How Can Virtual Data Rooms Speed Up Deals for Legal Companies?
Date: 31 August 2017 Share on Twitter Share on Facebook
Legal companies, whether large or small, deal with masses of documents each month. Each trial, merger and acquisition or contract involves a significant amount of paperwork and companies can often be dealing with many cases at once. This means that organization of these documents is often the key to an efficient process. Virtual Data Room (VDR) is a useful tool which can help your firm do just that. Whether it’s sorting through documents, communicating about a case or transferring data between locations VDRs offer features that can speed up the process.
One of the main advantages of virtual data rooms, as opposed to the conventional physical data rooms, is that many people can work with the same documents at once. When dealing with a case firms often split up work between associates and partners but this can become tricky as physical documents have to be passed from person to person and can become disorganized or misplaced in the process. Emailing documents amongst employees also hinders productivity as they have to constantly search through their inboxes to find documents. Virtual data rooms allow documents to be well managed and organized so that all employees have access to the data they need at the click of a button without having to rely on others to pass information along. This leads to documents being compiled faster and allows deals to be made quicker.
Big firms also have to overcome the challenge of having multiple offices sometimes in different cities or countries. This can also hinder the pace of a case or deal. If your firm uses physical data rooms, to transfer data from one location to the next requires the copying and transporting of those documents from place to place. Transferring large amounts of information via email is an impractical solution as you have to split the data into small increments and send them individually. Virtual data rooms, however, can be accessed from anywhere with an internet connection. Meaning that the documents can be accessed at all your branches 24/7 cutting down on the loss of time.
The next feature of Virtual Data Room that can increase your firm’s productivity is the Q&A function. It allows increased speed of communication as well as reduces the chances of a time-costly misunderstanding taking place. It does this by allowing all of your communication to take place in one place and allowing your employees to avoid the time-consuming activity of sending emails back and forth to communicate. The Q&A also allows the discussion to be linked directly to the document or folder that it is about to avoid confusion and not have to attach the documents in question to an email.
During legal deals, documents exchange hands between numerous parties and it is important that they all have access to documents when they need it. A feature of VDRs that aid this process is the access control function. It allows the administrator of the Virtual Data Room to choose which files certain people or groups of people have access to. This means that it is not necessary to create multiple data rooms, one for each of the parties involved, but rather control which folders they have access to. It also holds true for more junior members of the firm who should not have the same access levels as senior partners
The superior organizational features of VDRs increase the efficiency of any process. This is because rather than having to search through mountains of paper or emails, the data can be organized into folders and are automatically added to an index, so they can easily be found. Search functions improve on this as they allow keywords or phrases to be found rather than just titles of documents so you can swiftly find exactly what you are looking for.
VDRs keep an audit of each user’s activity whilst in the data room. This becomes useful because the firm will know when a non-disclosure or negotiation contract has been downloaded and can follow up with the involved party accordingly. Managers can also keep track of how much work each member of their team is doing and if someone is not pulling their weight they can quickly be identified and the problem can be addressed.