Over the last five years, customer relationship management software, known as CRM, has made an impressive entrance into many varying industries. CRM technology is used by organizations to manage customer relationships and interactions, with the overall goal of advancing stronger and more effective market communications.
Although CRM tools have been effective in many industries, mergers and acquisitions require very strict and specific functionality to manage costly deals and delicate stakeholder interactions. Traditional CRM platforms simply do not provide key aspects needed to close successful M&A deals efficiently and equitably.
Deal practitioners must begin using tools designed specifically for industry needs and pain points. Fortunately, M&A CRM software is tailored expressly for M&A processes and is being adapted by industry leaders to modernizing traditional approaches. The following reasons highlight why industry-tailored platforms will always outperform traditional, universal CRM software.
A successful M&A deal requires the effective collaboration between many internal team members and external stakeholders. The due diligence process demands constant communication between the buyer and seller, with an investment bank likely in the middle to add needed structure and analysis. Documents and information must be swiftly sent, received and assessed to advance the needs of the deal and ensure value creation. Traditional CRMs lack the functionality required to manage this delicate collaboration or to track important information and documents.
M&A CRM Software designed specifically for the M&A process is equipped with an interface that enables teams to communicate, collect data and track progress on one, centralized platform. These platforms eliminate the need for one-off emails and Excel trackers. They provide the best CRM for investment bankers, stakeholders and deal success.
Setting permissions for who can view which documents is an incredibly important security feature that M&A CRMs provide over traditional CRMs. There are many influencers, such as the potential buyers and sellers, contributing to a deal. Each party requires their own set of permissions regarding the files and information they are able to access.
Traditional CRMs do not allow users to restrict certain documents from view, while deal CRM solutions made for M&A do. This enables deal security, enhanced efficiency and peace of mind.
M&A practitioners ultimately need a platform tailored to the nature of complex, information-dense and high-cost deals. While traditional CRM technology is useful for industries with sales-oriented processes, they lack the functionality required to adequately manage the sensitive and costly needs of M&A.
Using a M&A CRM tool designed specifically for deal processes will target and solve industry-wide pain points such as collecting diligence documents, communicating effectively between buyers and sellers and internally managing priorities. They include functions tailored to the industry’s project management needs such as drag-and-drop, document requests, the ability to set priorities and task assignment. Traditional CRMs simply do not have these capabilities as they were developed for customer sales and maintenance.
During M&A transactions, copious amounts of sensitive information and documents are exchanged between key stakeholders. M&A practitioners need a secure data room designed to store vital information for a successful deal and limited risk. A conventional CRM is simply not designed to secure or store such information and deals should be managed on investor CRM software with the appropriate security certifications.
Secure CRMs designed for M&A transactions also include customizable document permissions, watermarking and view-only access. These necessary security functions reduce any legal risks and deal complications.
Many platforms designed to manage M&A provide deal analytics that enable direction and important insight throughout the deal’s lifecycle. Deal CRMs develop analytics such as; which prospective buyers are most active, which tasks are most important and need to be completed, and which documents are viewed most. Not only do these analytics prevent bottleneck during the deal, they can greatly inform direction and facilitate a successful integration.
M&A professionals and stakeholders deserve a platform designed for their needs and specific pain points. While traditional CRM software can be useful to other industries, the high-pressure, complex and ever-changing nature of the M&A industry calls for something more advanced and targeted.
Unlike traditional CRMs, M&A platforms like DealRoom include the following features expressly tailored for M&A processes:
Deal CRM platforms give dealmakers the ability to better manage M&A transactions throughout their entire life cycle. Deal CRMs are designed explicitly for deal stakeholders, corporate development professionals, investment bankers, and private equity practitioners. With a broad-range of functionality, these targeted M&A CRM platforms create collaborative, secure, efficient, and successful deals.