Virtual Data Rooms During the COVID-19 Pandemic

Despite the market turmoil caused by the coronavirus pandemic, the virtual data room industry has been seeing some notable changes in the past few months. Since January 2020, there has been a considerable increase in the number of new projects opened in data rooms. Like other VDR Providers, Vault Rooms is reporting a 17% increase year-over-year in new data rooms for M&A and fundraising projects.

Companies across industries are setting up virtual data rooms to foster effective communication and collaboration in eager anticipation of the increase in M&A transactions, asset sales, and fundraising activities that are expected to happen as soon as the market starts to stabilize. In addition to a lot of data rooms being opened to facilitate documentation and collaboration in due diligence for M&A, IPO, refinancing or bankruptcy, there has also been an uptick in the number of unsolicited offers by buyers looking to make strategic acquisitions.

Maintaining Momentum & Being Asset-Ready

Companies are also choosing to use virtual data rooms to maintain momentum in their business operations by securely storing and sharing files among dispersed employees during the crisis. Vault Rooms has published an article on best practices companies can implement in Virtual Meetings to effectively weather the COVID-19 pandemic.

In industries that have been severely impacted by the spread of COVID-19 such as airlines, hotels, oil & gas, travel, and retail, companies are recognizing the need to be extra careful and are ensuring that they have data rooms in place to secure their business-critical information. Many corporations have realized the importance of being proactively ‘asset-ready’ for whatever circumstances might come their way.

The Inevitable Bounce back

Despite the seemingly dire and unpredictable situation, financial experts/authorities across the country are convinced that the volatility will eventually come to an end and the deal market will come roaring back. “It’s taken a big hit but it’s going to all bounce back and it’s going to bounce back very big at the right time,” Trump said of the stock market during remarks to the press at the White House in mid-March. M&A and Fundraising activity will have the same type of bounce back.

About Vault Rooms

For more than 13 years, Vault Rooms has been an industry-leading cloud-based virtual data room provider, proudly facilitating tens of thousands of global M&A transactions across a wide range of industries. Business brokers, investment bankers, accountants, attorneys, private equity firms, and banks can safely collect, organize, share and track business-critical
documents on the Vault Rooms platform 24/7/365.

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