As we know, COVID-19 has caused problems for many industries, and the legal industry appears to be no different. With specific impacts to mergers and acquisitions (M&A), it is important, now more than ever, to look ahead at the potential longevity of the pandemic’s effects and how its challenges can be overcome.
For the past year, key decision-makers have been unable to travel due to restrictions which have resulted in slower or failing negotiations. Thus, there was an increased need for secure data transfers and ensuring confidentiality remains throughout negotiations. But as the world starts to reopen, and travel restrictions start to ease, many companies, such as BP, have announced their plans to continue remote working styles. Clearly the WFH regime is set to continue, noting this trend, smart decision makers will invest in secure geographically spatial working environments, such as virtual data rooms, to manage data and deals.
Furthermore, another change that has arisen is the industry’s perspective of seller-friendly markets. It is presumed that these are gone. Thus, the increase of risk assumes that buyers need greater security. Deloitte believes that “the relevance of Material Adverse Change (MAC and MAE) clauses in M&A contracts in those markets where this instrument was rarely agreed (e.g. Belgium or Germany) will increase and COVID-19 will serve as an example in future negotiations.” Clearly a further COVID challenge that is here to stay.
With M&A transactions being the main use of Virtual Data Rooms it is clear that this technology is being confidently adapted by law firms. Moreover, the role of cyber security has been enhanced during the COVID-19 era in M&A procedures as in-person negotiations are unable to occur, and as noted, this trend is set to continue. Awarded the ISO9001 and ISO27001 cyber security accreditation, Ruby Datum is committed to providing a quality and secure platform and service. Furthermore, with fast and bespoke integrations for your business, alongside user specific permission features, Ruby Datum’s Virtual Data Rooms are the ideal storage location for your highly confidential data.
Contact us today to see how Ruby Datum can transform your M&A processes [email protected]