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How to Work with Banks in DealRoom

Supritha Shankar Rao
Product Marketing Specialist

Mergers and acquisitions (M&A) are complex transactions involving numerous stakeholders, including legal teams, corporate executives, and banks. When a deal involves banks, the complexity increases due to the need for stringent documentation, secure communication, and meticulous financial tracking. Effectively coordinating with banks is crucial to ensure a smooth and successful transaction. 

This is where the DealRoom M&A Optimization Platform becomes invaluable. Designed to streamline and enhance the entire M&A process, DealRoom provides the necessary infrastructure to manage documents, communication, and workflows efficiently.

In this blog, we'll explore how to work effectively with banks using DealRoom, supported by real-world scenarios and customer testimonials that highlight its benefits and best practices from start to finish.

Understanding DealRoom

DealRoom is a comprehensive M&A lifecycle management platform that optimizes and centralizes the entire M&A process. Used by investment bankers, corporate development teams, and private equity firms, DealRoom enhances collaboration, increases transparency, and ensures accountability throughout the deal cycle.

The Power of DealRoom When Working with Banks

When working with banks during an M&A transaction, DealRoom offers significant advantages throughout the entire process, from initial discussions to post-deal integration. Watch How M&A Leaders from EIS, Bayada, and Polygon work with banks using DealRoom. 

1. Centralized Information and Transparent Communication  

One key benefit of using DealRoom is that all M&A documentation and communication is centralized. This ensures that everyone, including banks, has access to the same real-time information, reducing the risk of information gaps.

John Palusci, Division Director of Transformation Finance from Bayada, shared-

"DealRoom has been huge for us. Everyone knows exactly where they are doing, what needs to get done, and what’s late."

This centralization streamlines workflows and enhances organization, making it easier to track everything, including status and escalations.

2. Granular Permissioning and Enhanced Security

Security is paramount in M&A transactions, especially when banks are involved. DealRoom's granular permissions allow only those who need to see certain documents to access them. This ensures the protection of sensitive information while maintaining an efficient workflow, which is particularly important when dealing with banks that handle highly confidential information.

3. Version Control

DealRoom automatically tracks all document versions, ensuring everyone can access the latest information and document any changes. This increases accountability and allows banks to rely on this feature to ensure all parties have the most up-to-date information, reducing the risk of errors and miscommunication.

4. Synchronized Diligence and Day One Readiness

With DealRoom, you can start preparing for Day One during the diligence process by empowering Integration teams with seamless access to all diligence documents.  This ensures no information is lost during the transition from diligence to integration phases. This is also crucial for banks, as they must ensure that all financial and legal details are meticulously tracked and managed.

Overcoming Challenges with Banks: Navigating the Pre-LOI and Post-LOI Transition

Working with banks in an M&A process often involves navigating their preferred systems and procedures, especially before the Letter of Intent (LOI) is signed. Banks might insist on using their own data rooms and systems, which can create initial hurdles. However, transitioning to DealRoom post-LOI is essential for streamlining the integration and ensuring a unified process.

Tyler Rodewald, VP of Mergers and Acquisitions from EIS Holdings, noted, 

"Pre-LOI, fine, use your platform. But post-LOI, it’s our process. DealRoom ensures everything is centralized and accessible, reducing manual labor and increasing efficiency."

"The golden rule is that those with the gold make the rules." This adage is particularly relevant in M&A transactions. The buyer should emphasize using DealRoom to ensure efficiency and transparency. Switching to DealRoom after establishing exclusivity allows you to centralize all information, maintain security with specific permissions, and track all document versions.

Matt Melsen, Director of Corporate Development at SPS Commerce, shared how he navigates these challenges: 

"Having everything in one central location is better for sellers post-closing. It reduces the risk of information gaps and ensures a smooth transition."

In cases where banks insist on using their own data rooms before the LOI is signed, Matt's team manually downloads and uploads documents to DealRoom. While not ideal, this process ensures a seamless and practical transition to DealRoom post-LOI.

Benefits of Using DealRoom with Banks

To summarize, here are the key benefits of using DealRoom when working with banks:

  • Centralized Platform: All documents and communications are in one place, ensuring everyone can access the same information.
  • Clear Communication: Transparent interactions reduce misunderstandings and streamline the process.
  • Granular Permission: Enhanced security by allowing only those who need access to see specific documents.
  • Accountability: Automated version control and detailed tracking increase accountability.
  • Synchronized diligence & day one readiness: Easier transition from diligence to integration phases, ensuring no loss of information.

Working with banks during M&A transactions can be streamlined and optimized using DealRoom's M&A Optimization Platform. By centralizing information, ensuring transparent communication, enhancing security with granular permissions, and increasing accountability, DealRoom makes the entire process more efficient. Encourage your banking partners to use DealRoom for a seamless and practical M&A experience. 

Visit the DealRoom M&A Optimization Platform page to explore our features and see how we can help you optimize your M&A processes.

Contact M&A Science to learn more

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