Virtual Data Rooms: Mergers & Acquisitions Due Diligence

5 December 2022

Data room virtual platforms are used in Merger & Acquisition transactions to facilitate the due diligence process. Virtual data rooms (VDRs) allow stakeholders to collaborate more efficiently and effectively to set valuations and close deals faster.

ShareVault has been the platform of choice for M&A for more than 15 years, with a record of more than $50 billion in transactions. ShareVault’s deal room work environment and user permissioning protocols protect the many confidential documents used in due diligence, and its software tools speed the process of organizing and accessing documents and creating a due diligence brief.

Here's how a virtual data room improves the mergers and acquisitions due diligence process:

Allows Users to Store Documents Securely

A virtual data room provides the M&A team a place to store documents securely. For M&A, these documents can include financial records, trade and vendor contracts, employee data and policies, and valuations and projections created by analysts. The due diligence team administrator organizes these documents into folders and creates passwords for users. Each user has a specific range of access, such as view only, edit, download, and/or print. The user’s devices are also logged, ensuring that even remote collaborators have protected access.

To speed the process, ShareVault has developed a Due Diligence Checklist. Upload the ShareVault Due Diligence Checklist to a virtual data room and it will automatically create a Table of Contents with folders for each item on the list. Once the folders are in place, the due diligence team can securely store the Executive Summary, confidential information memorandums (CIM), Indication of Interest (IOI), Letters of Intent (LOI), and other reference documents.

ShareVault’s virtual deal room and its software tools improve M&A transactions in a safe and secure environment. When issues arise, the experienced ShareVault support team is on call, 24/7.

Facilitate Easy Collaboration among Stakeholders

The due diligence process requires coordination and collaboration among a dedicated team, including staff members, accountants, data analysts, lawyers, and other professionals, some of whom may be in remote locations. Using ShareVault’s secure VDR, authorized team members can access documents any time, from any location, and from any registered device. When questions arise, users can use ShareVault’s Q&A feature to quickly get feedback from team subject matter experts.

Accessing documents and sharing information in an encrypted data room is far more secure and more efficient than using email, Google Docs, DropBox, and other file sharing platforms. A company can also opt in to ShareVault’s Dynamic Native File Protection (DNFP), which protects work-in-progress documents like analytics, reports, and proposals.

The due diligence team leader and administrator can monitor user activity to trace problems and gauge progress. This ShareVault tracking feature also enables a detailed report for audits and regulatory filings.

When the time is right, the team leader can provide access to prospective buyers. These parties will have the same password-protected access that the team experienced during the due diligence process. As appropriate, access can be extended to regulatory agencies.

Eliminate Redundant Work

The fastest way to organize the M&A process is to download the ShareVault Due Diligence Checklist, which automatically creates the folders for managing the process. Once the folders are in place, loading documents is a simple drag-and-drop. To speed the process, ShareVault enables bulk dragging. Mark each document with one or more hashtags - this speeds user search, and the need to replicate files and place them in multiple folders. ShareVault’s software will automatically index all folders and documents.

ShareVault knows M&A. We assign an experienced ShareVault project manager who is on call to answer questions and help the M&A team accomplish its goals.

Choose ShareVault, the Best Data Room Virtual Provider

ShareVault offers the security industry’s best virtual data room and secure document-sharing solution for due diligence, reorganizations, board meetings, product development, and other vital business processes. Our comprehensive M&A Due Diligence platform offers exceptional value from initial prep through due diligence and eventually a successful close.

Contact ShareVault for more information about the mergers and acquisition due diligence platform and a free demo.

Free Trial