Author Archive Samuel Honkala

BySamuel Honkala

Document Management and Business Operations

The concept of document management started in the office with the tall filing cabinet in the corner. As the business grew, the number of filing cabinets increased, along with the potential for chaos. As the business needed to share documents with other members of the organization, these documents would have to be retrieved and re-filed manually. These processes were expensive and took up valuable personnel hours and payroll. It was not long before the concept of document management was in the spotlight.

The concept of document management is not new, and most organizations use some form of a physical filing system. Today, however, most documents are created digitally and printed only when necessary. This makes it easier to index and retrieve documents, which can be vital to the success of a transaction. The benefits of digital documents go beyond the speed and convenience of searching and retrieving documents. They also offer added security, allowing multiple people to work on the same document at the same time, track changes and histories, and even implement version control.

Using document management tools is the best way to manage a document library. Not only does it reduce costs, it also allows you to manage and organize the files in an efficient manner. Moreover, these services follow strict legal guidelines and can help you get signatures. They are the best for those who want to quickly sign documents and have them legally binding. Aside from allowing you to work faster and more efficiently, they are also easier to use than manual documents.

Another great feature of document management tools is the ability to revoke rights to files that have been downloaded. With digital rights management, companies can keep track of how many times a document is accessed. In addition to this, these tools can make it easier to audit and manage the documents. For example, they can create and revise versions of documents, which can help them to track who is editing what. When you have to protect intellectual property, a digital data room can help you secure it.

Users can create and manage documents from a central location. Using a document management software is a great way to avoid this hassle. It can also help you keep track of the content of different files and keep your business on track. In fact, many companies now use data rooms to store their documents, which is why they are such an essential part of their workflow. If you are using a data room to store your company’s information, the right system will help you manage it better.

Managing documents is a must for any organization. While most organizations still use physical filing systems, most of their documents are now produced digitally and printed only when they are necessary. These digital files are easier to index and retrieve, and provide added security. They can also accommodate several users at once and have version control. This means that you will be able to monitor who is using the data room and how. And most important, you’ll have the ability to control the security of your information.

BySamuel Honkala

The Importance of Virtual Data Rooms

Document management (DMS) is the process of managing electronic documents. It involves tracking, storing, and retrieving these materials. It is also important to ensure that these materials are easy to access by all relevant parties. Traditionally, this was done with a tall filing cabinet in the corner of the office. As the business grew, the number of filing cabinets increased, and so did the chaos. Every time a document needed to be shared, it was manually retrieved, re-filed, and returned to its proper place. In addition to being a nuisance, this cost the company money in both payroll and personnel hours.

The right document management software will allow companies to manage the documents in an efficient manner. It will also help them to streamline their process. With document management software, companies can create unlimited secure and easy to use virtual data rooms. Using a virtual data room is not the same as document management software. It can only be used for sharing information that’s necessary to complete a deal. A virtual data room is a simulated version of a real data room and isn’t recommended for sensitive or confidential documents.

Many document management software applications will come with built-in security and digital rights management (DRM) features. With DRM, companies can track who has downloaded documents, who accessed them, and how often they were accessed. They can even manage libraries of data and keep track of their files and folders. They’ll be able to control the security of their data and protect the intellectual property they create. It’s never been easier to manage documents.

The interface of a data room should be easy to use and intuitive. It should be easy to navigate and have consistent functions. Users shouldn’t need to sign up for training sessions or attend special workshops to get acquainted with the software. All they have to do is click a link, enter their user name and password, agree to a client-specific disclaimer, and access the files. This way, the entire process of managing documents becomes simpler and faster for all parties.

Another benefit of using a data room is that it’s easy to use. The user interface should be easy to use and offer consistency in functionality. The interface should be easy to navigate, and there shouldn’t be any need for a training session for your users. When you need to access the documents, they should be easily accessible, and you should be able to change settings easily. The interface of your data room should be intuitive and easy to use.

An ideal data room will be easy to use and offer several features. Its user interface should be simple and easy to learn. The software should allow users to login quickly and easily without needing extensive training. In addition to this, the software should be secure and have a digital rights management system. The software should also be able to manage the documents securely. Its usability and consistency will be crucial for your users. It should also be easy to share information with the rest of your organization.

BySamuel Honkala

The Importance of Virtual Data Rooms

Internet security

For many modern Internet users, still storing information on the network means insecurity and unauthorized access to materials. Especially when it comes to business and storage of important confidential information. In this case, the Internet entrepreneur wants to protect himself as much as possible from the possible leak of truly valuable information. Often, professional legal expertise is required in such matters. At the same time, the buyer wants to feel as protected as possible at all stages. This is a purchase agreement, and the completion of the transaction. Storing information on the network is possible and even necessary. Of course, if the choice is a virtual data room.

Virtual data room

Suppliers of virtual data rooms assure – storing corporate, confidential and any other information on the network can be as secure as possible. Of course, if you choose a virtual data room as the storage location. Managing documents and files in such a repository is very convenient.
The data room is a reliable repository with a clear structure in electronic form. The importance of virtual data rooms for online entrepreneurs is clear. Networking becomes comfortable, and most importantly – safe. Transferring documents and any materials to third parties is as simple as possible. To download, just log in and get access from the owner.
A great solution for executives could be a virtual boardroom. Conducting a meeting of the board online is convenient when the leader is far from the workplace.

What are board portals for?

Modern portals of the board of directors will help solve many problems. Such online meetings are relevant for online business owners and all business people who are accustomed to value their time.
All information in the virtual storage is protected from unauthorized access. This means that under no circumstances will third parties be able to receive confidential information. One of the features of a virtual data room is the principle of “fireproof safe”, that is, an increased level of protection.

Creation and maintenance of reliable resources is done by experienced providers. Professional specialists quickly install software for boardrooms, as well as for the management board and board of directors, which you can find on
The portal of the board of directors always has high-level software. This, first of all, shows a comparison of board portal portals with other resources.
When choosing a virtual data room provider, it is important to pay attention to user feedback and company experience. A reliable data room provider is the best investment in the security and success of your online business.

BySamuel Honkala

Reasons Why You Need a Virtual Room for a Startup

For over 20 years, people have been enjoying the benefits of the electronic era. As business always has to move forward – today, we see business moving from the physical plane to the virtual. Thus, people facilitated all processes within the company. On the other hand, there was a need for appropriate security measures.

Virtual Data Room Providers offer one of these solutions. The Data Room is an online repository that provides the ability to upload, download, and store valuable documentation and files. Virtual data room services are modern, convenient, and affordable. Plus, this technology saves you a lot of time, and we all know that time is money.

Cloud storage in itself is not news, but there is something that differentiates virtual data rooms from similar data storage services. The virtual data room software provides enhanced security, user log, live chat between participants, collaborative feature. These features distinguish VDR from the rest of the storage services.

The importance of virtual data cabinets in big business is explained by the fact that this technology is suitable for mergers and acquisitions. As the purpose of great marketing is to multiply its value and importance in the market, mergers of companies occur as often as acquisitions. It’s important to remember that not only large corporations and mid-sized companies but small businesses can also experience the benefits of using a data room.

Data rooms for startups

The Virtual Data Room (VDR) is indispensable at a stage when a company is just beginning to grow and make a name for itself in the market. In general, there are three reasons to think about the importance of such online storage for your startup.

High level of security

Document management is not only about attention to detail, but also the ability to create the conditions for secure and secure storage and transfer of data. Data leakage is always a loss. Imagine that you have come up with an incredibly useful business promotion strategy, and your competitors have knocked you out. There are many examples of this: the main idea being that security cannot be in second place. So be prepared to spend enough resources and resources on security and privacy.
Data rooms offer a cloud-based environment for storing all kinds of valuable files, papers, licenses. This is far more effective in terms of security than traditional physical data rooms. Besides, quality data room providers use encryption for cybersecurity. Because the customer agreement is based on trust – the data room becomes a guarantee of a potential partnership.

Less cost

A startup should focus on resource efficiency. At the same time, you can’t forget about performance. The ability to properly allocate resources to all stages of business development is an advantage and the strength of a businessman. Proper diligence and frugality will be helpful to you, of course, but this is not enough if we are talking about the same cybersecurity.

To be able to store securities and contracts in a traditional data room, you would need to pay rent, various overhead costs, office supplies, and the work of the employees involved. And so not once, but monthly. Everything is simple with VDR: you pay for quality, and at the same time, you save a lot of money and time.

Data room availability

The M&A Data Room allows you to complete a transaction faster, even if the negotiators are located around the world. Quite often, agreements (and mergers and acquisitions are even more so) take place between companies, which may be in different regions. And here, you will especially appreciate the ability to communicate via live chat, perform online audits, and the ability to transfer essential licenses, files, and contracts through online storage – VDR.

BySamuel Honkala

VDR for mergers & acquisitions

Mergers & Acquisitions (M&A) are a type of deal that is increasingly reaching the countries around the world. It is, indeed, a global thing. The number of transactions in which medium-sized companies are involved is growing steadily. It is not just the importance of so-called M & A procedure that is increasing, but also the professionalism, frequency, and speed of such SME transactions. 

Besides, a new market segment is emerging, specializing in corporate sales during the crisis. The term “M & A” includes the translation “mergers and acquisitions” as well as the upstream and downstream processes. Typically, an M & A process goes through five stages and concludes with the sale. These are difficult to separate in time and sometimes even run parallel.

Possible challenges in succession planning and during the crisis

Basically, the success of an M & A project depends on the current operating result and, if applicable, the crisis status of the company to be divested. The more advanced a crisis stage is already, the more complex the investor or successor search. Depending on the economic situation, different challenges have to be mastered. A professional and structured process is indispensable in dealing with these challenges.

Virtual Data Room

The virtual data room (VDR) is a web-based electronic safe in which documents of all kinds can be set. It keeps these documents safe because only authorized persons have access via the Internet. Some providers guarantee this security telling that they setup VDR in the respective high-security areas of the commissioned providers with certified server landscapes.

Since access is via an Internet browser, there is no need to install software or invest in hardware.

The setup of the data space takes over the respective provider, without that it requires a considerable time lead. Once the data room exists, the user receives an e-mail message that allows logging traditionally. A virtual data room should have the same basic data structure for each property in the portfolio and lead to lower levels of aggregation below it. This facilitates surfing through the information offered and greatly enhances the willingness of the experts in charge of viewing the data to deal with the portfolio.

Talking about the positive moments, VDRs save a considerable amount of time for both the seller and buyer who decided to set up vdr and protect critical data. The second important thing is that information transfer can easily be controlled. Many users already estimated the feature that allows one to set up individual rights of inspection, on the one hand, and the individual property rights per document, on the other hand. 

Practical people who love details and reporting would appreciate the fact that all the actions are documented. Besides, VDRs let the users evaluate the prospective customer activities, assess the interests, view spatially unbound equality of all interested parties. A virtual data room enables a structured approach to the complexity of M & A processes and speeds up the entire process. Of course, the company itself has its own access to the virtual data room with access to all documents. Upon completion of the M & A Transaction, the Company will be provided with a volume of information about all actions in the Dataroom.

As it always happens, there are some pitfalls as well. With all the advantages of the system, however, a certain disadvantage of the virtual data space should not be concealed. According to the current state of the art, it is impossible to prevent the computer surface from being photographed and a usable image of the user interface being recorded. Since the user of the virtual method is not sitting in a monitored room, but in his own office, there is, therefore, a slight risk of abuse. 

Therefore, if you want to prevent any individual documents from going outside at all costs, the conventional physical data space should continue to offer a bit more privacy. However, anyone who has ever participated in a due diligence process in a physical data room knows that deliberate abuse cannot be ruled out. After all, why else will documents that have been made available disappear again and again, without it being possible to clarify afterward who is responsible for this?

However, at least as important is the function of the data room as a highly secure communication platform for complex real estate transactions. Because the exchange of information and the inspection of stored documents takes place within a secure and encrypted Internet connection. This considerably reduces the risk of espionage compared to the usual sending of e-mails with attached draft contracts.

The versioning function of some vendors also ensures that every changed version is stored automatically and unalterably during contract negotiations. Also, a history display usually ensures that every minute touch of a file is recorded, so that it is comprehensible at any time who has done what with which document or is currently doing it. 

The establishment of a so-called watch list results so that the user will receive a notification when other users are processing one of the documents on the watch list. If a multi-party bidding process is to be negotiated at the same time, this can be organized within a single data room by granting different access rights to different subsections. This can also be concealed without further ado, that even with other interested parties or with whom negotiations are conducted.

BySamuel Honkala

VDRs, virtual and physical data spaces

In order to review the documents, prospective buyers will usually put together a team of experts, each of which will concentrate on individual sections of the data provided. Typically, both internal employees from the buyer company, as well as external consultants, such as lawyers, tax consultants, auditors or strategy consultants. For international teams, the difficulty is often to bring all members together in the same place for a limited time. 

This problem is eliminated in virtual data rooms, since the access to the information via the Internet. In addition, virtual data rooms allow multiple prospects a simultaneous and even longer examination. The problem of scheduling is thus eliminated, but also the direct communication of the audit team is limited.

• Another advantage of using virtual data spaces is the ability to index documents so that you can use different tools such as: B. search functions certain topics, keywords or phrases in documents can be found easily and quickly.

• data volume

• number of users

• Period of use

For a medium-sized company may be incurred here monthly costs in the amount of several thousand euros.

And yet, a virtual data room can tend to increase the efficiency of the vendor by providing support and data maintenance on the central platform. Conversely, if only a handful of prospective buyers are involved in the transaction process, a physical data room will generally be more cost-effective and moreover ensures more direct contact between the seller and the buyer. This point should be given corresponding importance in terms of the sales aspect of the transaction.

• An increase in transparency is an advantage for both sides. In addition to the exceptionally required provision of the Dataroom content as an annex to the sales contract, all actions in the Dataroom (uploading or deleting of documents by the Seller, viewing, copying, downloading of documents through the prospective buyer) electronically documented advantage. Accordingly, it can be reconstructed when documents were in the data room and who looked at them. In case of later disagreements between the buyer and the seller regarding the disclosure of relevant documents, it is thus easy to clarify the situation.

• In certain situations, the electronic records of the prospective customer’s data room activities may also provide the seller with insight into how each party is doing. The content conclusions, the prospective buyers draw from their audit work, remain unknown, yet show the particularly high activity of all users in one or more areas where the audit focus. This can be an advantage for the seller, especially during subsequent contract negotiations.

• Also in terms of communication, there are differences between physical and virtual data spaces. If questions are collected in forms in physical data rooms and then answered in writing or question-and-answer sessions, there is usually a so-called Q & A function (Questions and Answers) in a virtual data room. It is an electronic messaging system where questions are asked and automatically sent to the seller. The seller’s answers are then sent back to the prospective buyer and the entire process is documented.

Advantages of the physical data space

From a “traditional”, communicative point of view, the technical and procedural advantage of the virtual solution can be detrimental, as the physical data room shows its strengths: It offers the possibility of personal support for the prospective buyer through the seller’s advisors.

As a matter of urgency, questions may be clarified, or due diligence findings must be placed in the right context – before they develop momentum on the part of the prospective buyer, which may be more complex, but it may well be worthwhile: from our practical experience, often an early objection treatment prevents the escalation of possible problems.

The communicative disadvantage for the buyer in terms of communication in virtual data rooms is also the isolated operation of the due diligence team:

  • The team members are not sitting here just like in a physical data room together. So can questions or critical
  • Points are not discussed directly in the team. In virtual data rooms, the buyer’s due diligence officer must ultimately ensure communication.
  • Last, but not least, the topic “security” mentioned above represents a not insignificant risk in the use of virtual data rooms. Although it is basically the case that one can break into a physical data room and steal data, the technical possibilities are one virtual data space for data theft or abuse much larger (copying data, screenshots, etc.) There are probably a variety of security devices (restriction of copy, print and download options), but unfortunately, there are also electronic tools to bypass these security devices.
BySamuel Honkala

The importance of virtual data rooms

As the corporate transactions and M & A processes are made, one of the most important steps is to carefully deal with all the information regarding the company that is being sold. The basis for this examination is the compilation of a meaningful and complete “data room” by the seller and the examination by the interested party or buyer. What is important about data rooms?

One of the key tasks of the seller is the production of transparency to the sales objective. The job of the buyer is to check all the information. Both parties have to work carefully to complete a transaction successfully. This process is also referred to as due diligence.

Goal and Process of Due Diligence

A due diligence process gathers information about what the company to be acquired is. Due diligence processes can be very different and vary greatly in scope. Typically, they cover the legal, tax and financial sectors, but also more and more areas such as IT, insurance, environment, production processes, and human resources. The relevant information is disclosed in the form of corresponding documents in a data room and by answering supplementary question lists.

From the point of the buyer’s view, it is about examining the opportunities and risks associated with the acquisition and how the company can be integrated as quickly as possible into its structure. The result of the test procedures has accordingly the purchase decision itself, the transaction structure and/or the amount of the purchase price. If risks are identified in the due diligence, prospective buyers usually derive general and specific guarantee requirements in the purchase agreement.

Physical and virtual data spaces

Indeed, just a few years ago, there were physically protected spaces where the seller (or his lawyers and/or advisors) provided relevant information in the form of paper documents. Such a data space may well be compared to a shop window in which the seller can place the goods that are to be sold.

In other words, it is the company that is going to be sold, is presented to a very limited circle of prospective buyers for the introduction. For this purpose, the relevant documents are sorted and put together according to the main areas. 

The documents are recorded in an index, which later helps the prospective buyer or the authorized auditors to orientate themselves in the data room. These types of data spaces are also referred to as “physical data spaces” because the provision of corporate information is physical.

For some years, standardized processes of preparing, providing and retrieving information via the Internet have been used to map data spaces to electronic media. These computer- or Internet-based solutions are called virtual / electronic data rooms.


At the beginning of each sale process, sellers and prospective buyers make a so-called confidentiality agreement, which is intended to protect both the company being sold and its employees and shareholders, as the information provided is very sensitive. In addition, prospective buyers must sign a further explanation, the so-called Datraumbegehungsregeln. 

This agreement governs whether and how copies of documents may be made. If questions arise from the due diligence process, they should generally be submitted in writing and transmitted to the seller or his advisor. 

Thus, complete documentation of the examination process is possible for both sides. As with the physical Dataroom, only those persons “entering” the virtual dataroom who have previously signed the privacy agreement and the Dataroom Rule Rules, or who have accepted online, are allowed to enter.

Access Control

In the long run, virtual data rooms are nothing but servers in a high-security IT environment where data or information is stored digitally. Access, provision of data, and exploitation of the Dataroom are managed by a Dataroom administrator previously designated by the vendor. This task is usually assigned to the assigned M & A advisor or the attorney accompanying the transaction. 

The members of the due diligence team get access to the data via the internet. You have to register for this using an individual identifier and with the help of a password on the website of the Dataroom Provider. Naturally, the highest safety standards apply here to prevent unauthorized access. Often several security levels in the form of PIN and TAN numbers are given.

In addition, it can be determined in advance who will be allowed to see specific data or documents at what time, accordingly.  Importantly, less critical or public documents, which are also referred to as “green-level documents”, are already made available at the beginning of the due diligence process documents with sensitive data.

Sometimes, last, highly sensitive data, such as. For example, product cost estimates or personnel files are only made available after signing as part of a so-called “confirmatory due diligence” (confirmatory due diligence).