Purpose-Built M&A Software For Advisors


Purpose-Built M&A Software For Advisors

Let's admit it: M&A is a challenge and not for the weak at heart. Every day we hear from teams who are struggling to organize their deals, usually

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Let’s admit it: M&A is a challenge and not for the weak at heart. Every day we hear from teams who are struggling to organize their deals, usually because of broken or ad random procedures and tools. Since the beginning, businesses have relied on spreadsheets or emails as well as homemade solutions to manage their M&A duration, and although they may have worked as alternatives in past times, the fast rate of change and competitive marketplace requires a fresh strategy. “Good enough” is not an acceptable option to be competitive and provide the value we want our deals to deliver.

It’s disappointing that, despite years of learning from M&A We’re still seeing poor results. The following chart, which is based on an analysis conducted by Statista of 750 top executives, shows some of the major causes for why M&A deals and the subsequent integrations don’t yield their anticipated value.

The Need for Speed in M&A

Many of the above reasons are easily addressed by creating and implementing more efficient methods and tools to tackle the problems on both the deal and integration aspects of M&A lifecycle. The complaints we hear the most frequently from M&A teams are:

  • Information is distributed across multiple tools, resulting in multiple possible versions
  • Lack of communication between internal and external stakeholders
  • Processes that are ad-hoc and inconsistent
  • Insufficient visibility into the the progress, risks, issues, and the decisions required
  • Management and accountability are not up to scratch. plans for work and workstream inter and intra-dependencies
  • The disconnection of one-off reports and the insufficient standardization of tools

An earlier article written by Nitin Kumar, an m&a advisory experienced veteran of M&A and M&A, revealed some significant insight. He conducted interviews with over 100 M&A integration executives about the factors that affect the final state of an integration as well as the its value creation. Here are his findings

Nitin continues to explain that:

Affected by inefficient and outdated instruments, M&A teams are ill-equipped to cope with ever-growing demands. Tools have become a burden to control, instead of an aid to the process. It’s time to adopt an improved approach.

Enter Purpose-Built M&A Software

There’s a well-known phrase that applies to M&A, “the longer it takes to integrate a company, the longer it takes to realize the value of the deal.” Concluding deals and integrating or divesting fast is essential to the creation of value in M&A.

Businesses with a long-standing history of merging or acquiring companies realize that emails and spreadsheets are hindering their ability to adapt and swift when it comes to M&A. In the end, specially-designed M&A software is quickly growing in popularity.

We’re frequently asked “when does it make sense to adopt purpose-built M&A software?” The answer is contingent on a variety of aspects:

  • What number of deals do you intend to close in the next year?
  • How complicated are your deals?
  • How many individuals are in the mix?
  • What do you plan to do about deal volume in the coming years?
  • Are inorganic growth and growth strategies a key part to your overall growth plan?

Illustrate the current situation of M&A software industry

Even if you’re only doing one deal and it’s not complex, then a custom-designed M&A software can certainly reduce the risk of a merger and acquisition firms project help you analyze your data better and facilitate more efficient decision-making, and will add value to the entire process.

M&A tools have been in use for a long time, but it wasn’t until recent that people have become aware of the benefits and accelerated their acceptance. There are two main motives for this: 1)) greater awareness of the importance of these tools, and 2.) the increased urgency to be competitive and improve shareholder value.

To illustrate the current situation of M&A software industry, let me make use of the graph below from Gartner that combines a variety of popular curves. While Gartner hasn’t yet officially looked at the market for purpose-built M&A software in its analysis but the majority of M&A CEOs of software companies has been that the market is crossing the Slope of Enlightenment (just beyond 5% acceptance).