While companies around are digitizing and optimizing their operating models more than ever, the answer must be even greater control, convenience and speed of conducting processes inside and outside the organization. How to respond to these needs from the perspective of mergers and acquisitions?
After the initial early-spring turmoil, it was fairly quickly concluded that the lockdown would only delay pending transactions and suspend new ones, but would not undermine investment plans and the development of the local economy. The falling stock prices of CEE companies did not cause an avalanche of bankruptcies, although most industries were obviously hit very hard by the restrictions. The pandemic, on the other hand, caused a revolution – and it did it on a global scale – in the companies’ approach to resources, communication, and the way of work organization, often forcing a complete change in their operating strategies. Optimization has gained a special status everywhere.
Since companies have rarely abandoned their long-term plans, the form of implementation of those plans had to change. The M&A industry has asked itself new questions. How to organize the work of specialists in the remote mode? How to reach foreign investors when international travel has been restricted? How to reduce the costs of running the M&A process?
As mergers and acquisitions continue to be realized despite the pandemic, project participants will strive to conduct the Due Diligence processes even more thoroughly while evaluating, for instance, how supply chains of a company work, how successfully the company can work in the remote mode, what is its running financial condition, how effectively it can service its debt and other obligations, and so on.
FORDATA Virtual Data Room is a comprehensive solution in the times of coronavirus. This applies to both the protection of sensitive information and exchange of documents, which is faster and clearly structured. While working remotely and outside the corporate network, the convenience of conducting conversations between the owners, auditors, banks or investors is reaffirmed. The overall process is accelerated no matter its complexity and the number of parties involved.