Why Modern M&A Requires a Virtual Data Room
A virtual data room is essential to modern M&A.The word “modern” is ubiquitous in pop culture today. Modern Family is on television and Modern Times might be the IPA of choice at your hip, local hangout. We’ve explained why virtual data rooms are hot. But what exactly do document storage and virtual data rooms have to do with your business’ next merger or acquisition?
Good thing you asked.
We, along with the rest of the business world, love a good acronym, and the letters M & A are screaming for a solid explanation. VDR for M&A, now that’s a hefty set of acronyms. If Virtual Data Rooms also stands for “Very Doable Relationships,” the ol’ M&A can now get a classy upgrade to something more fun too. While we understand that professionalism is important to you, having fun with words doesn’t make you less professional. Here’s why: Just as M&A’s can allow enterprises to grow, shrink, and change the nature of their business, a new acronym can expand your mind to impact your bottom line.
M&A can simultaneously stand for Mergers and Acquisitions and Money and Autonomy.
Look at how autonomous the guy in the above image looks. All he needs are striped socks and some circular graphs. Voila! Just like that, he’s ready to make money and he’s so very autonomous. Here’s why the modern M&A (and the modern, striped shirt wearing man) requires a virtual room:
1. Money is Evolving
Communications, especially those involved in the sensitive conduction of due diligence and M&A, occur in a “confidentiality bubble” where NDA’s get signed, and the overall flow of information restricts what’s outlined in the “paperwork,” aka digital documents.
And that’s the thing with words: “Money” and “paperwork” have taken on new meanings today, because of technology. Neither of them involves much paper these days. How do you keep track not just of the terminology, but your money?
You can start by replacing ABBA’s 1976 hit “Money, Money, Money” with the words “Crypto, Crypto, Crypto.” It may not have the same ring to it, but it’s the right word for the new world.
You already know that money is a medium of exchange. But did you know about the new kid on the block called cryptocurrency, whose entire foundation is decentralized? Cryptocurrency uses technology to secure its transactions and to verify the transfer of assets. While the traditional way to manage money is through old-school banks, the modern way to manage this new type of money is through a Blockchain wallet.
Caplinked has partnered with TransitNet to add an additional layer of security to enterprise blockchain transactions. Share documents, collaborate and close the deal without ever having to leave the safety of a virtual data room. Now that’s what I call modern.
Conducting any business transaction without a virtual data room today is like putting all of your paper money in the middle of a busy street in Times Square. You can trust that some people won’t pick up your dollar bills, but you can’t trust everyone. Good thing you’re savvy, and you know how to securely share files online.
Virtual data rooms allow you the ability to manage your digital transactions without worry. Plus, you can even store your files in a decentralized platform through Storj Labs, an alternative to centralized cloud storage.
The modern world requires new rules. And when you learn the new rules, you realize that…
2. Autonomy is Necessary
You don’t need banks or boardrooms to make money. The digital nature of the modern world gives the present-day businessperson unprecedented autonomy. Deals can be made anywhere from the coffee shop to the football stadium- there are no limits. You act independently and have the freedom to do what you want (like buy striped socks!) But how do you keep track of your digital documents (and quell your stripe addiction) when your business transactions happen all over the world?
You can either:
A) Buy more socks (always a good idea)
B) Check out a virtual data room that allows you to harness your data when you’re traveling all over the world?
C) All of the above
Modern Merges & Acquisitions don’t require you to fit into a boring box. With the right tools, you can travel the globe and seamlessly collaborate- without compromising security. In a world where you don’t know whether you’ll be in Berlin or Beijing, a Virtual Data Room enables you to securely share, protect, and track your business’s sensitive data.
Virtual Data Rooms improve your relationships and keep you sane. When you’re not worried about your documents, you can focus on the things that matter- your deals. Deal rooms for M&A allow you to share documents, collaborate, and track your deal from start to finish, wherever and whenever you choose. Now that’s what I call autonomy.
Caplinked is your source for all things mergers and acquisitions, like the cutting edge merging of blockchain and VDR technology to create the securest possible data transactions. Virtual data rooms are changing the way business is conducted- make sure you’re in the loop!