Affordable data room solution for private equity

solution for private equity

Permanent data maintenance is crucial, especially in volatile capital markets and restrictive financing environments. This article will analyze the role of the data room software for organizing private equity transactions and the most suitable software vendors.

Data room: optimize your private equity deals

Private equity is capital provided to private companies or investors. The allocated funds can develop new products and technologies, increase working capital, make acquisitions, or strengthen a company’s balance sheet. Institutional investors and the wealthy are often attracted to private equity investments through large university donations, pension plans, and family offices. Their money becomes a source of financing for high-risk enterprises in the early stages and plays an important role in the economy. Therefore, investors organize due diligence procedures to evaluate the prospects of the investment project. They use virtual data room solutions for efficient evaluation procedures and a cloud-based platform that ensures tools for secure data transmission and online collaboration. 

The digitization of the company’s paper warehouses is now total. At the same time, modern companies are already solving the problems of Big Data – the analysis and extraction of important information from a large volume of digitized documents. Thus, a virtual data room for private equity is a win-win solution for investors that can optimize most of the daily business workflows. 

The most suitable data room for the private equity sector

The most affordable data room vendors for arranging private equity transactions are:

  • iDeals
  • Ansarada 
  • SecureDocs
  • Digify
  • Citrix
  • DealRoom
  • Intralinks
  • Merill
  • SmartRoom
  • Clinked
  • Firmex.

Many customers carry out consulting projects before implementing the data room system, building software strategy several years ahead, and improving the processes of documentary interaction within the organization. In addition, large companies pay great attention to the scalability and fault tolerance of data room solutions when working in a geographically distributed environment, as well as the flexibility of systems when setting up specialized document-oriented processes specific to this particular organization.

The data room benefits from private capital transactions

This business software ensures the following fundamental benefits for investors:

  • –°onfidentiality and security

Ensuring the confidentiality and security of the relevant documents during the transaction process guarantees that a venture capital investment can be carried out successfully. For this purpose, the virtual data room is equipped with a sophisticated authorization concept. It ensures that only authorized persons have controlled access to transaction-relevant documents such as contracts, financial data, powers of attorney, reports, or documents on corporate actions. In the so-called view-only mode, investors are only authorized to view documents. Additional authorization regulates who can print or save which documents and when. It is also advantageous if the complex question and answer processes in virtual data rooms are handled in a structured manner using the integrated Question & Answer tool (Q&A). As a result, questions can be asked as they arise and promptly answered by the right – system-assigned – experts. It enables a lean and sustainable flow of communication between the parties involved.

  • Time and cost savings

In addition to confidentiality and security, the virtual data room is characterized above all by user-friendly handling and significant time and cost savings. The documents stored in the data room using the drag & drop method can be individually marked as “read,” “in progress,” or “checked” via the status functionality. Splitting the screen to view two documents in parallel is another user-friendly and time-saving feature. With the so-called split screen, two documents, such as the annual financial statements from this year and the previous year, can be compared directly on the screen. In conjunction with structured indexing, extensive search functions enable the desired documents to be found quickly.