As the B2B value chain is expected to see further growth and consolidation over the next five years, the sector is ripe for investment. Thus, mergers and acquisitions are widespread in this sector. But how to conduct this deal efficiently with B2B clients? Here is more about it.
Data room: how to securely conduct M&A deals with B2B clients?
Major mergers and acquisitions, or M&A, have been a trend in recent years. Companies strive for new heights through consolidation, absorption of competitors, or purchasing small but promising players. According to EY analysts, such business operations are concluded more often and for more and more significant amounts. And it worries the market and regulators more and more because just one transaction can permanently change the balance of cards in a particular market and affect ordinary B2B clients.
In every phase of an M&A project, in addition to the day-to-day business, numerous workflows involving the management and teams of the relevant departments must be executed on schedule. In addition, secure and instant data exchange plays a vital role. To provide such opportunities, B2B companies move their M&A operations into a virtual data room workspace.
The M&A data room supports companies in carrying out transactions securely, quickly, and successfully. As a software-as-a-service solution, this software can be set up within a few hours, and sellers and bidders can access transaction documents anytime, anywhere in the world. Efficient rights management ensures that everyone only has access to folders and documents for which they are authorized. You can include as many bidders as you like.
Operation of a digital M&A data room
Potential buyers receive an Internet link from the seller or the commissioned M&A advisor, which, in conjunction with standard Internet access and a browser, can be used to access a secure server area. Before access, interested parties must authenticate themselves with their name, account, and password. You will then be given access to the area that is relevant and assigned to you. Different structures and representations can be implemented based on the existing, uniform database for different profiles and users. It makes it easier for certain target groups to find the needed content and documents.
The navigation through the M&A data room database takes place with the help of an almost intuitively operated graphical user interface, which allows access to documents and content by clicking and inspection. At this point, the user only has the opportunity to read the existing documents. It means that further use or copying is not possible. If desired, a log-out procedure disconnects the connection to the server and its data area again after successful inspection.
So, the data room performs the following tasks:
- registration of incoming correspondence;
- registration of outgoing correspondence;
- work with any type of documents, the management of which is reflected in the formed routes of the movement of documents, including the process of approval and approval;
- reflection of the status of the course of work with the document;
- a quick search for documents;
- creation of reports on the execution of a document;
- work with documents templates;
- further storage of a document in a convenient electronic archive.
Finally, with the help of content management and collaboration solutions, other aspects of M & A activities, such as company valuation, contract design, and post-merger integration, can also be simplified. It can thus contribute to a significant increase in efficiency and shortening of a company’s overall purchase or sale process.