Net asset liquidation becomes smooth and easy with the right VDR software

Every branch of modern business is trying to introduce new digital technology to its system to make its fate easier. Virtual Data Room is just one of such programs and provides companies with many useful services in various processes of selling, storing, and exchanging data. VDR provides you with a secure space with full access control and other benefits that will also help you when liquidating your net worth effectively. 

What is net asset liquidation?

Net asset liquidation is the process by which companies sell off their assets as they are about to go out of business. Net worth is the excess value of the assets of the firm over its liabilities, and the proceeds from the sale of the same assets may be very different from their book value. 

Typically, a company begins to sell off its assets because it can no longer support them or their upkeep is beyond its control. This is what distinguishes the liquidation of assets from their strategic sale, as the second option implies an increase in efficiency and profits of the organization. 

What is a virtual data room? 

A virtual data room is a cloud-based online storage space that serves to securely store and share corporate data. The space provides the ability to share large numbers of documents with your third party quickly and efficiently without the use of third-party information sharing tools like email. 

VDRs can target different industries in business, often several at once, and typically VDR providers provide services during M&A transactions, fundraising, due diligence, asset sales, IPO, bankruptcy, real estate, and even during litigation. 

Carefully read the data room review of the company you choose to make sure the provider is providing the exact services and features you need. 

Benefits of VDRs during asset liquidation 

During an asset liquidation, just like any other divestiture process, your company is engaging too much sensitive information, but virtual data rooms can help solve a lot of your problems. Below we highlight the main benefits of VDRs during an asset liquidation:

  • VDRs help speed up the transaction process 

You can add and remove members to space in just one click, and you have improved document organization features. With drag-and-drop and bulk upload, you can load documents into the space quickly and easily, just as easily they can be restructured, creating an infinite number of folders and subfolders. Use the smart search function to find the right file faster

  • Makes your transaction more efficient 

VDR allows you to view the activity of all participants within the space, who viewed what documents, and what else they did with them. You can set expiration dates for document visibility. And with the built-in Q&A feature, any user can ask a question about any topic of interest and get a quick answer, all discussions are completely confidential 

  • Higher security for your data 

Your documents are sent to secure data centers, and you as the administrator have complete control over access to your data. You can deny any documents to any users to view, as well as prohibit copying, editing, forwarding, and uploading to avoid data leaks. They’re also all encrypted during data sharing, and the developers offer customizable watermarks on top of that. 

  • Reduce your costs

You no longer have to print and send lots of copies of documents to third parties, have face-to-face meetings, and spend lots of time looking at documents. With VDR you reduce not only your money but also your time.