How to Use VDR software for making online deals

In this article, you will learn the key points of the workflow.

The role of Virtual Data Room in online deals

All key information required to conclude a transaction must be in online storage. Today, this function is perfectly fulfilled by Virtual Data Rooms, which not only allow participants to have remote access to documents at any time but also provide a high level of security. There are also other pros of using VDR:

  • The structured, collected in one place information enables the buyer to complete due diligence faster, while the study of “live” documents can take months.

  • Another indisputable advantage of the Virtual Data Room is the ability to analyze weaknesses in advance and eliminate errors or shortcomings. For example, make sure that the necessary information is provided in full: all contracts are signed by both parties, all amendments to documents are documented, minutes and resolutions of meetings of shareholders and directors are properly drawn up, etc. Often, investors are extremely attentive to such details, flaws in the documents can delay the term of the transaction or become a reason for discounting the price.

  • In addition, a careful analysis of the behavior of the buyer or his representatives in the Virtual Data Room will help to understand which documents he is most interested in and, with a high probability, predict what arguments he will use in negotiations, wanting to receive a discount.

Key Points

To send files, the user uploads them to the store, configures access, and sends a link to the recipient. The process can be automated since many developers implement integration with file managers, mail programs, instant messengers and other popular software in client applications. In this case, the process of uploading and sending does not look much more complicated than attaching an attached file to an email. If documents are protected using DRM technologies, the recipient will have to install special agent software on the computer to control the correctness of their use. In this case, there are more control possibilities, but far from all types of data will be able to be protected with DRM – usually only Microsoft Office documents.

The key persons involved in the process of processing corporate documents may be:

â— CFO of a private company;

â— financial analyst;

â— End-user who needs to view documents.

The workflow

As for the main workflow, it provides the following stages:

1. Create a data room.

2. Downloading and structuring the documents of a private company most effectively.

3. Add new users to the room data.

4. Grant certain users access to certain documents.

5. Launch the data cabinet. All users must access at the same time to avoid misunderstandings.

6. Control of user activity: who is the most active and interested; who has not viewed any documents, etc.

7. End and close the data room.

Having gained access to the Virtual Data Room, the parties receive the most comfortable conditions for effective, regular, and structured work.