There are many ways attorneys can make use of a virtual data room in their practice, including efficiently managing and storing data, securely transferring large volumes of documents outside the firewall and much more.
As I’ve discussed in the past, online collaboration platforms generally allow for far more secure communication than email and offer attorneys a secure online location for collaboration.
In the wake of the recession, business owners are seeking ways to repair damage. Employee Stock Ownership Plans (“ESOPs”) are a practical resource when attempting to convert privately owned company stock into assets that are more liquid.
While the M&A market continues to recover, business owners are utilizing Employee Stock Ownership Plans (“ESOPs”) to satisfy the need to convert some of their illiquid privately held company stock into cash and other liquid investments. The ESOP is attractive due to significant tax savings to the owner and company, flexible deal structures and speed with which a transaction can be completed. With higher capital gains taxes looming in 2011, now is a great time to evaluate this liquidity strategy.
The recent advent of the kindle, the iPad and other paper eliminating devices serves as an interesting marker of just how archaic a practice it is to produce physical books for an industry as fast paced as M&A. Using a virtual data room to manage this process can accelerate the transaction process from the beginning, help manage costs and provide security measures that often fall through the cracks
Most of Firmex’s clients are now using the internet to distribute seller’s books or confidential information memorandums when managing a sell-side M&A transaction. However, there are firms that are continuing to create physical books, which can range from 50 to 200 pages. These books are typically distributed to a large number of potential buyers, particularly if an advisory firm routinely markets transactions to a database of private equity firms.
The first quarter of 2010 started off slower than expected. For the companies that are performing well, there is an active market. Companies that are struggling are seeing less interest and lower valuations.
After the 2009 recession, expectations were high for renewed M&A activity coming into 2010. As Michael Rosendahl of PCE Investment Bankers, reports, Q1 2010 numbers were somewhat of a disappointment. Deal volume was highest for distressed companies and companies performing strongly. Companies that fall in between these two categories are having difficulty finding an acquirer. In today’s post, Rosendahl points out that while results were below expectations, the consensus is for an uptick in activity as the year progresses since strategic (corporate) and financial investors (private equity groups) are actively searching for acquisitions.
Digital Rights Management, commonly known as DRM, refers to the ability to protect various types of electronic media. In recent years, DRM technology has become topical because of its role in protecting digital music and movies that make their way online. However, DRM also plays an important role in the financial transaction world offering security to those who share documents online in Virtual Data Rooms.
Digital Rights Management, commonly known as DRM, refers to the ability to protect various types of electronic media. In recent years, DRM technology has become topical because of its role in protecting digital music and movies that make their way online. However, DRM also plays an important role in the financial transaction world offering security to those who share documents online in Virtual Data Rooms.
An important consideration in the deployment of a Virtual Data Room is the question of who will serve as the gatekeeper to the Virtual Deal Room, determining what information is appropriate for posting and what level of security and access to assign to such information.
The use of a virtual deal room (“VDR”) has become commonplace in modern merger and acquisition practice, replacing the formerly prevalent document room. The advantages of a VDR include reduced cost; reduced security concerns; accessibility to multiple parties simultaneously and 24/7; reduction in actual deal time; and an electronic data trail establishing who saw what and when.
Firmex’s unlimited use virtual data rooms expand the use investment banks have for their deal rooms exponentially; hasten deals to close and help avoid unnecessary risk.
In any deal, time is risk. The longer it takes to close a deal, the greater the potential for the transaction to get derailed. Being prepared ahead of time is one way to avoid time delays and risk.
A technical overview of recent data rooms and the speed enhancements for large transactions that are saving our clients considerable time and money when managing transactions with thousands of documents.
Because data room performance is important to our clients, we recently released the first wave of our new software architecture to address the growing demands of our customers.
The Due Diligence M&A process involves buyers and sellers of businesses connecting with other buyers and sellers to complete transactions. In today’s market place, the process of Due Diligence has been streamlined by collecting the information in digital format and sharing it online in a virtual data room.
In the business world, Due Diligence refers to the act of investigating information related to people and businesses. This can be on a voluntary basis as in conducting a background check on a future employee, or it can be a legal requirement as in investigating the legal issues around a corporate takeover bid. However, the most common type of Due Diligence performed in business typically relates to that which is performed in relation to a merger or acquisition (M&A). Read more…
Over 250 financial and legal advisory firms are using their own, privately branded Firmex data rooms. Firmex-powered deal activity was up 255% in Q1 2009 versus a 10% decline in Q4 2008. According to Firmex’s M&A advisory clients, the increase is a result of sellers bringing deals back to market. The majority of the increase occurred late in Q1 2009, and the trend is continuing into Q2 2009.
The Evolution of Transaction Document Management
This diagram illustrates the current ways of executing a deal.
