Buy-side Vs Sell-side – VDR Specifics

Buy-side Vs Sell-side VDR

Information security poses difficult problems for people to solve. For example, the fact that your computer has been attacked is quite difficult to notice. Take a look at the main VDR specifics in the article below.

The Role of Sell-Side and Buy-Side Analysts

Selling a company is a rather complicated process. The work of an investment banker on the “sell-side” has its own specifics. Answers to the questions “to whom to sell the company?”, “How and for how much?” you need to have before you come to the buyer. It is also important to be able to properly present your asset. An experienced investment banker sees the whole deal almost from the very beginning. The ability to effectively solve emerging problems comes as dozens of successful transactions are completed. Therefore, it is very important to study the real practice of selling companies by investment bankers.

The job of stock market analysts (or investment analysts) is to make and justify recommendations for buying or selling certain market assets. Thus, their task is to help private and professional investors make a decision. Analysts draw their knowledge about the market both from public sources (market quotes, publications on company websites, and the media) and from those available only to a limited circle of market players (meetings with investors, conference calls, individual negotiations, personal meetings, etc.). Since any valuable information costs money, and analysts share just such information (facts and judgments), “seasoned” with calculations, they can sell it:

  • directly to private investors (such analysts work on the buyer side and are called the buy-side);
  • brokers or investment intermediaries (i.e., work on the side of the seller of valuable exchange assets, and such analysts are called the sell-side).

The Virtual Data Room and Its Specifics

A virtual data room (sometimes called a VDR or Deal Room) is an online information repository that is used to store and distribute documents. In many cases, a virtual data room is used to facilitate the due diligence process during an MA transaction, loan syndication, or private equity and venture capital transaction. This due diligence process has traditionally used a physical data room to disclose documents.

Take a look at the main specifics of the virtual data rooms:

  1. These services offer real-time data exchange in various forms. Some of them come with built-in video or audio chat, allowing customers to communicate directly and effortlessly using their own devices.
  2. VDRs also receive and transmit data in the form of documents that should only be opened by certain individuals.
  3. Once a VDR is closed, the cloud service erases it without leaving any trace, reducing the risk of important contracts being intercepted or leaked.
  4. You cannot enter the VDR without permission – it is sent only by the owner. Even a vendor that distributes a software solution and hosts a VDR on its server is denied access.
  5. These services are for authorized persons only.
  6. Continuity and improvement.

There’s no point in having a computer security system that you won’t use or one that won’t pay attention to a weak link somewhere on the other end of the chain. Rely on what you know well: who can be expected to attack or otherwise interfere with your work; what goals these people are pursuing or what they want to interfere with. Use this knowledge to determine what – and how – you should protect.