If you’re a business proprietor looking to raise funds, prepare for an initial public offering (IPO), or simply to restructure your business using an advanced Virtual Data Room could be the best option. These secure online places permit safe storage and sharing documents. They also make the due diligence process easier and more efficient for all parties involved.
Most people are familiar with files sharing software like Dropbox or Google Docs however, these don’t offer the features needed for M&A activities. A VDR designed specifically for M&A purposes provides the ability to collaborate and allows the organization of files into categories, and also includes watermarking tools to ensure that no copying is allowed.
Many companies opt for VDRs since they can access and transfer documents at their own pace from their office or at home. This eliminates the need for meetings and allows teams to work more efficiently.
VDRs are particularly useful for tech companies that operate across geographic boundaries. In the past, leaders of tech companies required flying between Silicon Valley to New York City to meet with investors and buyers. All of this can be accomplished in one virtual dataroom.
There are two types of VDRs – buy-side and sell-side – that have different purposes during the sale or acquisition of a company. The most commonly used use of VDRs VDR is in mergers and acquisitions, where buyers need to inspect the documents of the company as part of due diligence.