M&A What are the benefits of the FORDATA system in M&A processes?

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?

Global opportunities for mergers and acquisitions are expected to remain firm after the initial lockdown, as pointed out by PwC, but the new and the ongoing transactions will have to adapt to the new circumstances. Not every region looks equally promising, though. Whereas Latin America is still struggling with the effects of the pandemic, the CEE area, which reopened relatively quickly, now looks like one of the few larger regions surviving the pandemic that investors look at with high hopes.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?

If you are a company owner in the process of or planning to sell your company, FORDATA VDR will enable you to:

• Faster close the transaction and negotiations with many investors simultaneously
• Reach new investors, also from abroad
• Reduce the costs of process organization
• Increase the company’s valuation and allow the possibility of participating in the transaction to investors from all over the world, 24/7
• Share only those documents that you want to share with the investors, nothing more
• Discover the true intentions of investors thanks to collective activity reports
• Get peace of mind – no documents will get into the wrong hands, neither during the transaction, nor after its completion

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.
All of this is happening in the quickly-changing circumstances the pandemic is imposing on economies, which require even closer communication and swift information exchange. FORDATA will answer these needs accordingly thanks to the way we approach to speed and usability. If your deal includes, for instance, MAC agreements, you can rely on the built-in Q&A module, fast data transfers, proactive customer support and more options in the ongoing analysis of the company’s condition to make informed decisions.

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.

Learn more about the advantages of Virtual Data Room in the processes of mergers and acquisitions, as well as the organization of work of enterprises, from the page describing the VDR benefits. You might also want to read our article Restructuring and the pandemic – accelerated digitalization.