What Is M&A Integration and How Can It Help Your Business?

by Staff

Description: M&A Integration is a process that allows a company to expand its presence in an existing market, enter a new market, increase its influence and obtain additional resources. All this happens by combining efforts and structures with another company. However, merging structures and building a common working system is not an easy task, requiring time and resources. Virtual data rooms help make it easier.

​What Is M&A Integration and How Can It Help Your Business?

M&A Integration is a process that allows a company to expand its presence in an existing market, enter a new market, increase its influence and gain additional resources through acquisition and integration with another company. It is certainly a necessary and useful process, but a lot of time and effort is required for successful post-merger integration (PMI). Certainly, it pays off in the long run, but the process requires maximum focus and dedication. Data room services are a serious help in this.

​Why M&A Integrations are important for business development

Mergers and acquisitions are processes of combining two separate legal entities into one: in the case of a merger, two companies form a certain third legal entity; in the case of a takeover, one company takes ownership of the assets of the other. In both cases, the creation of common systems of management, distribution of finances, logistics, and so on is implied.

M&A Integration, or post-merger integration, is precisely the process of creating common systems. Successful integration, in fact, is the goal of M&A procedures. It is not enough just to close the deal – it is necessary to properly manage its results.

So what are the benefits of M&A Integration?

  • expanding market presence;
  • the ability to enter new markets;
  • increase in capital and influence;
  • changing the nature and direction of the business (if necessary);
  • improving the competitive position.

It should be taken into account that the integration process is very complex and takes on average several months. However, there are tools that can significantly simplify it – virtual data rooms.

​How can data room software help in the post-merger integration process?

The electronic data room is an indispensable tool for many business processes: licensing, certification, and even clinical trials. However, one of its main purposes is precisely M&A integration. So what exactly is a virtual data room, and how can it help in this process?

The Virtual Data Room (VDR) is a service that uses cloud technology to store, transfer and edit documents. This is the main, but far from the only, function of VDRs. in addition to document storage, such platforms allow customization of access to documents, watermarking, recognition of text from images, protection of documents from copying and downloading, activity logging, analysis of statistics, and much more. VDR platforms can greatly simplify document management and save a lot of time and effort.

What are the main advantages of VDRs?

  • high speed of document turnover;
  • reliable protection of all documents at all levels: regular backups, virus checks, document watermarking, remote document deletion, copy protection and much more;
  • ability to work with the cloud service remotely – at any time from anywhere in the world, and if the platform has a mobile application – from any device.

Obviously, this type of technology greatly simplifies and speeds up even such complex processes as post-merger integration. However, in order for VDRs to be truly effective, you need to choose the right online data room software.

​How to choose the right virtual data room?

There is a huge number of virtual data room providers on today’s market. Let’s do a little data room review and take a look at the features and advantages of the most well-known and popular platforms.

  1. iDeals. One of the best data room vendors; iDeals platform is versatile, perfectly suited for both large and small businesses, enabling many business processes, including mergers and acquisitions. Provides document security (watermarks, backups, virus protection, copy and download blocking) and maximum ease of use. It has a simple and accessible interface, it is supported by all popular operating systems and devices, and offers its own mobile application. You can download a free 14-day trial version from the provider’s website.
  2. Ansarada. Australian provider of versatile and quality merger and acquisition software. Among the security features, it offers backup, anti-virus checks, custom access settings, document validity settings, watermarks and copy protection. The platform is available on all popular operating systems except Linux. The platform also has a smartphone version for both Android and iOS. The interface is simple and full of useful features – optical character recognition, a convenient filter system, search by document name and content, and much more. A free 14-day trial version is available.
  3. DealRoom. Software designed specifically for dealing with mergers and acquisitions. DealRoom offers its users a wide range of features and functions: secure file browsing, integrated search, optical character recognition and much more. In terms of security, this platform also has a lot to offer: watermarks, copy and download protection, remote file destruction, and flexible individual access settings.

Mergers and acquisitions and subsequent integration processes require the best tools to work on them. So don’t skimp on a quality virtual data room.

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The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.

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