No matter what industry or size, M&A involves multiple stakeholders and requires efficient project management and collaboration. It's crucial to locate software that's created specifically for M&A, and that offers features such as project tracking and a central repository and document storage, as well as privacy and version control settings. Additionally, many companies utilize a variety of collaboration tools to facilitate their M&A processes. It is vital to test these tools to assess their ease of use and to ensure they work with other tools your team uses.
The M&A phase begins with thorough research. This includes internal discussions about the reasons why a company might think about an acquisition or merger as well as market research to evaluate potential options, the development of a target list of companies and initial contact with management teams. Traditionally, these actions were supported by databases that let users search for companies using their names or by industry, business revenue, location and other criteria.
Once a deal is identified, it's now time to conduct due diligence on the target. This requires a thorough overview of the target's financial health and market position, as well as its customer base, and growth potential. Advanced analytics tools offer more precise data and predictive models to aid in a more robust due diligence process.
Although the tools that Company X initially used were cost-effective upfront, they ultimately caused delays in their M&A process and cybersecurity risks that increased legal, operational and IT costs. The company realised that it had made a mistake by leaving Devensoft behind and decided to return to the platform.
