sign non-disclosure agreements (NDAs). A VDR lets buyers access this information without having to visit the company’s office.
The best VDRs feature a specific M&A focus and are virtual data room providers built with the workflow and organization in mind. iDeals is a top VDR that has features specific to M&A. For instance it lets you organize the repository by diligence categories such as Governance, Finance IP, Human Resources Real Estate and Litigation. The Q&A section of the repository is useful for communicating with teams from both sides as well.