The Expansion of Virtual Data Rooms in M&A

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How to Expand Virtual data rooms in M&A?

Around the world, M&A deals are used to increase shareholder value by achieving synergies on economies of scale. They serve as a means of growth and diversification of activities, entering new markets, attracting new customers, access to new resources, and gaining unique competitive advantages of the best data rooms. At the same time, having an unconditional potential for increasing shareholder value, the success of transactions is not at all guaranteed: according to an international study of the global market for mergers and acquisitions.

According to many experts, the reason for unsuccessful transactions is insufficient attention to due diligence. Subject due diligence should be aimed primarily at confirming the strategic rationale for the transaction and the assumptions regarding the value creation as a result. If these assumptions are proven to be correct, due diligence may include a broader range of questions regarding the acquiree’s risks.

Planning the structure of the transaction is of great importance from a tax point of view, as it enables all parties to get the desired result. Information space (infosphere) is a sphere of human activity associated with the creation, transformation, and consumption of information and includes:

  • individual and public consciousness;
  • information resources, that is, information infrastructure (a complex of organizational structures, hardware, software, and other support for the formation, storage, processing, and transmission of information);
  • as well as the information itself and its flows.

Post-merger Integration Stage in M&A

The dynamics of the development of the modern world has shown the ineffectiveness of the form of education that has developed in the 20th century for current tasks and revealed the demand not only of the economy, but also of society for new forms of education and, above all, continuous education or “education throughout life”, which allows a person to remain professionally in demand with relevant skills for as long as possible. In this regard, the ability to independently build, plan and design their professional development and, accordingly, assume, determine, set their own, individual educational trajectory (IET) acquires value.

To understand if data rooms implementation is justified, consider the following:

  • Is the budget sufficient to implement the required hardware and software?
  • Are there costly problems that cannot be solved with CAD, DMU, or other visualization tools?
  • Are significant changes to the product development process possible?
  • Is cross-department collaboration (design, development, production, marketing) and global collaboration acceptable to take full advantage of the virtual reality system?
  • Is the implementation cost acceptable, not only for the purchase of software and hardware, but also for the time, effort, and resources between the acquisition and the start of the return on investment?
  • Can you single out at least one person who could lead the implementation of virtual reality, training, data management, and applications?

This myth applies to any technology. But it’s risky to do nothing when product complexity rises and global collaboration is needed, time to market is shorter, and the cost of solving design problems continues to rise. The software is unlikely to get cheaper, but it will be able to support a wider range of available hardware, such as head-mounted displays, power walls, and interactive input devices. The cost of computing resources will also decline as new developments emerge, increasingly cheaper central processing units; virtualized servers and workstations; and a more efficient algorithm for processing big data.