Using a VDR for Mergers and Acquisitions

VDRs are utilized for a variety of different business-related purposes, such as mergers and acquisitions. Digital repositories enable companies to share data with other companies or investors without worrying about information that is sensitive being stolen or released. They also facilitate an easier due diligence as users can log on to access documents from any location at any time, and with specific access levels.

With M&A activity expected to keep climbing, it’s important for businesses to be ready. Sellers can reduce due diligence time by as much as 60% by using a VDR. This is because they are able to avoid costly shipping charges, repeat requests and other delays caused by traditional document management processes.

During due diligence, a seller could learn how buyers interact with company documents by using metrics of user engagement. This can be accomplished through the use of file and folder consumption analytics. This allows the seller to determine the best communication plan to pursue the deal. For example, a potential buyer who is spending more time looking over certain documents of the company may need an informal follow-up to continue showing interest in the project.

It’s important that you choose an online vdr service that offers an extremely high quality of uptime and customer support. To ensure a high degree of reliability, you should look for companies that invest in infrastructure and R&D. Find a platform with a dedicated M&A support team to help customers navigate the complexities of M&A projects. DealRoom Firmex and Intralinks are two platforms that specialize in M&A.