Archive

Category Archives for "Blog"

Do You Know Your Bidder?

When discussing M&A, it is often from the perspective of the seller – facilitating smooth due diligence so that your bidder knows everything they need to about you and your business before buying or investing. However, it is just as important to do the due diligence on the sell-side to ensure that you know your bidder and can fully qualify their interest in your company and their plans for its future. Just because a bidder is interested and inquiring about your business that does not mean that they are ready or capable to buy it, so you need to be prepared with all the relevant information about what you’re walking into if you decided to make a deal with a buyer. Here are a few suggestions to keep in mind when on the search:

 

  • Have a definite agreement in place when an investment bank approaches you and claims they have a bidder for your business. This will show that they have done their research on your company and genuinely have an interested buyer rather than opting to find one once you have agreed to sell at an off-hand offer they made without an agreement.

 

  • Take time to do your research on the bidder and uncover any past mergers or acquisitions they may have been a part of and what that reflects about the way they approach these kinds of transactions. This is important in recognizing their behaviour with those they’ve dealt with in the past and anticipating how they will behave with you.

 

  • It’s important to ask your bidder early on how they plan on financing the transaction and if they can provide a commitment letter from their lenders as confirmation. There is no point entertaining a bid that cannot be sufficiently financed later on down the line.

 

  • Know where they are getting their bid from so that you are better able to negotiate with all the necessary information about their decision on a specific number.

 

  • Know why the bidder is interested in your company to begin with and what they are planning to do with it in the long run. Are they simply looking to sell for a higher price a few years later? What do they plan on doing with the current employees? It’s important to know this beforehand because it can drastically affect your decision to sell and for how much.

 

Why A VDR Matters For M&A

When it comes to running a smooth M&A deal with flawless due diligence and seamless collaboration a virtual data room is necessary for the process. It caters to the needs of any industry and allows multiple third parties to stay in contact during arduous and time-consuming projects. While M&A can be done without a virtual data room, the potential confusion and disorganization that would come out of any other platform being used is not worth the risk in the long run. You want to ensure that all the information you share during the deal is kept safe and used to its full potential by necessary third parties. Below are a few reasons why a VDR matters for M&A transactions.

 

  • Efficiency. You want to make your deal easy to manage for everyone involved, including external third parties who are also contributing information or reviewing the documents you have uploaded. Drag and drop uploads as well as reporting features make it much easier to stay on top of what has been uploaded and what is garnering the most attention from potential buyers.

 

  • Accountability. As an M&A advisor your clients want to be able to trust you and your abilities to set them up with a safe and easy to use platform for their deal. As a seller, a buyer wants to know that the necessary and relevant information for a successful M&A is provided on a platform for them to review and decide on.

 

  • Collaboration. A single VDR can host multiple users at once, all uploading relevant information to facilitate a smooth transaction. Q&A functionality common in VDR providers allows these users to ask and answer questions within the platform, making collaboration between parties easier and faster than long email conversations often used as an alternative.

 

  • Security. A trustworthy network and features that keep your information safe is vital and can make or break an M&A transaction. VDRs offer features such as watermarking, revoking document access, and complex permission settings that ensure all data uploaded into the deal room will remain under the control of the administrator for as long as necessary.

 

How To Better Manage Your Finances As A Student

 

We all know that student life can be incredibly difficult on your finances, what with student loan debt and limited time to balance work and school. While this period is stressful there are also a few steps you can take to better manage your finances during this time so that you relieve some of that burden and enjoy university a bit more.

 

 

  • Have A Set Budget

 

 

The first and most important thing you can do when trying to control your spending is setting up a budget and sticking to it relentlessly. In order to do that, however, you need to know how much you are currently spending and how much you will need to spend monthly on necessary expenses. Stay aware of what is going in and out of your bank account so that you are equipped with the knowledge of what you can splurge on and what is better left on your wish list for the next little while.

 

 

  • Save As Much As Possible

 

 

We all love to work hard and then spend that money on the things that we’ve been coveting for a while. However, your bank account will thank you in the long run if instead of spending you try your best to save every chance you get. The key is to recognize what it is that you tend to casually spend your money on and reconsider how important those purchases are to your daily life. Maybe it’s that extra coffee here and there or an impromptu shopping spree that could have been better spent on course books for next semester. Know your retail weaknesses and try to avoid them as much as possible.

 

 

  • Spend Money On What Gives You Value

 

 

It goes unsaid that there are some things that can’t be avoided and that you’ll need to spend money on. In this instance opt to use that money to buy items or experiences that will be of value to you either presently or in the future rather than spending it on haphazard purchases. You can probably skip that expensive dinner if it means you’ll have enough to buy tickets to the concert you’ve been waiting years to see. It’s all about balance and you should learn what works best for you and your monthly income.  

4 Ways To Build A Good Relationship with Your Bidder/Investor During Due Diligence

Due diligence is a tedious process that involves the constant exchange of large amounts of documents and can undoubtedly cause a fair amount of strife between collaborating parties. In order to avoid the stress that comes along with selling your business or finding an investor for it you need to implement a few strategies that will make the entire process easy and enjoyable for all parties. Not only will this alleviate some pressure during an already arduous project, but will also foster a good relationship between yourself and your bidder or investor in the long run. Below are a few simple practices that can improve your collaboration during M&A.

 

 

  • Partner With The Right VDR Provider

 

 

The first step is to find an appropriate and helpful virtual data room provider that will give you the tools necessary to facilitate a smooth M&A transaction. The easiest way to find a VDR provider best suited to your needs is review sites online dedicated to discussing the pros and cons of each company and what they offer to small, mid-market, or large industries. Take the time to do your research and see what it is you’ll need out of your data room so that when your bidder or investor needs to review your documents they can do so without hassle.

 

 

  • Share All Relevant Documents

 

 

When you finally do find the right VDR provider make sure to store all relevant documents to your M&A so that you maintain transparency and accountability during the transaction. Upload your company financials and any litigation in the past or currently occurring so your bidder or investor knows what they are getting into from the get-go.

 

 

  • Know Your Bidder

 

 

Conversely, you should also take time to learn a bit about your bidder and what they can offer you in the long run. Not only will this give you some added information but it will also show the bidder that you are just as serious and invested in the transaction as they are.

 

 

  • Promote Seamless Collaboration

 

 

In order for an investor or bidder to want to take the time and make the effort to invest in or buy your business then you need to provide them with the tools for easy and seamless collaboration. This can come in the form of VDR features, such as Q&A, or quick and easy access to all documents necessary to add their input and complete the deal.

3 Features Of A VDR Review Site That Help You Make A Decision

Deciding on a review site to host your M&A or litigation transactions can be intimidating, which is why many people turn to review sites as a starting point for their search. They provide an easy avenue for getting to know all the virtual data room providers out there and understanding how each one and their features can help you during your deal. When it comes to using a review site to its full potential there are a few key features that all of them contain as a simple way compare and research various virtual data room providers.

 

  • Company Profiles. They offer a complete overview of the company, including their history and the strides they have made in the industry up to now. It’s important to know where a company comes from and where they are headed so that you can decide whether or not you want to partner with them for the long term. These profiles are also a great way to understand what really makes a company tick and how they are catering to their clientele in a unique, but still effective way.

 

  • Comparison Charts. These provide a quick and easy view of all the moving parts within a virtual data room and how each provider is using them to propel each deal forward. They highlight all the key features each provider has and compares them to others that may not be as intuitive or groundbreaking. This allows you a quick glance at which providers are catering to your market and which are looking to host transactions of a different kind.

 

  • Website Links. If all else fails, you can always use the provider links accompanying each profile or comparison to have a more in depth look into a company that has caught your attention. This would be the final step in your search and will allow you to really learn about the provider and their features, as well as contact them for a demo or free trial to test out the data room before subscribing to one.