Essential M&A Tools

M&A is a complicated process that involves many stakeholders, regardless of the size or industry of the company. This requires effective project management and collaboration. That’s why it’s important to look for software that has been specifically designed for M&A and offers features like project tracking, a central repository and document storage that includes security settings and control of versions. Many companies also utilize collaboration tools to help with M&A processes. It is crucial to test these tools for user-friendliness and ensure that they work with the tools your mergers and acquisitions team utilizes frequently.

The M&A process begins by conducting a thorough research phase. This includes internal discussions about what the company’s reasons for considering an acquisition or merger, market research into potential options, establishing an initial list of target companies and the initial meeting with their management teams. Traditionally, these activities have been supported by databases that let users search for companies based on their name or by industry, location, revenue of the company, and many other criteria.

Once an opportunity has been established, it’s the time to do due diligence on the target. This requires a thorough assessment of the financial health of the target, market positioning, customer base, and growth potential. Advanced analytics tools provide more informative data, as well as predictive modeling that can help support the due diligence process.

The tools that Company X used initially were inexpensive, but they ultimately led to delays in the M&A process, as well as security risks that increased IT, legal and operational costs. The company realized that it made a mistake by leaving Devensoft behind and decided to return to the platform.

Written by Roberto Contreras