Initial Public Offerings

This is How Data Rooms Can Help with a Biotech IPO

biotech ipo

The biotech industry is one of the largest single industries within the healthcare sector. Taking a biotech company public can, therefore, be an extremely rewarding process, with so much opportunity available. Of course, the IPO process, regardless of which sector it might fall under, is an exciting but tiresome one for all involved. The risk is great, but the potential gains for both you and your business’s longevity are well worth it. Being such an important process, you need to make sure you do it properly and securely. Here’s how using a virtual data room (VDR) can help you complete your biotech IPO securely, successfully and efficiently, leading to an extremely profitable time for you and your company.

biotech ipo

You will save time and money:

The IPO process can be an excessively costly and time-consuming one for your business. It’s essential for you to find some method to do it efficiently in terms of both time and money. This is where VDRs excel, as the features that they offer will help you cut your costs to a fraction of what they would be with the use of a physical data room, as well as inherently leading to faster decision-making and therefore greater efficiency. I say that VDRs “inherently” cut the time taken to make decisions because of what they are: an online repository of data that can be accessed from anywhere and at any time. When compared to their predecessor, the physical data room, you no longer need to have possible investors come in to your office to view data and perform their due diligence to determine whether they would like to invest in your company. Trying to achieve the same level of transparency with any other form of digital data sharing (i.e. emails or phone calls) would be near impossible.

Not only will you save huge amounts of time, the same reasons that make VDRs more efficient will also help you cut costs. You will save overheads on office space and storage for use in your IPO process, and you won’t have to pay to have your possible investors transported to your office space. Furthermore, you will save on other costs that are unavoidable when using a physical data room, such as printing, copying and stapling documents, paper files and folders, on-site security, and even salaries for those working to organize the data within the room. In an already resource intensive process, this increased time and cost efficiency will prove invaluable to you.

Planning for public analysis:

There is no avoiding the heavy scrutiny that your business’s financials will receive during your IPO process. The public must have some sort of access to your information if you expect them to invest in your company when you make your first share offerings. As such, presenting your financial information to the larger investors in the correct manner can lead to the success or failure of your IPO. Of course, you can’t be expected to open up your data room to the public, but if you can do it for those who will be buying large portions of your offerings, then there will be a greater chance of overall success. The best and easiest way to keep your financials in proper order is to stay on top of the organisation and management of the data from the very beginning of the process. This will lead to the later parts of your IPO running far smoother, meaning less stress for your team, and a greater reward. Using a VDR to do this will make it all that much easier for you due to the data organisation tools made available to you.

Data security:

The security of data in the IPO process for any biotech company is essential. When dealing with such confidential intellectual property that the biotech industry does deal with, it’s extremely important to not let any data leak to the public before the IPO process is complete. This could lead to your IPO failing entirely, so here’s how a VDR will keep your data as secure as possible. The data centres in which your data is stored are both digitally and physically secured. With 24/7 security personnel as well as backup generators and even backup servers, there is no real physical threat to your data. Multiple firewalls protect the servers from cyber-attack, and your data will be encrypted by the highest commercial-grade 256-bit encryption software at every step of the storage process. Your data will never be safer than when stored in a VDR.

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