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.
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
- 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.