Build deal momentum with visibility and control
Stuart Clout, CEO and founder, thedocyard
Anyone who’s ever worked on a deal knows what it feels like when things really start to fly. There’s a magical momentum that develops.
People are doing what they’re meant to be doing, your team is firing on all cylinders, things are moving at a clip. In other words, the deal is getting done.
Like great chemistry, no one really knows how it works. They just know that when it happens, it feels fantastic.
What most of those in the business of deal making do know is what gets in the way of that momentum. People along the chain aren’t getting tasks done on time. The level of engagement just isn’t there.
It turns out, there is a way to make that deal making momentum happen. And a lot comes down to data, visibility and control: all things the latest gen DealTech gives deal makers.
A wider view
Virtual data rooms allowed some fantastic progress to be made in terms of visibility. With activity logs, you could see which documents had been reviewed, by who and for how long. In addition to security, this allowed insights into potential bidders’ level of interest and gave deal makers an opportunity to stay a step ahead in picking up on any potential issues that might come up in negotiations.
But while virtual data rooms can track what’s happening in the virtual data room itself, every dealmaker knows deal management extends far beyond the VDR into what is often a mess of emails.
Even before a data room is opened, there are the early days of the transaction, with potentially months of allocating tasks, and communications between teams. After the data room finishes, there’s the negotiation phase and closing the deal.
Next generation DealTech is helping deal makers get out of their inboxes and into celebrating more wins, providing a new level of insight encompassing the entire lifecycle of the transaction. By providing one secure place where all of the critical information and communication can be found and analysed for insights, it is significantly easier to stay on top of tasks and on top of the game.
Imagine a scenario where you share a spreadsheet to be filled in by a party to the deal. With the latest DealTech you can see their progress. You know exactly where they’re up to and if they’re committed to keeping the process moving along. Without it, you’re totally in the dark until it’s already become a problem.
Or what if your client’s business has multiple bidders. If one’s engagement both in and around the data room is significantly less, you might just decide to check in a little earlier.
If it’s important to track what goes on inside the data room, it’s even more valuable to track what goes on outside of it. With a single source of truth on where everything is up to, in real time, comes the opportunity to intervene and make stuff happen.
An audit advantage
The benefits of visibility and control don’t end with deal momentum. As some say, corporate lawyers are the business pipeline for litigation lawyers.
With data collection across the full life cycle of your transaction, in the data room and beyond, you gain a very powerful data set to help you stay compliant. Workflow automation, which ensures that data points that need to be filled into key documents are automatically and accurately transferred, reduces the risk of that most human of sins – data entry errors. There are advanced permissions capabilities enabling you to know who’s seeing and doing what, at all times. Beyond this, there are comprehensive audit trails to help you avoid, or manage and drive down the cost of, any disputes down the track.
Win on the process as well as the outcome
These features aren’t just nice-to-haves for your team; they add value to help win clients. Rather than a hygiene factor, next generation deal tech becomes part of your value proposition. It’s possible for your clients to love the process as much as the outcome if we just take away some of the all-too-common headaches.
Not only can you offer a more productive team able to reach conclusions faster. You can also promise far greater security and less risk, because things just flow better. DealTech 2.0 means better control over super sensitive client data sets with a secure platform and all communications in one place, not flying around via emails that could go amiss.
The future of DealTech
Dealtech 2.0 is just the beginning when it comes to deal making magic. DealTech 3.0 promises an even more intelligent experience, with a greater insights, analytics, and benchmarking of the deal activities in real time.
Imagine offering your client a real time data feed of all relevant information relative to their transaction. Imagine if the tech could tell you that based on the documentation and data in the system, from your transaction and thousands of others, it suggests your client is probably overpaying. You’re the one to let him know - saving him millions and propelling your reputation into the stratosphere.
Deal momentum is not so magic after all. It’s about visibility and control. But once you experience what it’s like to really be in control of your deal, you’ll definitely feel like you’ve got a superpower.
Click here to learn more about our deal management platform.