Do I Really Need a Virtual Data Room? Comparing Data Rooms to Sites like DropBox
The worldwide virtual data room (VDR) market is expected to more than double in size to nearly $1.9 billion by 2022, this according to MarketsandMarkets. Driven by a combination of robust M&A activity, technological improvements and changing business practices, these highly secure systems for storing and managing sensitive data are streamlining how transactions are conducted.
The mergers and acquisitions market is poised to reach near-record levels in 2018. As discussed previously, Washington’s pro-business stance and tax reform have been driving forces in this growth. Now with mega-mergers, where the value is $5 billion or more, it’s almost a foregone conclusion those businesses involved will use big name Wall Street investment banks to advise them on the transaction. But for smaller deals, especially those in the $500,000 to $500 million range, it’s still important to get sound financial advice. For those companies, the choice often comes down to M&A brokers versus M&A advisors. So what’s the difference between the two, and how will you know what’s right when it comes to your transaction?
Merger, Acquisition, or Joint Venture? Consider this before you decide.
As we’ve discussed in previous posts, the mergers and acquisitions market is seeing robust growth. In fact Goldman Sachs predicts M&A spending could reach $355 billion in 2018, a 6 percent increase over 2017. This uptick is being driven by such things as tax reform, digital strategies and M&A technology tools. But a merger or acquisition isn’t the only option when it comes to expanding into a new market, adding key products/services or building a customer base. In fact, strategic alliances and joint ventures are becoming increasingly popular for a variety of financial, operational and logistical reasons.
In 2017, the number of data breach incidents in the U.S. hit a record high of 1,579 breaches (ITRC). This number indicates a nearly 44% increase over the record high figures reported for 2016. The best method of preventing a data breach is to ensure your data is adequately secure. Many businesses, however, make the mistake of sharing and storing sensitive data via email or other cloud services that do not guarantee encryption. It’s not surprising, then, that these unsecured spaces have become easy targets for hackers. It’s currently estimated that the average cost of a data breach in the U.S. is $3.62 million, a staggeringly high figure that should make any business wary of a cyber attack.
If 2017 is any indication, the corporate development landscape for the near-term can be summed up with the phrase “The more deals the merrier.” And firms that are seeing this trend run the gamut from new start-ups to established corporations.
In 2017, Americans spent a record $6.6 billion on “Cyber Monday,” a day in which many retailers kick off the holiday shopping season online with countless sales and promotions. This spending is a 17 percent increase over last year, demonstrating that online shopping is becoming an ever-increasing part of the U.S. retail market. And it’s not just during the holiday season that e-commerce is growing. According to the U.S. Census Department, retail e-commerce sales as a percent of total quarterly retail sales has more than doubled since 2008, to just over 8.5 percent. Along the way, it’s made Amazon a behemoth, Jeff Bezos the richest man in the world and brought about the decline or demise of major brick-and-mortar stores like Sears, RadioShack, Toys “R” Us and Macy’s. So what brought us to this point?