No matter the industry or size, M&A involves multiple stakeholders and requires efficient project management and collaboration. That’s why it’s important to select software that has been specifically designed for M&A and offers features such as project tracking, a centralized repository as well as document storage with version control and security settings. Many companies also employ collaboration tools to support M&A processes. It is important to assess the user-friendliness of these tools and to make sure they are compatible with the tools that your team uses regularly.
The M&A process starts by conducting a thorough research phase. This includes internal discussions about what the company’s reasons for considering the possibility of a merger or acquisition and market research into possible options, establishing an initial list of companies to target and first contact with their management teams. Traditionally, these processes were supported by databases that let users mergers and acquisitions search for companies based on their name or by industry, location, company revenue, and many other criteria.
Once the deal has been discovered, it’s time to do due diligence on the prospective buyer. This involves a thorough analysis of the targets’ financial health, market position, customer base and potential for growth. Advanced analytics tools offer more informative data, as well as predictive modeling to support an enhanced due diligence process.
Although the tools that Company X initially used were inexpensive at first, they eventually caused delays in their M&A process and cybersecurity risks that pushed up operational, legal and IT costs. The company eventually realized that it had made a strategic mistake in deciding to leave Devensoft and decided to return to the platform.