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Using a VDR to work with regulators

Axel Kirstetter, VP Product Marketing, Merrill Corporation | April 11, 2017


Two powerhouses in the eyewear market are intending to join forces. Essilor, with more than 60,000 employees globally, specializes in manufacturing of lenses. The other with the exotic name, Luxottica, has approximately 80,000 staffers and is the parent of brands like Oakley and Ray-Ban as well as retail outlets like Sunglass Hut and Target Optical.

The combination would create a Franco-Italian-behemoth in the industry certain to be scrutinized by EU regulators. The combined entities meet the intra-European threshold of EUR250M and global threshold of EUR5B in turnover that trigger a formal merger review. Whereas Merrill Corporation has no insight or opinion on the outcome of the process, it begs the question: How does technology support a company post-deal closure in working with a regulator.

First, there has to be a handover of the virtual data room (VDR) from merger advisor to the company or their post-merger advisor. This can be done via closure and reload, or ideally via ownership transfer. Merrill’s services team are experts in assisting in this process. The next step consists in changing the permissions of users to access information to which they are no longer entitled, combined with deactivating users that no longer need access to the platform. With Merrill’s intuitive permission management and reporting this is achieved with only a few clicks.

Thereafter new users can be invited, including regulators. They will be interested to see a different type of information to the common deal structure overview. With less interest in the valuation aspects and more interest in market dependencies and supply-chain impact, it is worth restructuring the information in such a way that it becomes more tangible to the specific circumstances. Additionally, it is helpful to aggregate information between acquirer and target. Our VDR allows for a quick and easy transformation of index structure, re-assignment of content, folder and documents and amalgamation of overlapping information.

Whatever happens in the eyewear industry, foresight via VDR use will avoid in-hindsight regrets.

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