How to Manage Deals With a VDR

A VDR can be useful in a variety of M&A deals. It helps organize and prioritize data to streamline the due diligence process for all parties involved. It also assists in protecting private information from accidental or malicious distribution. A VDR will also allow for better communication and collaboration between internal and external teams which speeds up the process.

Many VDRs have built-in NDAs that protect sensitive documents from being scrutinized by the public. A top-rated VDR can even enhance data protection by giving administrators the ability to set the file permissions in a granular manner. This ensures that only the most important files can be accessible.

The VDR is also a great way to connect with trusted advisors such as accountants, lawyers and compliance auditors. Instead of sending documents via email, these people are able to review the documents online, thereby saving money on travel expenses and increasing efficiency.

In M&A the use of the VDR is typically used to keep the confidential information package (or “teaser package”) sent to potential buyers as part of a marketing campaign. These packages contain sensitive information that must remain confidential from competitors and other third parties until they sign non-disclosure agreements (NDAs). A VDR makes it possible for buyers to look over the information from a distance without needing to visit the company’s premises.

The top VDRs feature a specific M&A focus and are designed with workflow and organization in mind. iDeals is a good example. It is a top VDR with features specific to M&A like the ability to organize the repository into diligence categories such as Governance, Finance, IP, Human Resources, Real Estate, and Litigation. The Q&A section of the repository can be used to manage deals with VDR communicate with both internal and external teams.