Share, , Google Plus, Pinterest,


Posted in:

Mergers and Acquisitions – The Impact of Cloud Collaboration

The cloud is changing the way companies and individuals perceive online data management. You no longer need to upload a single document every time you want to send it via mail, or wonder if the recipient’s e-mail system will reject your message because of file size.

Secure online document sharing accelerates sensitive file distribution, and keeps you in control of who can access the information.

Businesses, especially those in regulated industries tend to have special security and privacy needs when it comes to cloud-based document sharing. Consider:

  • Banks
  • Pharmaceutical companies
  • Investment firms
  • Consultancies advising mergers and acquisitions
  • The clients of those consulting firms
  • Law firms and accounting practices

It’s natural these businesses won’t be satisfied with any public cloud service dedicated to handling the sensitive, potentially stock market-impacting files. Some businesses use common services like Google Drive, Dropbox or Microsoft OneDrive for Business just to share internal, less formal document exchanges.

These services are inexpensive and convenient, but they lack critical security controls which only Virtual Deal Rooms can provide. They also lack the ease of deploying private collaboration spaces which companies seek when acquiring, or being acquired.

Should We Just Switch to Paper Exchange?

Internal file sharing on your network or a private cloud is relatively simple. You can setup a file share server or collaboration site accessible by your employees. What happens when you need to share information with third parties on daily basis, outside your corporate firewall?

M&A (Merger and acquisitions) are delicate processes requiring constant communication between you and another business, and usually any number of interested, privileged third parties. The documents involved in these transactions usually go through many version cycles, and printing, faxing or modifying them can compromise the security of the transaction.

Is The Cloud the Right Choice for M&A?

M&A is a delicate process because your business needs to:

  • Share sensitive data securely
  • Adhere to compliance requirements like HIPAA, SOC 3 and SAS70 Type II
  • Set up deal rooms quickly for fast-breaking transactions
  • Facilitate due diligence by lawyers, business analysts and regulatory professionals
  • Apply watermarks to documents to prove the integrity of information
  • Ensure documents are presented in a context to all parties and their interests

The further question is what type of cloud solution is the right fit for handling the M&A process?

Some companies may choose a more “off the grid” approach, which can miss regulatory requirements, and subject the process to security breaches and data leakage to the press.

There were instances where entire databases were hacked from hospitals, retail chains, insurance providers and law offices due to ineffective security practices.

Virtual deal rooms provide the collaborative sharing opportunities the cloud offers, and at the same time creates a secure, powerful environment for conducting M&A deals.

Virtual Data Rooms Optimize the Cloud for M&A Transactions

Virtual Data Rooms are cloud services with increased levels of security and rigor. They may cost more on a price tag basis than other cloud file sharing systems, but apply controls which can save companies and investors tens of thousands to millions of dollars in fines or deal devaluation if files are compromised.

VDR’s offer strategic benefits like:

  • Accessibility on all modern browser-enabled devices
  • Security and digital rights controls on documents such as printing or emailing
  • Application of watermarks on documents
  • Flexibility of custom folder structuring and document metadata profiling
  • Opportunities to “view as” an external party, or to lock documents to IP addresses or computers to ensure confidentiality
  • The ability to share large documents, or batches of documents with a secure link
  • Advanced permissions to documents, folders and expiry of documents and permissions