The biggest worry of any business owner in this world is how to protect the confidential information of his/her Company or Organization while selling it. But this can be done very easily with the help of the Virtual Data Room, and here are ways on how to do it. Read On…
Have A Loophole-free Non-Disclosure Agreement: NDA or Non-Disclosure Agreement is a very critical piece of document that should be in place with each potential buyer before the buy-sell discussions begin between you and them. But ensure that the NDA is completely error-free and also loophole-free. Also, the NDA should be drafted before you give your potential buyers access to your confidential documents through the Virtual Data Room service provided by us on www.rrdonnelley.com/venue/jp. Your NDA should include information such as who all can have access to the Company documents, what all documents and data are protected, who can share information with whom, the procedure to get the information back, the procedure to legally disclose any document, the actions that will be taken in case of the NDA breach by any party, the effect of the NDA on any future agreement between the parties, and other legal formalities. Moreover, be sure to include the information on Employee sharing or what part of your team you will make available for the buyer incase the deal goes through.
Pick A Secure Data Room: The due diligence process that takes place before any buyer acquires your Company is very important. And today, all such due diligence is run through the Virtual Data Rooms. In a VDR, both the parties will post hundreds of confidential documents, and hence to avoid any type of leak that can prove hazardous for the deal, pick a virtual data room that is supremely secure and is only accessible to parties authorized by you.
Review Before Posting Info To The Data Room: Be very careful of what you post to the virtual data room. And whenever you receive any request from any potential buyer to post the documents relating to your Company, keep in mind the fact that it is never advisable to post every inch of your Company information to the data room for the prospective buyer to evaluate. Remember that he or she is just a ‘prospective’ buyer till both of you seal the deal. Hence, refrain from posting everything, especially a trade secret or Government classified information. Moreover, review the documents carefully before you post them. This is because there have been instances where the contract has been breached due to someone disclosing the contract’s contents. You can also use the secure internal resources in order to share some of your information.
Grant Selective Access To Sensitive Information: Always grant access to only selective people or users if there is some sensitive information. You can do this with the help of a Virtual Data Room. If you are going through an auction, that is if you are in contact with multiple potential buyers simultaneously, then you should take your time before you disclose the confidential information about your Company. This will provide you ample time to confirm the authenticity and genuineness of all the potential buyers. While disclosing your private documents, you can also edit or hide the highly sensitive part of the documents.
Use Watermarks And Passwords: Last but not the least, you should also use watermarks of your Company, it can be your Company logo, your Tagline, or even the word ‘Confidential’, on all your documents before sharing them with the potential buyers on the virtual data room. You can also impose restrictions such as anti-downloading and anti-print. Furthermore, you should keep your files containing those confidential documents password protected or encrypted in order to be completely secure.
So, as a business owner, if you are about to sell your company or part of your business, but are worried about the safety of your confidential information, then come to us at RR DONNELLYand we will help you sail through the whole deal with our Virtual Data Room provider services!!