How Data Rooms Can Be Helpful for Biotech IPOsAuthor: Lauren Hawells
Your company’s initial public offering (IPO) is an exciting and important time in any business’s life. The biotech industry is one of the largest within the healthcare sector. Taking your biotech company public can, therefore, be a very lucrative process for you. As for any company in any sector, your IPO is a long and resource heavy process, and will require every ounce of your energy. It’s important for you to find a way to keep your business’s data secure, while still being able to share it with major investors. Not only will finding an efficient method of doing so help your business’s prospects in the long run, but it will make the public offering job much easier on you too. Here’s how using a virtual data room (VDR) will help smoothing the IPO process for your business.
Financial planning and public analysis
The IPO process will lead to your business’s financials being heavily scrutinized by multiple parties. How you present your information to those parties and how efficient you are in doing so can mean the difference between your IPO’s success or failure. As a result, you should start your planning for this well in advance. This entails keeping detailed reports of your financial history, so that by the time you make your public offerings, the whole process will be much smoother. The organisation, and subsequent analysis, of your data will obviously run far more efficiently if you manage it all properly right from the start. Using a VDR to aid in this could prove invaluable to you and your business. The features offered by these online data rooms allow you to keep all of your data secure, in good order and in one place, ready to be viewed by outside eyes.
Taking your business public can be costly and time consuming, but doing it without the proper tools can make it even more so. The overhead costs associated with physical data rooms, on-site security, paper files and folders, as well as copying, printing and stapling documents, will be cut as you won’t need to do any of them. Furthermore, you will not have to pay for the multiple teams and services that are required in sharing your documents with the necessary parties in a secure manner (i.e. lawyers, couriers, accountants etc.).
Having access to all of your documents from anywhere and at any time means that the overall efficiency of your IPO process will be greatly improved. Since you won’t have to fly potential investors in to your physical data room, you will save both money and time, as the faster transfer of data will lead to faster decision making. Not only will the transaction time be cut, but other time consuming processes such as due diligence will be but a formality. Trying to achieve the same level of transparency via phone calls or email would be practically impossible, as they do not allow for the same security and efficiency of data sharing that VDRs offer.
One of the key characteristics of virtual data rooms is that they offer greater security than any other form of digital data sharing and storage. In the case of biotech companies, you may be dealing with potentially dangerous products and highly confidential intellectual properties, so security is of the utmost importance in your IPO process. VDR solutions offer varying levels of physical and digital security, all of which are designed to give you 24/7 access to your data room as well as complete control over who views your data. Your data will be encrypted with the best commercial-grade 256-bit encryption software available, and will be stored in servers protected by multiple firewalls that prevent any foreign intrusion.
As for the physical protection of the data centers that house your information, VDR companies use security cameras and experienced security personnel to watch the servers at all time. On top of this, all of the top centers adhere to the strictest disaster regulations. This means that they have backup energy in the case of a power outage and backup servers that will run in the severe case that the original servers cannot. Your data will always be accessible and secure, which will be extremely important to you in the fast moving IPO process.