M&A is a complicated process that involves multiple stakeholders, regardless of the size or industry of the company. This requires effective project management as well as collaboration. It is essential to find software that’s designed specifically for M&A, and that offers features like project tracking, a central repository, and document storage, as well as privacy and version control. Many companies also use collaboration tools to help with 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 research phase. This includes discussions within the company about what the company’s reasons for considering a merger or acquisition and market research into possible options, development of a shortlist of target companies and the initial meeting with their management teams. Traditionally, these actions have been facilitated by databases that let users look up companies by name or industry, location, revenue of the company, and many other criteria.
Once a deal has been established, it’s the time to do due diligence on the target. This requires a comprehensive overview of the target’s financial health and its market position, customer base and potential for growth. Advanced analytics tools can be used to provide more insightful information and predictive modeling that supports a more robust and informed due diligence process.
The free tools Company X used initially were cost-effective, but ultimately they led to delays in the M&A process and cybersecurity risks, which led to an increase in the legal, operational and IT costs. In the end, the company realized that it had made a strategic mistake by moving away from Devensoft and decided to return to the platform.