{"id":51286,"date":"2024-04-19T10:34:14","date_gmt":"2024-04-19T09:34:14","guid":{"rendered":"https:\/\/dataconomy.ru\/?p=51286"},"modified":"2024-04-19T10:34:14","modified_gmt":"2024-04-19T09:34:14","slug":"the-art-of-deal-making-leveraging-virtual-data-rooms-for-successful-mergers-and-acquisitions","status":"publish","type":"post","link":"https:\/\/dataconomy.ru\/2024\/04\/19\/the-art-of-deal-making-leveraging-virtual-data-rooms-for-successful-mergers-and-acquisitions\/","title":{"rendered":"The art of deal-making: Leveraging virtual data rooms for successful mergers and acquisitions"},"content":{"rendered":"

Did you know that every year, companies spend more than $4 trillion on M&A activities, but the failure percentage is still 70%-90%?<\/a> What\u2019s more, the three common reasons behind M&A failures include poor communication, cultural differences, and value destruction.<\/p>\n

Apart from that, other in-process reasons trigger a failed M&A transaction. Poor or inefficient data management, prolonged due diligence, and lack of data security will lead to unsuccessful M&A deals.<\/p>\n

Dealmakers can avoid all this by using efficiency-boosting M&A solutions like data room software. Data rooms minimize communication hurdles, streamline secure data management, and reduce the time needed for due diligence.<\/p>\n

Here is everything you need to know about virtual data rooms and their benefits in mergers and acquisitions.<\/p>\n

What is virtual data room software?<\/h2>\n

In simplest words, virtual dataroom software is a digital data management and storage platform used to store, share, access, and manage business data.<\/p>\n

Broadly explained, virtual data rooms are advanced virtual document repositories used to automate the data management process in complex business deals such as acquisitions, mergers, fundraising, initial public offerings, clinical trials, etc.<\/p>\n

Online data rooms are more than just ordinary cloud-based data storage tools. They come with a wide range of communication, data analytics, meeting management, and project management tools. That is the reason why they are common in almost every business sector, including healthcare, IT, telecommunications, banking and finance, and oil and energy.<\/p>\n

Top virtual data room benefits<\/h2>\n

Here are the top reasons why virtual data rooms should be part of any acquisitions and mergers strategy<\/a>.<\/p>\n

1. Premium document security<\/h3>\n

Modern-day virtual data room providers give data room users next-level control over the data in the VDRs. For example, the VDR administration can:<\/p>\n