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Features Overview

The smarter way to data request management in M&A

Michael Klawon

01.July 2023

~ mins. reading time

Discover the smarter way to manage data requests in M&A with smartmerger.com. Revolutionizing the process, our platform prioritizes structured data management and advanced team collaboration, leaving behind the limitations of traditional document-driven approaches. With seamless connection between people and data, real-time collaboration, secure sharing, and streamlined workflows, smartmerger.com ensures an efficient and secure M&A experience.

smartmerger.com has revolutionized the way M&A works by prioritizing management of structured data and advanced team collaboration. Classical M&A is very much document driven and organizing the due diligence process around so-called "virtual data rooms" (more precise they are "virtual document rooms"), where the documents are stored. Documents are unstructured data, with the the limitation that you need to extract the relevant information in order to analyze. This is why smartmerger.com is putting structured data first. At the heart of our platform is the ability to seamlessly connect people and data (including documents), allowing for real-time collaboration, secure data sharing, and streamlined workflows.

1) Why does this play an important role in the data request management?

Let's start with the concept of data request management. It is a common practice in any buying process to conduct an "evaluation" of the object to be purchased. The purpose of this evaluation of factors that determine its value, as well as the risks and limitations associated with it. For a comprehensive evaluation, a prepared due diligence checklist that includes all the questions the buyer wants to ask the seller is essential. Ideally, the seller will have anticipated these questions and will have the answers ready. However, these checklists can become comprehensive when acquiring an entire company. In a buy-side transaction where the buyer leads the process, the seller receives a "data request list" listing all information to be provided. The buyer, in order to verify that all the necessary information has been provided and validated, will also maintain his enhanced version of this request list, known as a due diligence (DD) checklist.

Once the information to be exchanged has been identified, the next consideration is the appropriate location for the storage and sharing of sensitive and confidential data. In a traditional M&A transaction, the buyer typically sets up a virtual data room (VDR) that serves as a secure online document repository. The VDR is organized into folders and subfolders that mirror the data request list structure. The set-up implies that the buyer expects to receive documents from the seller. The seller then gathers the requested information, prepares the necessary documents, and uploads them to the VDR. The buyer and his team reviews and validates the documents and will request updates or remind to provide missing information. We intentionally do not cover the remaining steps to complete the purchase process, such as valuation, preparation of the due diligence report, negotiation and signing of the sale and purchase agreement (SPA), because the focus of this article is on data request management.

Example: DD Request list, source: https://rosebiz.com

https://rosebiz.com

Example VDR

Intralinks

This classical data request management requires to maintain at least three different data sources, data request list, checklist and VDR. Often additional tools are necessary for communication, analysis and completion tracking will be added. Managing data provisioning and consistency in all sources is often a manual process perfomed by PMO resources.

2) What makes smartmerger.com different?

A unified system: First of all, we consolidate the management of data requests, the DD checklist and the VDR into a unified, secure online workspace. Our permission control system ensures that each party only has access to the data that is relevant to them. The selling company is invited into the workspace and is guided through the process.

Better guided through the process: Data Request List questionnaires are structured in a hierarchy of nodes and subnodes. Each node's work area is a blank page that we can fill with our Smart Fields. Smartfields are containers that, in the most basic configuration, can be a simple text, an image, or a video. This gives you the ability to create a user friendly guide through the process.
Efficient request data management: With smartmerger.com, users have the ability to submit and manage data requests directly from within the platform. If you allow a "document upload" for a smart field, you can create an in-context data collection process. A user reads the question and attaches the requested document(s). The uniqueness of smartmerger.com, however, is the ability to create a smart field with data entry. This allows you to create input forms, like simple text or number input fields, or even complex online tables to provide lists of information. For example, instead of asking for a document upload for pending litigation, you can create an online spreadsheet with "claim, court, value, accruals, and details" to collect the relevant data in a structured form for each litigation.
Interactive pathways: Smartfield can be configured as a pathway. This provides an interactive question and answer process. For example, "Do you have any pending litigation?" and if the answer is "yes," detailed questions are displayed.
Streamlined process management: This streamlines the process by allowing users to set the workflow state (e.g., "Requested," "Submitted," etc.) and urgency level for each request, track progress, and easily identify pending or completed requests. Because workflow stages are tied to permissions, you can control access and edit permissions by state. For example, you can restrict editing when data is submitted.
Improved collaboration: Instead of relying on traditional e-mail exchanges, smartmerger.com provides a centralized platform for data request management. This eliminates the need for scattered and disorganized communication. It also ensures that all requests are efficiently tracked and processed within the platform. Each smartfield has an in-context discussion threat for markups, comments, and clarifications.
Controlled Access: Smartmerger.com provides granular access controls that allow users to grant or restrict access to specific data based on the sensitivity or relevance of the data. This guarantees confidentiality and data security throughout the M&A process by ensuring that only authorized individuals have access to relevant information.
Data security and compliance: Recognizing the importance of data security in M&A transactions, smartmerger.com makes data security a top priority. The platform ensures compliance with relevant privacy regulations and provides advanced security measures, giving users confidence that their data is protected throughout the process.

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smartmerger.com

Summary

n summary, smartmerger.com differentiates itself in the management of data requests during an M&A process through streamlined communication, efficient request management, controlled access, enhanced collaboration, comprehensive organization and robust data security measures. Together, these features contribute to a more efficient and secure M&A experience for all parties.

Ultimately, an efficient organization is one that makes compliance a priority. By utilizing a high quality M&A platform such as smartmerger.com, companies involved in mergers and acquisitions can demonstrate their commitment to thoroughness and professionalism. Cutting corners is not an option for companies serious about successful dealmaking.

If you would like to discuss or explore the AI potential in your M&A process, feel free to reach out.