How to Transfer Data When You Acquire a Company
Today’s business landscape is rapidly changing. Mergers and acquisitions are the order of the day as companies expand and acquire smaller businesses or larger companies merge with equally large partners to form conglomerates. With the mergers and acquisitions come the transfer of assets, personnel, and consumer and client data.
Data Migration as a Sensitive Legal Undertaking
The transfer of knowledge and data migration after an acquisition is a delicate legal procedure that must be followed through with tact. The need for heightened consumer protection was highlighted in a 2018 article in respected tech magazine TechCrunch. After Facebook recently acquired WhatsApp, the UK’s Information Commissioners Office recently warned the company that they were obligated to continue upholding the same strict standards on consumer data that WhatsApp adhered to.
Incidentally, the consumer data protection standards of WhatsApp were significantly higher than Facebook, the acquiring company. Therefore, this imposes an obligation on the acquiring company to continue upholding the same data protection standards that the acquired company had.
The Value of VDRs in Mergers and Acquisitions
Intellectual property, knowledge transfer and data migration between companies is a complex legal undertaking. One needs to engage the services of licensed professionals with the requisite experience and skill on data migration. With the advent of technology and the digital age, data storage, and company files have been transferred from physical storage rooms to virtual data rooms.
The value of engaging a skilled IT expert to manage the data transfer and migration cannot be taken lightly. A virtual The process of mergers and acquisitions is aided by setting up virtual data rooms (VDR). These digital storage spaces consist of sensitive information like personnel information, shareholder data, business deals, intellectual property, and even consumer data. More importantly, they allow the acquiring company to get the acquired company’s relevant data in a secure and controlled method.
VDRs, therefore, dispense with the need to have physical storage or room with numerous rows of company files and records. A strong VDR with strong security measures is an invaluable tool in the world of business mergers and acquisitions. They are accessible at all hours of the day, meaning that corporate information and data can be accessed at will and business decisions made with speed and expediency. There is a real need to preserve and protect the integrity of the sensitive information contained in these rooms.
It is common practice for an acquiring company to perform due diligence on the company it hopes to acquire by simply going through the data and info contained in the VDR. The acquiring company may then peruse these files and records before making an offer. Whenever you acquire a company, you must conduct due diligence to make an informed purchase. Typically, the business or company being acquired will set up a virtual data room with all the relevant documentation.
The data involved is sensitive as it may contain copyright information or even trade secrets. Therefore the value of keeping them safe and secure against data breaches cannot be gainsaid. The VDR is a digital warehouse of sorts. However, in contrast to other storage facilities, the information released is done in a controlled manner. One may elect to allow access to all documents or just a small section on them.
Advantages of VDRs over Traditional Storage Spaces
VDRs allow for certain advantages that physical storage rooms lack. For one, you can track all those who have visited the VDR. Also, one can determine the length of time each visitor to the VDR spent. This is invaluable information in gauging the amount of interest a potential acquiring party has on your business. They are also safer and cheaper to run.
Why You Should Engage an IT Expert
With the backing of the right IT firm to handle your VDR needs, one can focus on more important and delicate tasks.They range from Google to Comcast. All said VDRs are an indispensable and integral part of mergers and acquisitions. Having the right partner at your corner to handle all the technical details of data storage and security as you focus on the deal’s main elements is invaluable.