Improve Your Due Diligence Collaboration Experience With Virtual Data Room

Virtual data room solution contains everything that is needed to become the central storage of documents and corporate information for a company of any size during business operations like due diligence. So, how does it work?

The peculiarities of the due diligence procedure

In mergers and acquisitions of organizations, and as a result, due diligence, at the stage of preparation for the transaction, the conclusion of the transaction, and subsequent integration, one of the key roles are played by information technology. Strategic and operational management decisions, as a rule, are made based on data from automated systems, therefore the organization and efficiency of information technology of a company have a significant impact on both the cost of the transaction and the issues of the subsequent merger of organizations.

Due diligence is a comprehensive diagnosis of the business as an object of sale, which consists of collecting, processing, summarizing, and analyzing information about the company’s activities in all areas to ensure the accuracy of data provided for analysis, their compliance with laws and inaccuracies and distortions. It regulates the main tasks of a comprehensive audit, the structure of the report based on them, user groups, and areas of analysis.

The main due diligence tasks include:

  • verification of provided financial, legal, and other information;
  • assessment of the company’s competitive advantages;
  • checking the correctness of documentation and timeliness of tax and statistical reports;
  • management check on the level of competence;
  • evaluation of the business plan for the possibility of its implementation.

Virtual data room for secure due diligence collaboration

An electronic archive of documents is necessary for almost any organization that regularly solves the problem of searching and copying documents at the request of external authorities, for example, as part of desk audits or tax reporting.

With the help of data room, the company can reduce the time spent by employees, reduce legal and financial risks, eliminate the loss of important documents and establish control over business processes and executive discipline. It is a secure cloud-based platform that ensures data repository and a reliable file-sharing system. Working with documents in the cloud makes it possible to organize work with remote employees and offices.

Data room provides the following benefits for due diligence procedure:

  • Safety and reliability. The system guarantees the safety and immutability of documents throughout their entire life cycle following the policies and deadlines adopted in the industry or a particular organization.
  • Secure collaboration. The system allows you to structure the company’s documentation in a single repository, ensure joint work on documents, set up clear processes for processing and coordinating various types of documents.
  • Integration. The system unloads information systems, freeing them from their unusual function of storing documents. Users are provided with convenient access from third-party systems to all documents, in compliance with the requirements of information security and restriction of the access rights policy.
  • Scalability and availability. Data room storage allows you to store more than 5000TB of documents (5 billion documents). All key services can be distributed across geographically remote servers, including Storage, Recognition Server, Integration Services. This allows you to create a single solution for a large distribution company.
  • Productivity. Increase the efficiency of searching through documents and their attributes: the transition from manual entry of attributes, in which employees skip many fields, to automatic entry will ensure that document cards are filled out, which means they will be easier to find.