How Momentum used DealRoom to approach due diligence as an M&A newcomer

DealRoom helped give Momentum confidence to work through the complicated process of a nonprofit merger.

About company

  • Founded in 1945 by a group of parents and volunteers in Los Angeles dedicated to providing resources and services
  • Grew into what it is today: the largest nonprofit provider of direct-care services for adults in Southern California
  • Has over 30 program and service sites providing a variety of individualized resources

Challenges

Momentum approached DealRoom as their Chief Strategy Officer was thrown into a deal. With no deal team, and no prior experience, she wanted to avoid using spreadsheets at all costs to manage the diligence phase. 

Also, she wanted tools to help guide her through the process as much as possible. She also wanted increased security as she knew comprising data would be shared during the diligence process. 

  • Had no deal team and little prior experience
  • Struggling with the unique challenges of a non-profit merger
  • Limited budget for software 
  • Concerns about data security 

Solution

DealRoom’s Due Diligence Template helped build the process for Momentum.

She was able to ease through diligence and use reporting tools to update her board. Any template items not related to her nonprofit organization were easily deleted or modified. Now, she has a repeatable and scalable framework.

  • Due diligence template provides a roadmap to ensure no stone is left unturned
  • Progress overviews and reports help make it easy to generate presentations for board meetings 
  • Permissions controls help admins directly control and track who is interacting with documents
  • Cost-effective plans 

Outcome

DealRoom helped give Momentum confidence to work through the complicated process of a nonprofit merger.

Momentum reported saving time and stress with the buildable template.

Data security was present throughout the whole process, and the permissions settings allowed for documents to be seen only by necessary parties and no one else.  

  • Able to save time and stress using DealRoom’s due diligence template
  • Data security could be proven to their board and target
  • The emotional aspects and fears associated with deals were greatly reduced due to clear and consistent communication regarding requests.
I would definitely recommend DealRoom to anybody in a similar position as I was - those who are not as familiar with M&A. Having a tool to manage and guide through the process has made it much easier than otherwise. I can’t stress enough how intuitive the program is. It provides a robust skeleton of the due diligence process and I am confident it saved hours of time and frustration.
Becky Hansen
Chief Strategy Officer at Momentum

Customer

Momentum

Industry

Social assistance and protection

COMPANY SIZE

1000 employees

Location

United States, California

PRODUCT SOLUTIONS

Developmental Disabilities, Cerebral Palsy, Health Services, Human Services, Property Management и Housing and Urban Development (HUD)

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