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The Future of M&A Analytics

The Future of Analytics on Buyer Behavior in M&A

Imagine a world where analytics can not only make work more efficient, but can also make investment banks smarter by providing data to help better understand buyer behavior. This can soon be a reality thanks to DealRoom’s unique project management software and some forward thinking.

We already know DealRoom provides value to M&A stakeholders by promoting a more intelligent way of working and organizing information, but its potential does not end there. In fact, DealRoom has data that could potentially be extracted to help banks analyze buyer behavior better than their competitors.

How can DealRoom change the future of analytics on buyer behavior and better serve banks?

DealRoom’s data story is unique

DealRoom data analytics

The analytics drawn out of one of DealRoom’s data rooms are noteworthy because they provide a complete story of everyone personally touched by the specific M&A deal. If investment banks had the ability to access this data, their analysts could be more efficient. Designating three or four workers to manually extract or track data, can easily lead to human error, resulting in lost data, and, consequently, and lost money. 

DealRoom has the potential to work with banks’ M&A teams to keep track of small, yet valuable, pieces of information. For instance, what was the multiple at the announcement? What was the true forward multiple? How many times has a particular sponsor participated in the bank’s process? 

Finally, the data could be viewed from multiple perspectives, including the sector view and the sponsor view.

Data can easily be extracted and plugged into a CRM M&A platform

At the conclusion of a deal, there are anywhere from 100-200 people in the data room; DealRoom automates the process of putting these contacts into M&A customer relationship management (CRM) and then puts the contacts into a distribution list for the deal announcement. The benefit of this is new leads are automatically created, and the process of generating new business is begun in an effortless way.

Investment banks want to look at data in multiple ways, from sector views to sponsor views to many other angles in between. The data captured in DealRoom's m&a crm could give banks the power to unlock these views, see patterns and then anticipate and better comprehend buyer behavior.

Once a deal is complete, teams can still access and analyze the captured data to help with future strategic decision making. For example, maybe the deal with one buy falls through. However, based on the data captured in the data room, the investment bank can see that another buyer was extremely active in the room. The investment bank knows that the other buyer was strongly interested and should be considered as a viable option.

Or in another scenario, let's say the investment bank closed a deal but throughout the process they had multiple extremely interested buyers. Based on what the other buyers were interested in, the investment bank could predict who may be interested in specific types of deals in the future, instead of having to redo buyer research.

With this in mind, the future of DealRoom’s technology, and more specifically, how it is used, could have the power to change the M&A game for banks, perhaps even for all stakeholders.

Access Deal Information

With the traditional approach to M&A and due diligence, teams usually do a bulk download.  All information is looked at offline and there is no way to know who is looking at what. The benefits are forcing diligence to run through the platform, instead of offline, are enormous.

Software like DealRoom captures all room activity. Teams can use the captured data to make strategic deal decisions. For example, if one buyer has spent 25 hours in the room in the last week but the other two have spent 3 hours in the room, it is safe to say which buyer is more interested.

Another example, if potential buyers are spending a significant amount of time viewing a specific set of documents, teams know which aspects of the deal are more important to focus on.

Many times, junior level investment bankers are tasked with created data room reports. With DealRoom's built-in analytics and reporting, all the work is already done.

Track Due Diligence During the Deal

Deal teams can also easily track due diligence during the deal using analytics. They can see which due diligence requests have been completed, which ones are in progress, high priority items, and more, all within a few clicks. This helps eliminate  back and forth email communication regarding diligence progress.

The requests overview can be broken up by groups (buyers) so you can quickly see what percent of tasks each buyer has completed. Users can see the specific amount of files uploaded, downloaded, and viewed, as well as how many comments have been made by each group.

Depending on the permissions set, users will receive email notifications based on room activity, so they are always up to date. And everything is updated in the room in real time, so no more version control worries.

Analytics DealRoom Captures

Requests Activity - Date Ranges, Groups, Lists Priority, Statuses

• Overdue, Resolved, In Progress, Time Spent, Users Viewed, Requests Views

Document Activity - Dates Range, Groups

• Views, Uploaded, Downloaded

Users can easily filter through the data captured. They can set the specific date ranges, groups, lists, priorities, and statues that they want displayed. Analytics are displayed in different charts, tables, and heat maps, and all data is exportable to Excel or PDF. The audit log is where users can access all room activity in a large list format. Date range, activity time, and user filters are also available for the audit log, as well as an export to Excel option.

DealRoom aims to change the way M&A is done, to make it more modern and for teams to close deals faster. For more information about DealRoom's software capabilities check out our M&A Platform page. Or if you are interested in a platform demo or free trial contact us today.

What is a Corporate Development Tool?

Corporate development software is one of the best ways to help companies manage deal pipelines efficiently and effectively. In M&A deals, there is frequently lots of research and due diligence involved, and large amounts of information to accumulate very quickly.

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