M&A is a complex process that involves multiple stakeholders, regardless of the industry or size of the company. This requires efficient project management as well as collaboration. This is why it’s crucial to choose a software that has been specifically designed for M&A and includes features like project mergers and acquisitions tracking, a centralized repository and document storage that includes security settings and control of versions. Additionally, many companies utilize a variety of collaboration tools to aid in their M&A processes. It is crucial to assess these tools to determine their user-friendliness and ensure they integrate with other tools your team utilizes.
The M&A process starts with a thorough study phase. This includes internal discussions on what the company’s reasons for considering merging or buying, market research to determine potential options, the development of a target list of companies and initial contact with management teams. These processes are usually supported by databases that allow users to search by name or location, revenue of the company and other criteria.
Once a deal has been established, it’s the time to conduct a thorough investigation on the potential target. This requires a thorough assessment of the financial health of the target and its market positioning, customer base, as well as growth potential. Advanced analytics tools offer more informative data, as well as predictive modeling to help in the due diligence process.
The tools that Company X used initially were cost-effective, but ultimately led to delays in the M&A process, as well as cybersecurity risks, which increased the legal, operational and IT costs. The company realized that they had made an error by leaving Devensoft behind and reverted back to the platform.