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What Makes a Modern Virtual Data Room?

Modern virtual data room (VDR) technology doesn’t just streamline due diligence at the beginning of a complex transaction—it also sets the stage for a more efficient M&A process all the way through post-closing. This expanded role for VDRs supports a more holistic advisory approach and, by extension, a better end-to-end client experience. It also demands a new, more multifaceted way of thinking about, and selecting, a VDR partner.

A Virtual Data Room Should be a Part of a Full Deal Solution, Not a Siloed Product  

Historically, data rooms were limited in the issue that they addressed - helping with due diligence.  And most people thought the leading offerings were more or less the same.  But merger parties should now expect that a data room is part of an integrated and comprehensive solution that gives them a better way to manage the deal as a whole rather than simply addressing a limited stage and aspect of the transaction.

Rather than settling for this long-standing status quo, modern deal parties are looking beyond what is merely standard and toward what best supports modern deal-making at all stages. They are seeking a solution that provides the expected and necessary capabilities of a VDR while also working as part of a complete M&A system to help optimize the entire deal process. Features like transparent, surprise-free pricing and the option to keep files available on the cloud even after closing (for no additional fee) have gone from nice-to-haves to essentials when it comes to selecting a VDR that truly delivers.

The Importance of Full Deal Lifecycle Support 

Time is money. It’s a cliché—but one that applies quite literally to the M&A process. The slowdowns that come from coordinating with multiple point-solution vendors across the many stages of a transaction can add significant costs for deal parties over the lifecycle of a deal. Furthermore, not having a central repository for all deal information documents and data often creates confusion and frustration if, for example, diligence materials are in the data room, documents are in the legal files and important dates and data have to be tracked separately. When questions or issues inevitably arise at some point after closing, it can be hard to quickly find answers. That’s why having a single expert partner in place from the beginning of a transaction to the very end is important. It helps eliminate expensive process inefficiencies, redundancies, and gaps that often plague complex M&A.

Modern deal parties are increasingly demanding a VDR partner that can provide full deal lifecycle support. They want and need a provider with the technology, service levels, and expertise to streamline stockholder solicitation, payments, and escrows, and to protect shareholder interests as a professional shareholder rep after closing—eliminating the wasted time and money that comes from switching from provider to provider as a deal progresses. 

The Need for Comprehensive Functionality  

As a core component of a complete M&A system, a modern VDR delivers functionality that goes beyond what many deal parties and advisors have long considered complete. Must-have features include seamless integration with a private client portal and other technologies, advanced customizations based on specific processes and preferences, time-saving batch transfers, detailed activity tracking and flexible user permissions, secure data previews, and the ability to scale up and down with speed as needs evolve.

Especially essential is the ability to maintain files in one centralized location for all pre- and post-closing needs. Having files available at your fingertips even after the deal closes is invaluable: you should have the option to decide how long your deal data remains in the cloud, eliminating the need for thumb drives. Look for a provider that includes this feature in their cost structure to avoid additional fees and unwelcome surprises down the road.

The Power of a Partner that Supports Efficiency from Pitchbook Through Post-Closing 

A modern VDR provider ultimately delivers much more than a VDR. They act as a true partner with the experience, expertise, and holistic technology capabilities to maximize efficiency in the deal process all the way to closing—and even beyond. The results? Improved client experiences and more streamlined transactions, supporting greater peace of mind and superior financial outcomes for everyone involved.

Jessica Barnett Glaser

Executive Director, Head of Product tel:312-404-5473

Jessica is an executive director and head of product for SRS Acquiom. She leads a team responsible for managing the strategic and tactical direction of our portfolio of products through the entire product lifecycle. She ensures the products align to the corporate vision, provide the best possible client experience, and drive corporate growth.

Before joining SRS Acquiom, Jessica was a member of the Product team at Envestnet and managed the Investor experience. She led integrating technology from the company’s largest acquisition, Yodlee, into Envestnet’s Advisor and Investor Portals.

Jessica has been a board member of JA Engage, the junior board for Junior Achievement Rocky Mountain, since 2017. She received her B.S. in Finance from DePaul University, Driehaus College of Business.

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