WHAT IS THE Virtual DATA ROOM DUE DILIGENCE?
It is consider one type of a business research or an investigation held before the acquisition, audit and merger, signing any kind of contract.
This research contains few types, those are some of them:
1- Commercial due diligence
2- Financial due diligence
3- Operational due diligence
4- Integrity due diligence
Due diligence, as it has strong relation to M&A, involves the disclosure of information by the sell side to prospective parties. It is the process to make sure that each party involved is exposed to all relevant facts before making any final decisions on the deal
This term was discovered in the United States Security Act 1933, where any broker accused of inadequate disclosure was protected from liability, if they could demonstrate that they had performed due diligence.
This is the reason that process will become the industry standard for the sake of avoiding risk.
Now, companies try to make legal and voluntary disclosure of all types of information to help potential buyers form a clear picture of their current operations, furthermore for future prospects. Interested parties then have the ability to make informed and intelligent business decisions.