M&A is the current dynamic trend in the development of modern corporations. The main reason for the rapid increase in this trend is a competition that forces businesses to actively seek investment opportunities, effectively use all available resources, and optimize costs. So, in this article, we will compare the functionality of CRM and VDR services and their role in M&A deals.
CRM or VDR?
Mergers and acquisitions are an effective mechanism for doing business, which has become firmly established in the practice of company development. Depending on the goals of corporations, M&A allows to strengthen its position in the market, create new competitive advantages, enter new markets sales, acquire the missing competencies, radically change the key parameters of the activity and improve the structure.
Technological transactions with special specifics, in most cases, are viewed as traditional transactions in the M&A market, although they require special attention and a strategic approach on the part of companies interested in achieving sustainable advantages. Thus, ancillary services like CRM or data rooms that store your data play an important role in conducting M&A transactions.
A CRM system is software that helps to build a dialogue with customers as efficiently as possible and, as a result, increases product sales. The platform contains all the necessary information about users and the chronology of work with them – that is why this system is being implemented in many companies.
The tool allows you to divide the transaction process into the required number of stages, to build tactics of interaction on each of them, as well as to evaluate the effectiveness of managers.
The system will be able to take over:
- formation of documents by template;
- setting tasks for managers;
- keeping track of important dates;
- sending SMS messages to clients;
- creating online reports;
- calculation of the cost of services.
In turn, Data Room is an easy way to collect data and provide access to it (including shared access via the Internet) with the ability to scale resources. This kind of service enhances versatility, provides a global scale, and allows you to get data anytime, in any place. The intended use is to store backups of files, sites, databases, as well as just static content.
5 Reasons to choose VDR
Many existing Virtual Data Room utilities are very expensive, very expensive to set up, difficult to learn and cause many maintenance problems. But some of them provide tremendous basic benefits. This promises to save money, reduce overhead, and solve service problems. Some of the unique benefits of VDR are as follows:
- This solution is easy to set up, has no maintenance issues, is easy to customize, and does not require the involvement of already busy IT departments.
- VDR opens up global markets for acquisitions, mergers and acquisitions, and real estate contracts versus direct and paper-based transactions.
- You can access VDR 24/7 from any web browser. Important information can only be seen after authentication and authorization.
- The VDR can be accessed from anywhere immediately, making the process of due diligence noticeably faster.
- Provides administrative reports with a full audit of all uploaded files, and bidder logins, and tracking and alerting feature that confirms whether a client has received files or not.