On our way to simplify and digitalize the due diligence process

Data Room & Due Diligence

Virtual data rooms have radically changed the way due diligence is performed. However, there is still a long way to go when it comes to simplifying and digitalizing the due diligence process.

1.November 2022
Written by Mari Nygaard

Since Mergers and Acquisitions (M&A) became common with the Great Merger Movement at the start of the 20th century, the due diligence process becomes a matter of course. With time, the scope of the due diligence process has greatly expanded, as have the type of processes of which the due diligence is applied. We have also added to the areas in which we include in the due diligence, the latest addition being Economic, Social and Government factors (ESG).

Whilst the due diligence process has developed for more than 100 years, the digitalization of this process started modestly in the 80’s with the introduction of the CD-ROM. For the last part of the 20th century physical data rooms were still widely used.

The emergence of virtual data rooms

In the early 2000s virtual data room (VDR) solutions started popping up and kick-started the digital transformation of the due diligence process.

20 years later, going through a due diligence process without a virtual data room in place is not an option. After the dot-com bubble burst, the digital transformation accelerated again and has since shaped the way we live our lives and how we do business. When it comes to the due diligence process, we have seen a myriad of service providers emerging, from more general document sharing platforms to highly specialized niche services.

With recent years privacy regulations, like the GDPR and an increased focus on security, we see that the demand for solutions like Admincontrol’s, that are especially designed to facilitate the due diligence process while at the same time adhering to the highest security standards, is growing.

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Due diligence on it’s way to digital transformation

Due diligence 3.0

We are going through a period of rapid digital transformation. There are endless possibilities, but one thing is clear: we are not done digitalizing the due diligence process.

In Admincontrol, we still hear about Excel-sheets being sent back and forth during Q&As, emails being sent with confidential information and about communication between teams on platforms with lower security levels than in a fully encrypted and secure data room.

The digital transformation of the due diligence process is far from complete. At Admincontrol we have a clear vision of how we, as a data room provider, can help drive the changes needed

So, now that we already can provide a full-function data room with the highest security levels, we are passionate about simplifying the due diligence process for our customers beyond todays standard. That means that we must further digitalize the process in a way that makes it easy for our customers to execute all dialogue and tasks related to the due diligence within the safe and secure data room platform.

To accomplish this, we have launched several new initiatives and are currently working on implementing more new functionalities.

4 initiatives by Admincontrol to further simplify and digitalize the due diligence process

Data rooms purchased and generated instantly

You may already have bought a data room via our webshop, which generates your data room instantly upon order. Soon you will also be able to manage your subscription, upgrade, or even buy a new portal directly from the data room.

Secure communication within the M&A team

In the beginning of 2020, we launched Secure Messaging. Secure Messaging is a messaging module within the data room which enables secure communication within each respective team. So for instance, as a buyer in the data room, I could use the annotations function to highlight text in a document that I am working on in the data room and then I could share my notes directly with my relevant buy side team members. The dialogue within each team can never be accessed by other teams in the data room.

Admincontrol’s Secure Messaging module ensures encrypted communication for the M&A team within the data room platform

AI tool for legal due diligence

Furthermore, we have teamed up with the Artificial Intelligence AI provider Luminance, to provide legal advisers with a fully secure and encrypted sync between Admincontrol and Luminance, so that they can use the Luminance AI tool in the legal due diligence.

Optimized data room folder structure in only a few simple steps

Due diligence preparations within the data room is further simplified with our brand-new feature called Folder Wizard.

This unique feature enables the data room administrator to build a new folder structure inside the data room in just a few minutes. We have best practice templates available, which have been created in cooperation with leading legal and financial advisors. The templates can be modified to suit your process. You can also create your own template from scratch, in this easy-to-use intuitive tool.


A simpler way for preparing and performing due diligence

These features are all steps in the direction of creating a simpler way of preparing for and performing due diligence. For Admincontrol, it does not stop here. In store for 2021 is a new unique feature that will represent a big leap towards our goal to digitalize and simplify the way that we work in data rooms.

With the speed of software development, who knows what we will be possible in ten, five or even one year from now? Time will tell, but at Admincontrol we will keep working to simplify due diligence though digitalization of every step of the process.

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