Virtual Data Room For M&A Auditing, Management, And Reporting

Tens of thousands of users, millions of documents, and a geographically remote team: M&A business processes at the scale of large companies become complex. Data room simplifies the interaction of employees and helps build efficient distributed work of large-scale enterprises. Here is more about it.

M&A transactions in a modern business environment

Mergers and acquisitions (M&A) are economic processes of business and capital consolidation, as a result of which larger companies appear on the market instead of several smaller ones. A merger is a combination of two or more companies, which results in the formation of a new, merged one. Another form is the consolidation of assets, when two business units contribute their assets to the authorized capital of a third, forming a joint business. The third option is affiliation, when one company ceases to exist, completely merging into another, to which all its rights and obligations are transferred. An acquisition is a transaction in which one corporation acquires more than 30% of the shares or shares in another while maintaining the legal independence of the acquired company.

The right choice of M&A strategy allows the company to achieve many different goals. This is not only an increase in indicators but also a reduction in risks or a business out of a difficult situation.

What is a virtual data room?

Following virtual data room is a full-packed digital solution that is used for the execution of M&A transactions, maintenance of the register of contracts with observance of normative terms of storage, coordination, and sending of documents to contractors, control of their return.

Data room is a service that will help your company’s sales team build long-term trusting relationships with their customers. It provides functionality that will help you easily find the most promising customers, and then maintain mutually beneficial relationships with them. With this toolkit, your company will plan and analyze the entire sales lifecycle, find new ways to accelerate deals, uncover new areas of revenue potential, and find new ways to improve the effectiveness of your sales team.

How does the data room work?

Virtual data room consists of 3 main modules, which determine the success of the M&A deal:

  • Auditing

The system provides transparent coordination according to the regulations approved by the company – the progress of the process can be checked at any time. All contractual documents are stored in a single structured repository and are linked into sets for convenience. In the register of contracts, documents can be filtered by the main parameters.

  • Management

Data room allows you to capture all tasks according to a standard algorithm and track their status. It is enough to take the form of the contract, the payment order, or the commercial offer once, to load in the system, and the necessary document will always be at hand. This automates the interaction with buyers and customers and helps to keep track of documents in a few clicks. This will reduce the time spent on routine tasks, which will allow you to focus on really important things.

  • Reporting

Data Room collects information on all customer cards and prepares illustrated performance reports: in the format of graphs, charts, or percentages of completed transactions. This will allow you to pinpoint the most effective sources of leads and effective strategies. The deal execution analysis function is an advanced analytical tool for evaluating the efficiency of work on deals in a company.

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