Due Diligence: It’s in the Cloud!

Upon execution of the Letter of Intent (LOI), buyers and sellers kick-start the due diligence phase of the mergers and acquisitions (M&A) process. Due diligence, a most critical step in the M&A process, provides buyers the opportunity to confirm the seller’s financials, determine the risks, establish the potential benefits and understand the overall strategic fit. Successful transactions depend on a streamlined due diligence process; consequently, experienced M&A advisors, on behalf of the seller, will establish a well-organized Virtual Data Room (VDR) to serve as the conduit for sharing information and expediting the confirmatory process.  VDRs provide:

  • a secure environment to share sensitive data
  • the ability to manage the information exchange process
  • control over timing and accessibility
  • permission to print documents for review
  • email notifications to buyer’s counsel as documents are continually added during the process

The due diligence phase will always serve as a critical function of the M&A process. A seasoned M&A Team will be primed with the VDR long before the LOI is signed; ensuring a smooth and efficient process to the benefit of both parties privy to the transaction.