What is a Virtual Data Room by guym13

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									Virtual Data Rooms
      …The Wave of Future
Introduction



                             An alternative to the physical data room involves the setting
                             up of a virtual data room in the form of an extranet to which
                             the bidders and their advisers are given access via the
                             internet.   An extranet is essentially an Internet site with
                             limited controlled access, using a secure log-on supplied by
                             the vendor /authority, which can be disabled at any time, by
the vendor/authority if a bidder withdraws. Much of the information released is
confidential and restrictions are applied to the viewer’s ability to release this to third
parties (by means of forwarding, copying or printing). This can be effectively applied to
protect the data using Digital Rights Management.


In the process of Mergers & Acquisitions, the data room is set up as part of the central
repository of data relating to companies or divisions being acquired or sold. The data
room enables the interested parties to view information relating to the business in a
controlled environment. Confidentiality is paramount and strict controls for viewing,
copying and printing are imposed. Conventionally this is achieved by establishing a
supervised, physical data room in secure premises with controlled access. In most
cases, with physical data room, only one bidder team can access the room at a time.
This becomes time consuming.


A Virtual Data Room has exactly the same strengths as a conventional Data Room viz
controlling access, viewing, copying and printing as well as setting time limits on viewing
and logging. It has none of the disadvantages of being in a standard location, needing
couriers to move documents or transporting of key staff and personnel back and forth. It
is also accessible 24/7 over the allowed period. With a Virtual Data Room, documents
reach the regulators and investors in a more efficient and timely manner. Due to
improvements in efficiency and speed, a Virtual Data Room typically pays for itself in
a single M&A transaction.


A Virtual Data Room is quick to set up. Scanned data and existing electronic files can be
mixed, information can be added or eliminated at any time (the changes could be logged
if required) and any or all information can be restricted to any or all registered viewers at
any time.


Benefits.


The largest financial benefits accrue to the seller although buyers also benefit. For the
former, advantages include:


       • Improvement in the number of bidders.
       • Increased bid throughout (and time zone access) if the virtual data room is
         accessible 24/7 over the allowed period.
   •     Increased control and understanding of bidders.
   •     Resulting 20%-30% higher bid values.
   •     Increased speed of transactions owing to improved accessibility
   •     Enhanced information secures more deals at higher prices. Conventional
         physical data rooms restrict the bidder or buyers’ ability to get the correct people
         to the room simply due to the physical location. However, Virtual Data Room
         opens up global markets for M&A, takeovers and property deals compared with
         purely face-to-face and hardcopy document transactions (i.e. business letters).
   •      Information cannot be downloaded and taken away in a true Virtual Data Room -
         only viewed by a user with the correct permissions.
Concerns


   •   Unfamiliarity with benefits:
   •   Poor understanding of Return on Investment: (ROI) Belief that Virtual Data
       Rooms are a means of saving funds on a relatively small cost centre rather than
       a means of improving profitability, revenues and deal flow with the same
       resources.


Legasis provides you with

Speed:

                     A dedicated data room where buyers, attorneys, accountants–
                     everyone     involved   in   your   deal–can   review   documents
                     simultaneously around the clock, add, remove and edit documents
                     in minutes and from any location and complete your due diligence
                     in days, not months.




Simplicity:
                     As a deal manager, you can add, remove and edit documents in
                     minutes. You have complete control over which documents are
                     “read-only”, printable or downloadable. You can closely monitor the
                     access.

                     You can instantly view and download access reports showing who
                     did what and when. Batch print and save tools allow authorized
                     users to access large numbers of documents. You can even
                     watermark documents and prevent them from being "screen shot."
                     It’s your deal. Virtual Data Room helps you make it, your way.
Service:

            No two deals are the same. We assign a dedicated project
            manager and service team with the specific expertise your deal
            requires which includes attorneys, M&A experts, IT and other
            professionals–all with the contextual knowledge needed to clearly
            communicate with their client counterparts. They are available to

 Service    you and your end users, 24/7. Highly skilled technicians who can
            work at your site handle document gathering and imaging. From
            content modification to buyer access to index consultation, you will
            get what you need, when you need it.



Security:

            Virtual Data room electronically stores all of your essential
            documents on our secure Server. We protect your documents
            using sophisticated encryption software, multiple firewalls and
            powerful virus detectors. Then we double-lock the door, so to
            speak, by continually auditing your documents until your deal is
            done. We use the highest-level security technology combined with
            proven best practices. All project team members are bound by
            confidentiality agreements.
VDR is all about


      24/7 access worldwide
      Total security and control
      Optional restriction of printing, emailing and copying
      Detailed reporting of access by individual
      Scanned data can be mixed with electronic files

								
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