LONDON, July 22, 2020 /PRNewswire/ -- EthosData, a global virtual data room provider, expects M&A transactions to surge with emphasis on a new wave of deals for restructuring and debt-financing. Based on its experience of the global M&A markets and the usage metrics from its data room, the data room provider published the whitepaper "Preparing for a surge in M&A activity in a post-COVID-19 world".
While most 'traditional' acquisitions are broadly on standby, EthosData is seeing an uptick in fast-paced fundraising, restructuring and "involuntary" M&A as some companies rush to restructure, find liquidity or are forced to sell.
"We do a lot of M&A, more than 60% of our data rooms are used for corporate finance transactions, mainly M&A transactions," said Francisco Lorca, CEO and Founder of EthosData. "We have registered similar levels of user activity within the data room, and existing deals are moving forward, albeit at a slower pace than in relatively 'normal' circumstances."
He continues, "a good number of the transactions that were open before COVID-19 hit are still open and any decrease in activity due to paused projects has been made up by either more active users in the data room or the recent growth in new types of data rooms that our clients are opening. By the middle of May, EthosData almost came back to the same level of activity. Very interestingly, we are now seeing different types of data rooms being opened with many restructuring and debt raises."
Mr. Lorca also added, "as working remotely becomes more commonplace, close attention will need to be paid to who is able to access sensitive data, information which could impact markets, and files which have no business being in the public domain. The need for tools to keep transaction data secure, and to make transactions simpler, will only grow further. Data rooms will become a vital part of each deal, and their functionality may evolve to facilitate other areas of the transaction. Partnering with a trusted, established player in the data room field will be more essential than ever."
EthosData is a Virtual Data Room provider. The company was founded more than 10 years ago. EthosData has hosted more than 2,000 deals and has handled 900+ billions in deal transactions. With their intuitive platform and dedicated support team, dealmakers can now focus on their transactions, and leave the data room to the experts.