Merger and acquisition transactions require a number of documents, and these types of business transactions may contain confidential information. Due diligence can be a long and complex procedure, requiring multiple people to look over different documents. VDRs can streamline the process and offer increased security and visibility.
VDRs can track activities on folders and files that is among the most significant benefits they bring to M&A. This can be helpful in determining which parties are most engaged in a particular aspect of the diligence process. It can also help weed out potential buyers who are not interested or have issues. A good VDR for M&A will let users observe how long each prospective buyer spends reviewing certain documents of the company and also whether they’ve downloaded or printed any documents.
Workflow and organizational tools are also key features of the VDR. Some of these will allow the use of tags to indicate that they are scheduled to be integrated during the due diligence process, which is a great way to begin planning ahead for any post-deal challenges. Additionally, a lot of higher-level VDRs for M&A use will make use of artificial intelligence in order to improve workflow and organization. This can reduce the need for managers who are overworked during the due diligence process.
When you choose a VDR for M&A ensure that it has been specifically designed for these kinds of business transactions. For instance, DealRoom is built by M&A experts and combines a VDR with an agile-based project management software to cater to the specific needs for this type of business transaction. Other options for VDRs that are specifically designed for M&A are Firmex and Merrill, though they offer fewer additional features that cater to the unique requirements of this type of transaction.