Virtual Data Rooms Speed Up transaction by as much as 75% in Mergers & Acquisition Due Diligence

Virtual Data Rooms Speed Up transaction by as much as 75% in Mergers & Acquisition Due Diligence

Post by ee.lightni » Sat, 19 Mar 2005 05:17:11


Virtual Data Rooms Speed Up transaction by as much as 75% in Mergers &
Acquisition Due Diligence.

As an essential part of the Mergers & Acquisitions process the data
room (dealroom or dataroom) is set up as part of the as a central
repository of data relating to companies or divisions being acquired or
sold. The data room enables interested parties to view material
relating to the business in a controlled environment. Confidentiality
is paramount and strict controls for viewing, copying and printing must
be imposed. Conventionally this is achieved by establishing a
supervised, physical data room in secure premises with controlled
access. In most cases with physical data rooms, only one bidder team
can enter the room at a time. People are brought to the data and key
documents moved by courier or post. Due diligence is slowed to two or
more times the time that it should take.

A Virtual Data Room has exactly the same strengths as a conventional
Data Room - controlling access, viewing, copying and printing as well
as setting time limits on viewing - and logging who saw what and when -
but has none of the disadvantages of being at a standard location,
needing couriers to move or update documents or needing transport of
key staff back and forth. It is also accessible 24/7 over the allowed
period. With a Virtual Data Room documents reach regulators and
investors in a more efficient and timely manner. Improvements in
efficiency aside and speed aside, a Virtual Data Room typically pays
for itself in a single M&A transaction.

Additional information at http://www.yqcomputer.com/
 
 
 

Virtual Data Rooms Speed Up transaction by as much as 75% in Mergers & Acquisition Due Diligence

Post by peterw » Sat, 19 Mar 2005 12:39:11


I was involved with such due diligence and the vendor set up two data
rooms and then set up a third (they must have run three off of things
needed). They did not disclose senior executives' renumeration, but a
smart person found a list of outstanding leave and accrued values for
accounting purposes!

Unfortunately we did not win - the CEO was being so difficult with due
diligence that he was toast no matter who bought the outfit.