An initial public offering (IPO) is a massive procedure that requires an enormous amount of preparation. To prepare for an efficient IPO companies must share an extensive amount of sensitive information with potential investors and underwriters. This can include financial reports and forecasts, expenses reports, and more. While a company is only able to divulge so much information before it loses attention, the IPO process is often time-consuming and requires a multitude of meetings or presentations as well as phone calls.
To reduce the chance of losing interest and simplify due diligence, many businesses that are IPO-ready opt to use virtual data rooms (VDRs). VDRs are secure online platforms that consolidate confidential information. These platforms allow for streamlined collaboration between internal stakeholders as well as external parties, like investors and underwriters. They also offer a variety of security options, including two-factor authentication and encrypted storage to guard sensitive data from unauthorised access.
When choosing the right VDR for an IPO it is crucial to consider the security standards, interface, capabilities, and customer support. iDeals, an industry-leading VDR provider, offers 24 hours live chat within the app and email support with average response times of 30 seconds. This means that potential investors can have their questions answered quickly and efficiently, reducing the chance of losing interest or not completing the IPO process. In addition, iDeals provides document management capabilities, such as version control and tagging to streamline and simplify the review process. It also facilitates Q&A workflows that enable all parties to actively collaborate during the IPO.