M&A is a tangled process that involves many stakeholders, regardless of the industry or size of the company. This requires efficient project management as well as collaboration. That’s why it’s important to find software that has been specifically designed for M&A and that also offers features like project tracking, a central repository as well as document storage with security and version control. Many companies also employ collaboration tools to aid in M&A processes. It is important to assess the user-friendliness of these tools and to ensure that they work with the tools your team uses frequently.
The M&A phase starts with thorough research. This involves internal discussions about the reasons why the company may consider the possibility of a merger or acquisition, market research to determine possibilities, the development of a list with potential companies and initial contact with management teams. These processes are usually supported by databases which allow users to search for name or location, revenue of the company and other criteria.
Once a deal is discovered, it’s time to conduct due diligence on the target. This requires a comprehensive analysis of the target’s financial health and position in the market, its customer base and potential growth. Advanced analytics tools can assist to provide more valuable data and predictive models that supports a more robust and well-informed due diligence process.
The free tools Company X used initially were inexpensive, but they ultimately caused delays in the M&A process and also increased cybersecurity risks, which pushed up IT, legal and operational costs. Ultimately, the company recognized that it made a strategic mistake by moving away from Devensoft and decided to come back to the platform.