Close M&A Deals Faster with Deal Management Software

In modern business, the need to automate various processes has become commonplace. So, corporations need to use secure Virtual Data Rooms to survive in today’s competitive business environment.

Implement M&A transactions securely with Data Room

According to the analysis of international experience, the current trend of concentration of production activities of international corporations is a new wave of mergers and acquisitions (M&A), which are very closely related to the dynamics of the capital market. M&A is a group of transactions that integrate the transfer of corporate control in all its forms, including the acquisition and exchange of assets. Integration processes are closely linked to the processes of globalization: the geographical boundaries between markets are blurred, aggregate demand grows, the pace of technology development accelerates, so companies do not have time to build domestic capacity on their own so it is more effective to acquire assets that are lacking.

M&A deals have become an integral part of the day-to-day business of large commercial companies. As a rule, many related transactions are carried out by external M&A service providers, such as lawyers, investment banks, and auditors.

To substantiate management decisions on the implementation of these processes, the Due Diligence procedure is carried out, which provides a comprehensive analytical review of the past, current state, and assessment of prospects of the enterprise. At the same time, the important task of Due Diligence is to identify potential threats, “unexpected circumstances” that may arise as a result of the planned operation.

Without specialized software, it becomes very difficult for companies to manage information flows, and provide collaboration. Thus, virtual data room has become an indispensable tool for evaluation procedures and other business operations.

One of the most popular types of computing systems in modern business is data storage systems, which are many distributed storage devices connected by a computer network and presented to users in the form of a single logical device of large capacity.

Main functions of the Data Room include:

  • access and authorization control to protect sensitive data and information;
  • rights management with permanent and temporary access;
  • safe collaboration with internal and external parties;
  • digital process processing and task management;
  • electronic archiving;
  • categorization, metadata;
  • activity recording and audit trails;
  • comment function and version control.

This makes the solution particularly suitable and useful for M&A advisors and their clients. High consolidation of computing power in modern Data Rooms and high data exchange rates increase the availability and reduce the cost of computing resources. The concept of cloud computing, using these features, allows you to create new types of applications and devices based on rented resources,

Advantages of using a Virtual Data Room 

There are the following pros of the software:

  • the uncomplicated recording and easy structuring of the information and documents required for the transactions;
  • the easy maintenance, processing, and provision of documents for potentially interested parties;
  • comprehensive support for due diligence processes within M&A transactions;
  • the complete and meaningful logging about the content, change steps, and access to documents.

The particular benefit of online Due Diligence is that different interested parties and people in the M&A team can access all documents quickly and at the same time from different locations.Another advantage of a Virtual Data Room is that it can be used flexibly outside of M&A transactions. From general document management to comprehensive portfolio management, a software solution can be used individually as one of the versatile and comprehensive web-based data management systems.