The Art Of (setting-up-your-virtual-data-room-for) The Deal

The success of a merger or acquisition depends on the seller preparing and providing the potential buyers with a well prepared virtual data room. (VDR) The more efficient a buyer can perform their due diligence, the faster the auditors and lawyers can approve the deal.

artofdeal

When we assist the target company with the creation of their VDR, a clear table of contents is built, generally on these high-level topics:

  • Business unit integration
  • Competitive environment
  • Contacts and strategic partnerships
  • Corporate governance
  • Current client contacts
  • Environmental and social
  • Financial reports
  • Human resources
  • Industry and governmental regulatory compliance(s)
  • IRS and audits
  • Marketing
  • Ongoing and historical litigation.An overview of any litigation
  • Physical property
  • Product and service production
  • Required insurance coverage(s)
  • Sales pipeline Sales
  • Stakeholder obligations and agreements
  • Technology and IP

Also, we emphasize that simplicity of working within the VDR for the buyer is deal-mover, too. We prefer (and coincidentally, sell) a Window-file-format design. Everyone knows how to use it, almost instantly. WATCH VIDEO HERE.

Building out the VDR is time-consuming for most sellers. Not the actual “VDR” part, but the collecting of the massive amount of information a buyers wants. Most buyers integrate a disclosure schedule with their acquisition agreement.

Our downloadable M&A Quick Sheet offers a simple overview of the 5 stages of an M&A from both sides of the deal.

V-5stagesM&A

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