The digitalization of all important business transactions has become commonplace. To form a common customer base, data repository, and control the operations, it is necessary to standardize and automate the working process. So, data room software will be a rational solution to this problem.

Due diligence – the decrease of the investment risks

Independent financial audit of investment projects is a necessary component of investment project management. If due diligence provides the investor with the necessary information to make a final decision on investing in a project or not, an independent financial audit makes it possible to identify on time new risks that were not relevant at the time of due diligence, to identify deviations of actual performance from planned and to determine the reasons for such deviations.

Due Diligence is used to give potential investors an idea of the company’s revenue, sales trends, capital needs, and more. Based on indicators of due diligence, it is possible to form an investment strategy, identify the weaknesses, activate possible hidden reserves, mobilize financial sources.

Virtual data room: secure collaboration between company and investor

One of the most important stages of the audit should be considered preparatory of the secure collaborative environment like virtual data room (VDR). It is a set of services that provides the creation, editing, differentiation of access rights, and distribution of files in computer networks while maintaining the ability to control them at the company level.

Following the vdrdienst.de, the VDR provides an opportunity for managers and contractors to manage tasks and projects, allowing them to track their own and team performance. Integrations with mail servers, instant messengers, and telephony make it possible to carry out the entire cycle of activities within projects in one window, while analytical tools help to receive status information and quickly respond to processes.

Data room software performs the following functions:

  • maintaining an up-to-date database of counterparties (clients, business partners);
  • the system stores complete information about sales and financial management and transaction history;
  • full automation of the company’s business transactions;
  • ensure proper paperwork;
  • employee tasks tracking and time management, automatic reporting on completed tasks;
  • improving the quality and efficiency of management staff (simplification of day-to-day operations such as preparing standard documents or sending emails);
  • high-quality adjustment of marketing tools.

Data room benefits: increasing productivity

The use of digital data room software has the following benefits for investors and sellers:

  • the single information system eliminates the stages of data reconciliation, as it is not necessary to transfer and compare information in different programs;
  • effective differentiation of access rights: information in the data rooms is protected. If you sent data to the “cloud”, then it will automatically save them and send copies to backup servers, which may be located in different countries and continents;
  • increasing the productivity of the enterprise: all cycles are accelerated, downtime is eliminated, the interaction between departments is uninterrupted, and labor processes are transparent;
  • improving the efficiency of management decisions made through access to complete and objective information in the data room database;
  • transparent control of personnel work, reduction of abuses, identification of discrepancies in “real-time mode”.
  • the use of an electronic data room archive eliminates the need to create a fund for the use of archival documents since an electronic copy of a document can be issued upon request at any time.
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