M&A transactions are complicated, and with increasing compliance requirements and data legislation set to make the process even more difficult, it’s becoming harder to make quick decisions based on critical insight. With a need to focus on the deal, the efficiency of a successful transaction and a thorough due diligence process are becoming increasingly important.
With the value of successful M&As increasing in line with the growth of the world economy, more money is at stake and with that comes more pressure on a fast but thorough deal to go through successfully. So how can efficiency be improved in this complicated process?
Improve the Flow of Data
The key to an efficient M&A transaction is having the right data in front of you at the right time, and not having to worry about how that data is being shared and managed. If your process still involves storing M&A documents on a central server then this is an area where efficiency can be improved immediately.
Virtual data rooms give key stakeholders the ability to view and access vital documentation anywhere in the world, removing the legacy process of traveling to the site of a central server and allowing you to streamline the transaction process and close the deal faster.
More than document management
Over recent years, cloud document storage and sharing services such as Dropbox and Google Drive have grown in popularity, and on the face of it, this would be a solution for the M&A efficiency problem of having a central server. However with greater compliance responsibilities during the due diligence process, plus new legislation around data protection, these services do not guarantee that companies in the M&A process the security that they need.
As well as the compliance issues, there are greater efficiency gains that can be made in the M&A process by using a specialist data room that goes beyond simple document storage and sharing.
Specialist M&A virtual data rooms give you additional services that allow you to focus on the deal and manage the whole transaction process more efficiently.
Among the efficiency savings you should look for are:
- A dedicated deal co-ordinator will manage the data room for you, allowing all senior stakeholders to focus solely on the deal
- 24/7 support that is on-hand to help you with every element of the data room, no matter what time or where in the world your stakeholders are
- A simple, easy to use interface that requires minimal training and is accessible to all parties
- A responsible, experienced data room provider should understand and implement all compliance and data protection legislation, giving you the peace of mind that you are working in a secure environment that will help you get the deal done
Creating an efficient process can be the difference between a successful deal and one that doesn’t go through. Virtual data rooms can give you the platform you need to ensure that your deal goes through as quickly and easily as possible and allow you to focus on the transaction and not the administration.
