M&A is a complex process that involves many stakeholders, regardless of the industry or size of the company. This requires effective project management and collaboration. This is why it’s crucial to find software specifically designed for M&A and includes features like project tracking, a centralized repository and document storage that includes security and version control. Additionally, many companies employ a variety collaboration tools to aid in their M&A processes. It is important to assess the tools for their user-friendliness and to make sure they are compatible with the tools that your team uses regularly.
The M&A phase begins with a thorough investigation. This includes discussions within the company on the reasons why the company may consider a merger or an acquisition as well as market research to evaluate potential options, the development of a list of potential companies and the initial communication with management teams. Traditionally, these functions are supported by databases that allow users to search for companies by name or industry, location, revenue of the company, and many other criteria.
Once a deal is discovered, it’s time to do due diligence on the target. This involves a thorough analysis of the targets‘ financial health and its market position, customer base, and growth potential. Advanced mergers and acquisitions analytics tools can help to provide more insightful data and predictive models that supports a more robust and informed due diligence process.
The tools that Company X used initially were inexpensive, but they ultimately caused delays in the M&A process, as well as cybersecurity risks, which pushed up legal, operational and IT costs. The company realized that they had made a mistake by leaving Devensoft behind and reverted back to the platform.