Driving a faster time-to-value from mergers and acquisitions
Mergers and acquisitions are, in general, complex beasts requiring clarity and diligent execution. Ensuring the successful merger of your business with another requires that you have a deep understanding of four key elements:
- strategic position
- financial data
- operational assets
- legal contracts
The extent to which you are able to identify and clarify these elements during the due diligence phase will have a profound impact on the success of your merger in meeting its defined goals.
During this post I take a closer look at this process and discuss how to significantly reduce the time and effort involved in delivering value from your own mergers and acquisitions.
The challenges of merger & acquisition transactions
Mergers and acquisitions (M&A) involve a substantial amount of research, or due diligence. Before committing to the transaction, any buyer needs to ensure that they fully understand the obligations that they are assuming, the nature and extent of the company’s contingent liabilities, problematic contracts, risks and intellectual property issues, and numerous other elements. Identifying these involves the careful audit and analysis of hundreds, if not thousands of contracts, procedures, and other documents.
Most of the challenges associated with the merger and acquisition process derive from managing this unstructured “big data” – in other words the information contained in the millions of documents and other files scattered around within multiple disconnected content repositories. Typical eDiscovery processes are long and slow, involving many hours of manual effort, and the easier it is to find, analyze, and update documents, the greater the reward.
Optimized processes mean bigger rewards
Financial savings are the essence of most merger and acquisition activities. In order to achieve this objective, assets need to be understood and integrated as quickly as possible. Failure to meet these objectives in a timely fashion not only brings about financial risks, but also puts your customer relationships in jeopardy, risks breaches of M&A compliance rules, and reduces shareholder value.
Processes, contracts, operating procedures and other types of documentation all need to be searched and analyzed as quickly and accurately as possible to identify assets, liabilities and risks. Once located, subsets of this information must then be updated with information relating to the new combined organization.
So the question is, how do you do this efficiently?
Simplifying eDiscovery: search, analyze & update documents with 100% accuracy
For many years, technology has been an enabler within the eDiscovery process. Search tools have enable auditors to quickly search vast amounts of data, but once identified manual processes are still required to validate and update each candidate document. In the ideal world you require a tool that will allow you to search, analyze, review, update and audit changes to content in a substantially more automated fashion – Infinote addresses this need.
Infinote enables you to instantly discover content relationships and provides you with a navigable structure for up to 85% of unstructured content, regardless of the source or location. To be honest, it completely redefines the process of eDiscovery and content updates within M&A scenarios.
Infinote’s powerful search, analysis and reporting capabilities provide a real-time eDiscovery solution, enabling you to search for concepts and browse the results in context instead of simply showing a list of documents containing a particular keyword or phrase. Unlike manual processes, search results are 100% accurate. They are also actionable, meaning that once identified changes can be almost instantaneously made to tens or hundreds of documents. Clauses, paragraphs, and even entire sections are automatically identified and highlighted, enabling you to effectively analyze and update an entire set of documents with only a couple of clicks. Beyond this, complete change logs are generated to ensure compliance with any regulations.
Through the use of Infinote, a merger or acquisition of an organization with around 1000 employees can realize direct financial savings of over $9M and time savings of months. With financial benefits at the core of most acquisitions tools such as Infinote provide you with the means to deliver a significantly faster return on your investment.
To find out more about Infinote take a look at the Infinote product overview, or contact us to discuss your own merger or acquisition scenario.