Virtual Data Rooms for Private Placement

Virtual Data Rooms for Private Placement

 

A Docutone DataRoom is more remarkable than mere data. In complex transactions, such as private placements, distinctive software and processes can even point out who the main players are.

In May 2018, Singapore logistics company Mapletree Logisitics Trust raised over SGD $200 million selling private placement shares with proceeds funding the acquisition of logistics properties in China. Such a complex transaction would have presented a number of challenges, not least of which is how to balance practical efficiencies with transparency and security. Here, we take a look at some of Docutone’s best practices.

 

VDR case study in a private placement

Initial assessment: Financing options may include private placements, for which analysts have to review large volumes of documents. The VDR set-up helps you to collate and share this data with specific users. A company seeking financing uploads documents into indexed folders. Data is safely encrypted and managers can track user-engagement to ensure that their analysts are on the mark with due diligence.

Marketing a deal: If a private placement is preferred, an information memorandum is prepared for potential investors. These could well be competitors, which requires extra care when sharing information. A private equity firm using a VDR would present a ‘key’ to potential investors to review documents. The VDR tracks user engagement and can run reports on the most active users – those reviewing financial documents and more likely to emerge as the main contenders to be prioritized.

Negotiations: During negotiations, multiple internal and external teams will perform due diligence while crafting their terms and conditions. With a single platform for document management, all parties can quickly access the latest document versions, and also new documents being added. The final drafts may be published in the VDR for disclosure.

 

As deals close, advisory firms open a separate VDR for investor reporting. Private equity firms and investors value transparency, and firms that handle buyer and investor expectations with integrity gain the upper hand. All this is now possible with a powerful platform, the Docutone DataRoom.