Mergers and acquisitions are a common way to help businesses grow, but can be risky. It is crucial to be aware of the risks that can arise during these transactions, and how to avoid them by having the right tools available. A virtual data room is one such tool that can help you navigate the M&A process in a smooth manner, from due diligence to integration after the deal.
M&A due diligence is a frequent use scenario for a VDR because buyers require access to large volumes of sensitive documents as part of the M&A process. The review process is costly when physical papers are involved, but a digital data room provides an easy-to-use interface that allows both sides to exchange information without having to travel. In addition the VDR can be cancelled at any time, ensuring that the confidential information isn’t divulged to third parties outside of the M&A transaction.
It is crucial that you fill your data room online with all the necessary information for M&A due-diligence. This covers a broad range of categories, such as operational data (customer lists and supplier contracts) as well as legal data (shareholder agreements, intellectual property filings, corporate documents) and commercial data (market research reports and sales figures). Include any relevant patent documents. Also, you must include any financial statements that could be used to assess the financial condition of the company as well as determine its value.