- Why Sterling?
In M&A, a traditional data room is a physical and secure location, storing files and documentation. Often located in the vendor’s or their lawyers’ offices. All deal teams use this space to securely inspect and review documents.
A virtual data room (VDR) is an online environment that enables the secure sharing of highly confidential files from one organisation to multiple organisations.
As data rooms are normally used during transactions, users are anyone and everyone in the deal-making community. Typically, this means corporations, lawyers and investors.
File-sharing solutions like Box and Dropbox are a great, cost-effective way to share information. However, they are not built specifically for deal-making, meaning that they do not offer critical features like Q&A and custom reporting, or offer the robust security safeguards that most data rooms have.
Where Box and Dropbox are completely self-service, data room providers will have a Customer Services team available 24/7/365 to provide support whenever you need it.
This is difficult to answer as there are a lot of variables to consider. It will depend on how long you need a data room for and the amount of data you need to store in it. As a guideline, you can expect to pay a minimum of about £1,500 for a small deal that takes 3-6 months.
There are a lot of data room providers to choose from, so picking one can feel like a bit of a challenge. The best way to find out what you’ll be getting is to ask a lot of questions:
And never underestimate the importance of liking the team. When your deal’s underway, you’ll be thankful for choosing a provider you get along with.
In the M&A process due diligence allows the buyer party to assess relevant information, for example financial records and contracts. It refers to the research prior agreeing to a financial transaction with another party.
M&A will create a lot of questions from all stakeholders. A data room makes the process easy to handle as all questions can be managed in one secure place. This is not only cutting out cumbersome and costly methods of managing excel files, version controls and emails, but also… Erase feature!
Our data rooms also offer a redaction tool which easily helps you control sensitive data.
Data rooms or (VDRs) are cloud-based, highly secure storage centres used for filing and sharing confidential information. Companies use them to share financial transactions, real estate or medical research and so on.
A data room (VDR) offers extensive security features. In a VDR you can control who sees specific information, at what time and track viewing the time. Confidential and sensitive information stays secure and within your control.
All M&A transactions require confidential file sharing. A data room can be part of the due diligence process as they provide a secure space for buyers, seller and legal teams.