Articles on: Best Practices

Use Case: The Seller or Target Wants to Use Their Own VDR

In this comprehensive guide, we'll explore why DealRoom stands out as an excellent choice for managing deals in a unified platform. Additionally, we'll delve into two options for seamlessly integrating DealRoom even if the seller/target prefers their own Virtual Data Room (VDR).

Benefits of Utilizing DealRoom



DealRoom offers a range of features that distinguish it, accelerating the deal-closing process:
Centralized Communication: DealRoom consolidates all internal team communication in one easily accessible location.
The VDR Functionality: While the external party may have their VDR, DealRoom can serve as a secure repository for storing all relevant documents.
Precise Permissions: Maintain granular control over data access and communication, enhancing overall security.
Project Management Software: Leverage DealRoom's robust project management features to create requests, assign tasks to team members, and set reminders for upcoming due dates.
Comprehensive Reporting: Track the progress of requests, monitor data room activity, and stay informed about all DealRoom interactions with detailed reports.
Integration Readiness: DealRoom's integration capabilities enable the integration team to commence work sooner, providing greater visibility and collaboration, especially towards the end of the due diligence process.
Request Activity Tracking: Keep a detailed record of all past activities and communications associated with each request, ensuring up-to-date information and preventing any oversight.

Is the Target or Seller hesitant about using DealRoom?



If the target or seller is hesitant, especially if the deal is banker-led, consider conveying the following benefits to encourage their adoption:
Time Efficiency: Clients have reported a "Reduction of at least 10% of time in tracking and file sharing."
Enhanced Collaboration: Clients have described DealRoom as an "Easy-to-use, secure space to collaborate with counterparties for diligence and pre-close planning." Enhanced permission controls allow you to manage the level of collaboration.
Security Measures: DealRoom has robust security features, ensuring the safety of sensitive information, with strict protocols and varied levels of access controls.
Saved Costs: Some clients have reported that DealRoom "Eliminated $5K+ cost per deal in data management (VDR)."

Note: If the seller is worried about putting their data in the buyers DealRoom if transaction doesn't get completed, the buyer can do a cease and desist.

By presenting these advantages, you can effectively communicate the value of using DealRoom internally, fostering quicker onboarding and facilitating a more streamlined deal management process.

Problems Solved by Using DealRoom to Manage the Sellers Data



No longer need to send files back and forth over email
No more manual tracking and reporting
No more storing information in many different places
No more missed due dates or manual reminding
No more communication lost in email threads
No more training on different software tools (just one!)
No more extra costs for extra VDRs, pay-by-page VDRs, or extra users


Options for DealRoom with a Seller VDR



In the case where they still insist on using their own Virtual Data Room (VDR), there are still significant advantages to using DealRoom for internal processes, due diligence, and streamlined communication.

Option 1: Use DealRoom as an Internal SharePoint and Project Management Tool



DealRoom can be a valuable tool for internal processes and streamlined communication:
Assign one person or a small team, such as the head of corporate development, to interact with the sell-side banker and seller data room.
The designated corporate development member can download information from the seller data room and upload the documents into DealRoom for their internal team to review.
This allows for better diligence management internally for the corporate development team by having all internal communication and documents for the transaction live in DealRoom.
This approach is a common and effective use case for many of our clients.

Benefits: All documents, communication, and reporting can be managed in one place and in real-time, facilitating a quick evaluation of the target company.



This option allows easy access of the seller's documents within DealRoom without having to download and reupload:
Invite the banker and sell-side parties into DealRoom to update requests (excel tracker) and view responses from your team.
Fulfill requests by placing links to where those documents are located in the seller's VDR in the Description of the Request.
If the banker cannot log in, the corporate development person can link the documents for the internal team to reference.

Benefits: Everyone works off the same request lists in DealRoom, offering enhanced functionality with due dates, statuses, reporting, labels, private comments, assignees, communication, and collaboration.

What DealRoom Has That Excel Trackers Do NOT


While Excel trackers have their merits, DealRoom surpasses them in various aspects, providing a more comprehensive and user-friendly deal management solution:
Real-time Collaboration: DealRoom facilitates real-time collaboration among team members, fostering a dynamic and interactive environment that Excel trackers lack.
Automation of Tasks: Unlike static Excel sheets, DealRoom automates task management, providing notifications and reminders for impending deadlines, reducing manual follow-up efforts.
Granular Permissions: DealRoom offers precise control over permissions, allowing you to manage who can view, edit, or communicate within the platform. Excel trackers lack this level of security.
Detailed Audit Trail: DealRoom maintains a meticulous audit trail, tracking all user activities and changes, ensuring transparency and accountability. Excel sheets lack this built-in auditing feature.
Integrated Communication: Communication within DealRoom is seamlessly integrated with the deal process, enabling contextual discussions and comments directly on relevant tasks and documents. Excel trackers rely on external communication channels.
Customizable Dashboards and Reports: DealRoom provides customizable dashboards and reports, offering a bird's-eye view of the deal's progress. Excel trackers often require manual compilation for reporting purposes.

By recognizing and leveraging these distinct features, DealRoom proves to be a superior choice for efficient and transparent deal management compared to traditional Excel trackers.

If you have any questions or concerns, please don't hesitate to reach out to our support team. We're here to help!

Updated on: 13/12/2023

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