M&A Deal Management Software
Stay organized during every phase of the transaction with our deal management software. No matter what phase a deal is in, teams need to be organized and able to see the big picture.
Stay organized during every phase of the transaction with our deal management software. No matter what phase a deal is in, teams need to be organized and able to see the big picture.
The seller’s preparation phase is when the seller makes the business look as appealing as possible to future buyers, so it can be sold for the maximum amount. During this phase potential buyers are identified, as well as a sales strategy.
This is also when all information about the business is collected and placed into a VDR, to be combed through by likely buyers. The VDR inside DealRoom makes initial data collection (often called staging) during this phase efficient, collaborative, and painless.
During this phase, the seller contacts potential buyers to see if they are interested. If they show continued interest, the seller sends them a NDA. If the potential buyers decides to move forward, they sign the NDA and receive the confidential information memorandum.
Next, they send over a letter of intent that typically includes a purchase price and other required critical terms such as payment methods, exclusivity, etc. This stage is where competition may begin between interested buyers.
Once the seller has received offers from possible buyers, diligence begins. The buyers are granted access to the data room to thoroughly research the ins and outs of the company such as legal, financial, risk assessments, operations, human resources etc.
With DealRoom, buyers can be invited into the room as their own “list” and can access, search, and request documents, as well as communicate, all within the platform. This stage is also when site visits and meetings with the management team occur.
Up until this stage, the buyer and seller have agreed to the primary purchase terms such as price and payment method. After due diligence, the primary purchase terms are confirmed or revised, and negotiation on the binding agreement begins.
However, this phase is often started during diligence if the parties are confident that the the primary terms are good to go. The main document that the seller and buyer negotiate is called the Purchase and Sale Agreement. This agreement includes details like:
During this phase additional agreements may be required like non-competes, transitional service agreement, and employee contracts.
The signing and closing phase of a deal begins when the contractual agreement is signed. In order for closing to officially happen, all precedents from the buyer and seller must be met. Examples of typical condition precedents include shareholder, lender, stock exchange, supplier, and customer approval etc.
Once signing is complete, integration can begin. However, integration planning should start taking place months before close.
This phase is critical to a deal’s success, and maximizing its value. The buyer’s main focus is to merge the acquired company with its existing operations as smoothly as possible. However, sometimes the acquired business keeps its own branding and integrates solely for financial reporting.
With DealRoom, the buyer can choose to keep the room open, and all information collected during diligence can be used to assist integration. Also, during this time the buyer needs to complete any follow-up necessary to ensure the seller present accurate information. And if not, determine the damages.
Teams can get organized from day one of a deal. Each task can have an assignee, reviewers, due date, priority status, and more. Users can filter tasks to see who is covering what, high priority items, and communicate with other users within seconds.
One of the main benefits of project management is that everything is kept in one place, and even better, it is conveniently organized. This includes all necessary deal information, diligence documents, and internal company data. Also, DealRoom supports any file type, so when we say we can store all your information, we mean it.
With DealRoom, you’ll no longer need to worry about Excel trackers, one-off emails, or version controls. Our project management software eliminates these common inefficiencies from your deal process. The platform is updated in real time, allows for commenting, and enables all buyer requests to go through one software channel.
