8 Project Management Fundamentals for M&A Success

8 Project Management Fundamentals for a Better Process

Overview

• Communication throughout the Deal's Lifecycle

• Workflow Delegation

• Teamwork Accountability

• Secure File and Document Sharing

• Plan for Post-merger Integration with the Bigger Picture

• Innovation in M&A

• Analytics and Reporting

• Software Integration Capabilities

If there ever was an industry that needed project management software, it would be M&A.

Deals are infamously known for being time consuming, complicated, and extremely intricate, yet constantly happening.  

In 2017, there were over 50,000 transactions announced, with a value of more than $3.5 trillion.

2018 is on track to pass that number, boasting impressive numbers.

As of June, there were already over 33,000 deals announced, valued at over $2.5 trillion, hitting record levels for the first half of the year.

All these transactions require thousands of individuals working together, and even more documents and files, to make the deals close.

How do they keep track of everything?

And of each other?

Shockingly, up until recently, there was no “right way” to manage diligence.

Team were forced to use programs, such as Excel, to manage the process.

They were relying on software that wasn’t designed for M&A, which consistently results in an inefficient process.

Don’t get me wrong, it got the deal done, and continues to get more deals done.

But that doesn’t mean it’s the right way.

Software, like DealRoom, takes crucial project management functionalities, but applies them specifically to M&A.

Project management software truly is a game changer for M&A transactions.

Here are 8 project management fundamentals that can help ensure deal success.

communication during a deal lifecycle
Source: Unsplash

1. Communication throughout the Deal's Lifecycle

One recurring issue that often occurs throughout a deal’s life cycle is the presence of work silos.

Individuals are told to complete tasks or gather information, without knowing who is working on what.

Work silos prevent collaboration, and often lead to duplicate work, lack of information, and a stalled process.

The communication that team members do have, often happens over phone calls, one-off emails, internal chats, etc.

This results is one-off conversations happening over various outlets, where information can easily get lost or be forgotten.

With the right project management tool, all communication goes through one platform.

This leaves a crystal clear path of what decisions have been made, what is coming down the pipeline, and an overall constant flow of communication.

diligence workflow delegation
Source: Unsplash

2. Workflow Delegation

We’ve all heard it.

“Oh, I thought (insert co-worker’s name) was doing it.”

This happens way too often in many work settings, not just M&A.

It’s sometimes unclear what your individual responsibilities are, or vice versa, specifically what isn’t your responsibility, but that of another team member.

Project management allows for delegation.

Team members (like Directors, Managing Directors, Vice Presidents, Associates, and Analysts) can assign tasks such as document transfers, file shares, etc.

Everyone is aware of what is their responsibility, and what isn’t, and can make sure there are no gaps in the workflow.

M&A management team workflow
Source: Unsplash

3. Teamwork Accountability

When delegation is in check, accountability follows.

If an individual is assigned a request or task, their other team members can see that in the platform.

DealRoom for example has a filter feature that allows you to search requests by the assigned user.

People are more likely to follow through with a task when it’s team knowledge that the responsibility belongs to them.

secure file and document sharing for M&A
Source: Unsplash

4. Secure File and Document Sharing

A top priority during diligence is security.

There are thousands of documents and files that need to be collected and stored.

Project management software provides a way to share and transfer files and documents in a safe and secure way.

All parties can know their information is kept confidential and that it is seen by the appropriate people.

post-merger integration bigger picture
Source: Unsplash

5. Plan for Post-merger Integration with the Bigger Picture

Project management software helps teams see the bigger picture.

One common concern during M&A is post-merger integration.

It is often overlooked during diligence.

Project management software helps teams plan for post-merger integration alongside due diligence.

Teams can carefully plan, focus on the deal’s strategic objectives, and identify synergies to maximize the deal’s success, including post-close.

It also helps identify potential bottlenecks before they happen.

M&A software innovation
Source: Unsplash

6. Innovation in M&A

Project management software thrives off innovation.

It is constantly changing and using smart technology to become more efficient.

DealRoom for example uses machine learning to eliminate duplicate requests.

The system automatically pulls up previously related documents and responses to save users time.

Smart search helps users quickly find information or documents by searching keywords or phrases.

Drag-and-drop capabilities enable swift uploading and auto-indexing.

All these smart features help teams become more efficient and Agile.

diligence management analytics reporting

7. Analytics and Reporting

Data is everything.

Using a software with detailed analytics is crucial to understanding how users are behaving.

In M&A for example, sellers can get an idea of which buyers are more engaged, and what they are focusing their attention on.

What’s even better, is when these analytics can be quickly spun into PDF or Excel reports, like with DealRoom.

software integration
Source: Unsplash

8. Software Integration Capabilities

Lastly, project management software that integrates with other common software can help improve your process even further.

For example, many investment banks use SalesForce for their CRM.

DealRoom integrates with SalesForce, allowing teams to combine all the data they catch inside the room with potential new clients in the CRM.

It also integrates with Slack, a quickly-growing communication tool.

Diligence Management Software for M&A

M&A transactions are here to stay and the frequency is on the rise.

Can your current software keep up?

A more organized, efficient, and innovative process can give firms a competitive edge in M&A.

And help them close deals faster.

By
Kison Patel

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