Right2Data provides eDataroom service for various type of uses.
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Due diligence (DD) by potential investors during equity funding
Potential investors who show interest in investing in the company need to conduct due
diligence on the company. The investor would like to have all possible information about the
company including list of customers, intellectual properties, financial position of the
company, access to key contracts of the company etc. The company looking for investors
would like to guard against risk of potential investors stealing the information and then not
investing in the company. In such situation they can give limited read only rights to the
potential investors to ensure they are not able to copy or print any important data of the
company.
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Due diligence by lenders / bankers during debt funding
Similar to equity fund raise, in debt fund raise also a company approaches many banks,
NBFCs and other lenders. Here also one or few banks actually end up lending money, but the
company end up sharing the documents with all the potential lenders during due diligence.
Not only lenders but also their employees including accountants, lawyers etc. get access to
the documents and it substantially increases risk of leakage of confidential information. VDR
protects against such risks.
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Potential bidders in an eAuction
In an eAuction, the seller needs to share the details of the goods under auction with the
potential bidders. The more the data seller discloses, the perceived risk is lower for the
buyer and chances of getting better price increases. However, more data seller shares, risk
of leakage and misuse increase.
Only one person ends up winning the bid, however, the seller ends up sharing the
confidential information with all the bidders which not only increases the risk but can also
impact the value of the property under auction. Sharing information via eDataroom protects
against such risks.
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Liquidation or eAuction of assets under Insolvency and Bankruptcy Code (IBC)
Under IBC, the insolvency professional or the liquidator is entrusted with the responsibility
of realising the best possible value for the company so that outstanding creditors can be
paid. To realise best value the resolution professional or the liquidator must approach many
companies and several potential buyers / investors. The potential buyers have to do a due
diligence on the company and its assets to be able to decide on the value. Many of these
potential buyers can be competitors of the company or can leak confidential information.
eDataroom ensure that no confidential information is leaked.
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Due diligence by a company during mergers and acquisitions
During Mergers and Acquisitions, the company has to share lot of confidential documents
with competitors who might be potential acquirers. There is no guarantee that the deal with
go the full distance and hence it is advisable for the company to protect itself by sharing the
information with competitors via data room so that they can maintain reasonable control on
the content copied by the competitors.
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Sharing of script by a writer with potential publishers
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Sharing of portfolio by an upcoming model
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Sharing of designs by a designer
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Sharing of startup business details by a founder with potential angel investors
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Employee sharing his profile and experience details with potential employer
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During Intellectual property (IP) related discussions
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Sharing of design or other ideas for approval by an architect / designer / writer / with
customer where payment is pending
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Sharing of property documents with potential buyer
