Many M&A deal teams encounter issues of data fragmentation: data/documents that are duplicated in many places, often updated on a casual basis, and with little clarity as to which copy of the data/document is the most current. Data/documents could cover anything from valuation metrics through to target contact information or responses to due diligence tasks and associated corroborating evidence. Data/documents managed in this way are best described as lacking a single source of truth. Many organizations pursuing M&A are plagued by a number of challenges that stem from not investing in solution that provides a single source of truth.
A Smart M&A Platform provides a single source of truth for all data/documents across M&A projects and the following benefits:
It is not uncommon for a member of a deal team to have their workflow slowed down by not having access to the required data/documents. Too often, the progress of a deal is held up by waiting on the latest version of a document or response – potentially holding up a task by hours or even days. In M&A time is money so this absolutely should not happen. Working with a single source of truth prevents the above problems being encountered – therefore significantly increasing workflow and output.
A deal team should be making their decisions by considering as much relevant and up-to-date data and information as is available. Where there is uncertainty as to the relevance or validity of data/documents (such as if a document to hand is the latest version) a deal team may find it is unable to answer what should be relatively simple, albeit important, questions. Working with a single source of truth improves the speed and heightens the conviction with which decisions are made because team members can work in the confidence that they have the most relevant and up-to-date data and information to hand.
When a single source of truth is lacking it is easy for data/documents to be re-worked/duplicated by multiple team members. Re-working data/documents diverts attention away from more important areas of a deal and results in significant time and cost inefficiencies. Working with a single source of truth means deal teams can spend less time re-working data and documents - again, because they have the confidence that the data/document to hand is the most relevant and up-to-date version.