As you might be aware, DealMarket has joined forces with another next generation tech firm, Drooms. The pioneer on the virtual data room market acquired DealMarket at the start of the year. So, what does the partnership mean for investors here at DealMarket? The short answer is: enhanced investment lifecycle processes with the help of two smart tools.
Drooms in a nutshell
Drooms started in 2001 with two M&A and legal experts setting up their first data room. The focus from the start was creating a digital space for deal making and document management. Although the company started as a provider of physical data rooms, the goal from the start was to completely revolutionise and digitise the process – Drooms has been at the centre of making business transactions and partnerships more online-focused. The benefits of digitising the processes has been understood and fully appreciated in the Drooms team. The virtual data room Drooms NXG is the result of the two-year effort of this team of more than 100 people.
Since both companies share the vision of an improved, faster and more transparent deal making, the partnership is hoped to help clients enjoy these same benefits.
Drooms NXG can help enhance your investment lifecycle processes in different ways:
Deal making is always a complex process. DealMarket Deal Flow makes the investment project less complex by allowing information and data storage. You can set up how you view deals, find them and manage them throughout the deal making process. Also, you can manage your investment process step by step with functionalities made for better organisation, such as, for instance, task management and follow-up features.
Now, what increases the complexity is often the finalisation process. More specifically, the due diligence process can add its difficulties and drag the investment process on. With Drooms, the documentation and the Q&A can all happen on their M&A data room. This saves time since you don’t need to send documents back and forth or upload them to several platforms – thereby also keeping the information under your control. Speed is of the essence when it comes to deal making – too often investments and mergers can fall through simply because the process took too long to finish. The Instant Access Technology Drooms uses guarantees documents can be processed and accessed without unnecessary delay in the process.
In addition, thanks to the artificial intelligence and machine learning technology built into Drooms NXG, you can analyse the content of your data room – and learn from the findings.
Overall, the addition of Drooms helps you with the latter stages of the investment cycle. While Deal Flow helped you manage your deals, Drooms NXG boosts the due diligence process.
Strengthening due diligence
So, let’s examine how Drooms can strengthen due diligence. Drooms’ data room can be used for a number of deals ranging from real estate to M&A activity. The data room also allows index allocation, which makes accessing and managing the documentation more straightforward.
If you’re looking to buy a startup and the business is using Drooms to store their communication, you can immediately start the process of due diligence. Access to documentation will be transparent and all the files reviewed and used will be included in the documentation needed for the deal to go through according to the law. The data rooms create a clear and strong audit trail, which means you can work with transparency.
The tool can, therefore, also boost communication between the buy-side and the sell-side. Drooms’ Q&A process can help set up intuitive workflows for handling questions on both sides. Also, it can make it easier to manage different bidders within the same deal, as Drooms NXG allows you to easily define user roles without compromising the information flows.
For investors, Drooms NXG can offer benefits in the future. You might use a different platform in the request of the seller when you invest in a business. But once you are ready to make a sale, dealing on Drooms while also using the Deal Flow tool can be beneficial.
Overall, the partnership has the potential to enhance and, more importantly, expand the investing lifecycle. It could have the potential to open doors for new deals and business ventures for investors on our platform – and maximising the profits made with each sale.
Try Drooms NXG free now. We believe strongly that Drooms can provide additional benefits to our investors and help businesses take advantage of digitisation.