What are virtual data rooms?

The rise of the internet and continued technological change has improved the entire M&A process for both buyers and sellers, and this is exemplified in the advent of the virtual data room. Buyers can now avoid physically navigating large data rooms whilst vendors benefit from a more cost-effective and secure environment.

How do buyers benefit from using a virtual data room?

The most immediate benefit for buyers in using a virtual data room is the convenience offered by an online solution that does not require any travel. Buyers also benefit from being able to easily search through a company’s records rather than physically locating documents. Confidentiality is essential for buyers in the transaction process and a virtual data room allows for buyer’s to anonymously conduct due diligence.

How do sellers benefit from using a virtual data room?

Sellers greatly benefit from using a virtual data room due to its cost effectiveness; an online data room is much cheaper than maintaining a physical data room. Buyers are able to conduct due diligence simultaneously and this can speed up the transaction process. Sellers gain from easily controlling who accesses data in a virtual data room as it is a secure environment. A virtual data room is a much safer solution to transfer documents, as e-mailing or delivering physical documents creates numerous security risks for sellers. An additional benefit from using a virtual data room is that you can view who is accessing data the most, allowing you to identify which bidders are most interested.

A virtual data room is a good choice for sellers as they can host Q&A for buyers in an anonymous environment. Bidders can ask questions about the company and the sellers can respond to multiple buyers at once about frequently asked questions, making the Q&A process more efficient.

Find out more

Quinn M&A can assist clients to establish virtual data rooms, and provide advice on suitable options given your circumstances. Contact Quinn M&A today on +612 9223 9166 or submit an Express Enquiry form for more detail.