Middle Market M & A, 2nd Edition

CHAPTER 10Technology in the M&A Process

At its core, M&A in the middle market is largely about two or more parties aligning around business and deal concepts in a time frame that meets the goals of each. Usually, this alignment comes about because of analysis, communications, and relationships enabled by trust, confidence, and capital. Technology can be used to manage and support the deal process to bring about this alignment by improving the efficiency and timeliness of the process with fewer mistakes and greater clarity for both parties. For M&A, software solutions and technology applications range in function from planning and improving the realizable value of a company to planning the M&A process and then collaborating throughout; identifying targets (both buyers and sellers); valuing the business; sharing the business case and opportunity; enabling secure file and data sharing; conducting due diligence; improving and enhancing communication; negotiating definitive documents; and finally, working through the mechanics of closing. To facilitate the discussion of these solutions, we have identified seven broad categories to define the evolving landscape. Figure 10.1 provides a framework and context to visualize those topic areas and to share examples of solutions by name that fall within each.^a No doubt, some of these applications may be used in multiple categories and cross over each other depending on the actual project. In this chapter, we will review the use of technology ...