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Chapter 3.5 | Reporting

If an organization lacks a proper reporting processes for M&A it risks encountering problems such as (i) information bottlenecks (ii) siloed information (iii) slow decision making (iv) key decision makers not being informed of progress. The Analogue approach to reporting on the progress/status of a deal is characterized by a number of disparate tools being pieced together – information may be stored across hard drives, Excel files, emails and on phone note scribbles. One popular approach to M&A reporting that may sound familiar is copy and pasting email excerpts and Excel charts, tables and task tracker summaries into a PowerPoint, which inevitably will become out of date within minutes. Any organization reporting on deals in this way does so at their peril.

The reporting requirement across an organization differ depending on the audience in question – for instance, while the Steering/Deal Committee will typically be interested in high-level progress/status updates, business unit leads will require visibility of specific business/region KPIs, while those working on everyday deal management will have very detailed reporting requirements going down to the specific task level. On this point, a benefit of a Smart M&A Platform is that the Platform aggregates status/progress information from subprojects to stream level and from streams to IMO – meaning that all individuals involved in a deal can view exactly what is relevant to them.

Typical reporting levels and requirements across an organization may be as follows:

Midaxo Pyramid

Reporting through a Smart M&A platform enables an audience to easily:

  • Understand the latest deal developments at varying degrees of detail;
  • Understand open issues/risks and discuss corrective actions across a deal;
  • Agree on next steps of a deal.

Example deal reporting metrics and KPIs that can be captured by a Smart M&A Platform include:

  • Where a target is in the deal lifecycle (e.g. Initial Evaluation or Due Diligence, etc.);
  • How many tasks have been completed versus how many are outstanding across Due Diligence;
  • Issues flagged and the Status, Severity, Probability and suggested corrective action – all of which are captured by a real-time Issues Log;
  • Why targets are falling out of a deal pipeline and at what stage;
  • Composition of an M&A pipeline across business unit, geography, value driver, reason for rejecting, etc.