| Merrill Datasite |
|
Shorter Bid Periods and Accelerated Deal Times are Only a Few of the Many Advantages Provided by Virtual Data Rooms
Fuelled by globalization and advanced technology, business transactions are being completed at a record pace, and virtual data rooms are proving to be essential to the process. By significantly reducing deal time and providing both buyers and sellers with better information management tools, virtual data rooms increasingly allow M&A professionals to quickly and efficiently review relevant business information and facilitate transactions around the world.
Virtual data room or VDR is the electronic equivalent of the physical data room, with the added benefits of increased speed-to-market, flexible hours and efficiency. Convenience, control, scalability, reduced time and cost savings are the key reasons why the virtual data room has gained popularity. This online document repository facilitates the secure exchange of sensitive information between buyers and sellers during a merger or acquisition, IPO, secondary offering, bond financing, credit facilities and restructuring, significantly reducing transaction costs and time.
Rapid, Steady Migration from Paper to Virtual Data Rooms
For more than 70 years, the paper data room has been well known as the secure, continually monitored venue where proprietary business documents and financial data are made available for due diligence review. Over the past five years, however, VDR technology has dramatically transformed this practice by facilitating easier access and review of the vitally important information and a streamlined transaction flow. With virtual data room usage growing at a steady rate, industry experts estimate that 65 percent of M&A assignments are now being handled through the VDRs.
Streamlining the workflow and increasing transaction speed, a virtual deal room offers benefits to both parties. Buyers desiring to quickly determine a potential target’s value enjoy the convenience of working from the comfort of their offices or from any Web-enabled portal, without having to arrange for travel or dealing with schedule restrictions caused by competing buyers. As all relevant financial and corporate infrastructure information is efficiently organized and made available online, diligence teams can take advantage of the VDR’s electronic search and navigation tools to aid in their discovery process.
One of the market leading providers is the Merrill DataSite VDR solution offered by Merrill Corporation. Through the deployment of a cutting-edge technology, multi-lingual customer service and constant development upgrades, Merrill DataSite has emerged as a leading provider of VDR technology.
With Merrill DataSite’s advanced features, all documents are viewable in a common format and are 100 percent text searchable in any romance language. In turn, buyers may easily identify documents of importance and bookmark them using an electronic equivalent of a “Post-it®” note within a stack of paper. Review teams gain peace of mind knowing they are equipped with a tool that allows them to more easily uncover answers to pertinent business questions. With full search functionality, buyers can more thoughtfully establish a basis for the price they are willing to pay for an asset under consideration.
Determine Buyers’ True Level of Interest and Intent
For corporate managers selling their assets, a virtual data room’s reporting tools represent a great value in determining buyers’ level of interest and intent. With the help of Merrill DataSite, sellers can access the reporting tool and identify who is reviewing data, which documents are being reviewed, for how long, and in what order, allowing to determine how serious the potential buyer is. If the reports show that “C-level,” and not junior level managers are reviewing the documents, the opportunity may be judged as more realistic.
Furthermore, certain VDR reports can potentially be used to specifically indicate that documents have “in fact” been reviewed, and act as proof that disclosure requirements have been met. This capability can minimize legal risks and potential holdback claims.
Gain Greater Control and Flexibility over the Data Display
Greater control and flexibility in the organization and presentment of data is another benefit of the virtual data room. Sellers can more easily cast a wider net to engage qualified bidders around the world in an effort to maximize sale price. At the same time, administrators may choose to withhold certain information that is not relevant to particular viewers or completely limit their access to certain documents.
Virtual data rooms such as Merrill DataSite* employ rigorous security protocols that regard each person in the data room as a unique entity. Site administrators are given highly specific, individualized control that allows them to grant or limit document actions such as viewing, printing, cutting and pasting content and access to original source files. As company information can sometimes be extremely sensitive, having such safeguards and controls is critical.
* Merrill DataSite is ISO 20007 certified.
Accelerate Transaction Time with Faster Set-up and Greater Responsiveness
The significant benefit in choosing a VDR over a paper data room is the dramatic reduction in the costs and time spent searching through the endless boxes of paper, as well as setting up and monitoring of the paper data room. A VDR’s technology and support services can yield extremely rapid results and provide a selling team as well as the buy-side with a greater advantage in unique market conditions.
With a multi-lingual staff available 24-hours a day in the United States, London, Frankfurt and Paris offices, Merrill DataSite’s team can scan, upload and organize up to 50,000 pages of content from any source in 72 hours or less. Merrill is always flexible and ready to serve its clients’ needs; it can deploy a team anywhere in the world to physically scan information and upload 10,000 pages or more per day. There is also an option for the client to personally upload any quantities of electronic document files onto the site.
Adding Language Translation to the VDR
With unique requirements particular to European markets, it can often be difficult to move information from one country to another. A VDR transcends physical boundaries by capturing, indexing, presenting documents and making them accessible from any Internet browser. Equally important, potential language translation requirements must also be addressed. Merrill DataSite has upgraded its VDR services by adding translation features for both machine and certified renderings, providing viewers with more flexibility and speed.
Technology that Transforms Deal Making
Regardless of the complexity of a given transaction, a smooth due diligence process that reduces transaction time is a critical element to deal making. Merrill DataSite virtual data room solution is designed to optimize the due diligence process. From the moment you turn over your content to Merrill DataSite, it delivers an unbroken, end-to-end "chain of custody" using its own people, facilities, processes and technologies – from scanning and indexing to project management and technical support. With its deep roots in financial and legal document solutions, Merrill Corporation has a cultural, organization-wide discipline in the management and processing of confidential content. Whether it’s an M&A deal, IPO or secondary offering, REIT, loan or financing facility, bankruptcy, or any other transaction requiring a due diligence effort, Merrill DataSite enables faster, smarter and better deal-making.
For more information please go to: www.merrillcorp.com/datasite |
