How can deal teams work efficiently?

There’s no getting around it—mergers & acquisitions are a hard thing to get right.

There’s no getting around it—mergers & acquisitions are a hard thing to get right.

According to recent studies by PWC and Deloitte, almost half of all M&A deals fail to meet both value targets and operational objectives. Of the myriad factors at play during these projects, one stands out as particularly crucial to venture success: efficient collaboration.

In the modern M&A landscape there is more diversity than ever when it comes to varying work styles. This is undoubtedly a constructive change, however it can pose issues when diverse parties must inevitably come together to flesh out the demands of a deal.

In order to overcome the difficulties of integrating work across multiple teams, firms need a collaborative working platform. By utilising deal management technologies such as thedocyard, M&A dealers can build streamlined and efficient workflows that get the job done.

One size does not fit all

We’ve all been in situations where our individual work style does not fully match that of a team member, and have thus been forced to adapt. This doesn’t always come naturally, and brings with it a number of associated difficulties and frustrations.

The same principle applies between parties in M&A deals, but on a far wider scale. Differences in workflow processes become even more pronounced when entirely separate teams must work together, and team-wide practices remain notoriously difficult to adapt.

If not properly managed, issues of miscommunication and inefficiency can abound in these environments. As such, it is essential that dealmakers foster systematic collaboration between teams to ensure maximum productivity. This is no simple goal, but experience shows that a centralised workflow platform can be a major asset in promoting efficiency.

The virtual data room is dead

In days of old, M&A deals were conducted via the use of physical data rooms; securely monitored spaces in which parties could access documents and data relevant to the transaction, in-person only. Then, virtual data rooms replaced their less-efficient physical predecessors.

Now, we have end to end deal management platforms. These secure online platforms go beyond traditional information sharing (be it virtual or otherwise), and incorporate a wealth of practical tools and features that are invaluable for facilitating inter-party collaboration.

Virtual data rooms provided a reliable and efficient means of securely sharing information instantly, irrespective of geographic location, but that was only part of the problem – getting things done, knowing where things are up to, mapping and repeating processes deal after deal – these have been the things holding up the sector. With true deal management technology teams are able to collaborate on tasks in real-time, and can easily view the status of any relevant deliverables. Further, entire workflows can be digitised via a central platform capable of tracking and managing all tasks to completion.

These features are incredibly powerful in supporting teams to overcome the challenges of inter-party M&A dealing, as they provide a centralised workflow platform. Thus, the implementation of a deal management technology has potential to provide immense value—if applied effectively.

Efficiency through collaboration

As we have established, effective communication and cooperation between various parties in an M&A transaction can be difficult. This is where a centralised workflow platform comes in—to help break down barriers between teams and boost efficiency through collaboration.

By creating a centralised virtual space that all parties can easily access and contribute to, M&A dealers ease the flow of information between separate teams to encourage increased openness and engagement. By rationalising virtual communication channels and facilitating remote collaborative work between teams, these systems invariably strengthen inter-party dealings and raise overall output.

With multiple teams working more efficiently together, deals are not only closed faster, but also better. A more collaborative approach leads to improved outcomes in all areas of a project, particularly post-merger integration—an area regularly cited as the most critical to merger success.

One efficient workflow

With more efficient collaboration comes greater harmony between disparate merger teams. In order to capitalise on this, a centralised workflow platform can also be used to synthesise independent workstreams into one streamlined, efficient flow. This will mean work gets done faster, and deals will run smoother—everybody wins.

Having systems in place that centralise tasks across teams not only improves collective output, but makes work easier to analyse, manage and direct. This allows dealmakers to better understand and guide their projects from the ground up, ensuring any major issues are identified early and that risk is effectively mitigated. Overall, a centralised workflow platform is the perfect tool to ensure deal projects work efficiently, even with multiple teams.

Thanks for reading! If you feel like your next deal could benefit from any of the strategies discussed above, click here to try a free 30-day trial of thedocyard. More than just a data room, this platform incorporates all the tools you need to construct a fully collaborative and efficient workflow for any project type. I hope you enjoy your trial, and until next time—all the best!