The legal virtual data room allows you to work not only with documents for clients but also create/approve internal applications, which greatly speeds up and simplifies everyday work.
Why It Is Recommended To Choose the Virtual Data Room for Legal Needs?
The developers recommend using the VDR for conducting critical business events: mergers and acquisitions, audits, and preparation for an IPO, to work with personal information of public figures, as well as to protect intellectual property. VDR provides secure access to documents for all interested parties, including third parties involved in transactions: lawyers, bankers, auditors, experts, and representatives of regulatory bodies.
Thus, the main purpose of the virtual data rooms for legal needs is considered to reduce competition between similar companies and increase production efficiency. And the main goal of the acquisition/takeover process is to achieve instant growth through the purchase of a second company. Another difference between the two is the size of the businesses. In a merger, the size of the merging companies is often the same. But in a takeover, the buying company is usually larger than the company being acquired.
During using the virtual data room for legal purposes, everyone interested in buying gets access to a standardized set of data. In particular, due diligence, as a rule, provides:
- General information about the company: statement of registration, articles of association, information about the directors, company structure, affiliated companies, etc.
- Information on the property status and liabilities of the company: a list of all tangible and intangible assets, information on the available short-, medium- and long-term liabilities (indicating debtors and creditors, interest rates, payment terms), mutual obligations within the company, etc.
- Financial statements: annual and quarterly balances, income statement, auditor’s report, etc.
- Existing agreements with the collective and trade unions in the framework of labor legislation, pension benefits, etc.
- Other contractual obligations and rights: contracts within the company, leases, agreements with customers and suppliers, etc.
- Information about possible legal processes.
The Best VDR Providers for Legal Needs
The best virtual data room supporting tools are needed to fill potential gaps in the target audience – either they can help achieve specific communication goals at the lowest cost, or provide additional benefits in terms of impact on the consumer at the point of sale or consumption of the product. Thus, when using several communication tools, there is a possibility of a synergistic effect.
Among the best virtual data room providers for legal needs are:
- SecureDocs Data Room.
- Datasite Diligence.
- Firmex Virtual Data Room.
- ShareFile VDR.
Based on the above data, the following conclusions can be drawn: despite the fact that for most of the respondents, the virtual data room provider is not an important criterion when choosing a place to shop, the absolute majority are their participants. For the respondents, the most preferable are discount programs. In addition, they are interested in non-material benefits, but the most attractive to them are material ones.
If the deal using the virtual data room for legal reasons ends with a sale, then the client is transferred to the loyal segment. This means not only high-quality service, but also the work of the marketing department, which will periodically communicate with the client, and VDR providers will help you choose the most effective channel and frequency of interactions. The result of such a strategy is a repeated sale when it comes to goods or the renewal of a service.