VDRs can be utilized to serve a variety of business reasons, such as mergers and acquisitions. Digital repositories can assist companies share information with other companies, investors or any other outside party without placing sensitive information at risk of being stolen or released. They also enable a more efficient due diligence because parties can log in to review documents from any location, at any time, and with specific access levels.

Companies must be prepared to handle the expected rise in M&A activity. Utilizing a vdr to manage mergers and acquisitions, sellers can shorten due diligence by as much as 60 days. They can avoid expensive shipping fees, repeated requests and other delays caused by traditional document management processes.

During due diligence, a seller may get a better understanding of how a buyer interacts with company documents by using user engagement metrics. This can be achieved through the use of file and folder consumption analytics. This will help the seller establish the best way to communicate with potential buyers to pursue the transaction. A potential buyer who spends a lot of time reading documents regarding the company might require warmly followed up with to continue showing interest in the project.

It’s important that you choose the right vdr company that provides an excellent level of uptime as well as customer support. Look for companies that invest in infrastructure and R&D to provide a high level of reliability. Furthermore, you should find platforms that have an devoted M&A team to help customers through the many complexities of an M&A project. DealRoom Firmex and Intralinks are some platforms that specialize in M&A.

Virtual Data Room