How Virtual Data Room Helps Investment Banks During M&A

Posted by Lori Wade on October 22nd, 2019

The processes involved in Mergers and Acquisitions (M&A) are often handled and supervised by investment banks. They are in charge of all transactions between the target company and the acquiring or investing company. As a result of the numerous documents that are generated, investment banks make use of virtual data rooms such as DealRoom to streamline all necessary documents and procedures that are generated during the due diligence in M&A. An investment banking virtual data room comprises important data content and operational documents that are shared between the investment banks and the merging companies. By using the virtual data room, it saves a lot of time over which the deal is successfully concluded. 

There are distinctive features that virtual data rooms possess which make them vital to investment banks.

  1. User Access Controls

Since investment banks oversee all transactions and due diligence during mergers and acquisitions, the user access control of the virtual data room is exclusive to them. This further highlights the safety and security of all documents of financial transactions that are involved in M&A. The interface can be set to View Only which prevents an external party or even an invited user from downloading or editing files that are stored on the investment banking virtual data. 

  1. Faster Deal Process

Investment Banking M&A deals proceed faster with the use of virtual data rooms by investment banks as a result of the software's unique features. Foremost, setting up a merger with a virtual data room only takes less than ten minutes. Moreso, the process is quite easy to undergo and its interface, user-friendly. It does not require special expertise to be able to sort out M&A financial documentations on the virtual data. In other words, no training is required for investment banks to be able to use the virtual data room for investment banking M&A.

  1. Automated alerts

During due diligence and performing merger tasks, investment banks are consistently alerted o the status of each activity. By this, they will be able to monitor closely M&A deals and also react with appropriate solutions when the need arises.

  1. Easy document search

Due to the numerous documents involved in mergers and acquisitions, investment banks also employ virtual data room to easily locate any files or data. From the pool of documents, the virtual data searches out any entry either Users or documents. 

In case there is a need for auditing and filing reports, a virtual data room also makes eases investment banks of stress. By using an M&A virtual data room such as DealRoom, investment banking M&A can be done more easily and faster.

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Lori Wade

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Lori Wade
Joined: October 10th, 2019
Articles Posted: 3

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