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Learning points from 1001 transactions [Webinar Highlights]

How does the number of counterparties affect the M&A process? Why is there an increase in launch failures in the last couple of years? And how do you actually measure M&A success? These and related topics are discussed in our webinar: “Learning points from 1001 transactions”.

You can access the webinar recording and slides here. If you prefer reading, continue on this blog post to learn more about three topics discussed in the webinar: The average life span of a data room, counterparties and deal complexity and how to measure M&A success.

 

The average data room life span

Based on our data, the average transaction process looks like this:

The preparation phase takes close to a month (29 days on average) before the counterparties (potential buyers) are invited into the data room. The Q&A (questions and answers) process lasts for about 1,5 months (47 days on average). After an average of 9 months, the data room closes.

data room transaction timeline

The average data room life span and it’s six steps

In 2019, we have noted some changes from previous years:

  • Earlier this year we changed our pricing model, from semi-annual to monthly fees. This has increased the flexibility in the process, and we see that this is affecting the lifetime of the data room: the average duration is decreasing, from 9 months to 7 months.
  • We also see an increase in the number of preparation portals in 2019. 20 % of new portals opened this year, are preparation portals.

Currently, there are 155 portals in our system that are not yet launched, so we are likely to see a lot of M&A activity during the fall.

 

Counterparties and deal complexity

64 % of the transactions in our data set, had only one counterparty (potential buyer). The data set covers a variety of processes, from small real estate transactions to large M&As.

However, we do see that the number of counterparties affects the process in several ways. Such as:

  • Process duration
  • Number of users
  • Q&A duration and numbers of questions
  • Use of the Gatekeeper functionality
data room users and user types

On average, we see that data room lifetime increases with the number of counterparties (buyer groups) involved

 

How to measure M&A success?

In the second part of the webinar, Admincontrol’s own M&A story was on the agenda. One thing that was discussed was how to measure M&A success.

A successful M&A process is certainly more than a completed transaction. Other metrics to look at include: 

  • Value realization according to expectations
  • Ability to preserve growth trajectory and margins with new ownership
  • Ensure low customer and employee churn, preserve company culture and value creation

Access the webinar recording to hear more about the steps to a successful M&A.

Get webinar recording & slides

Learning Points from 1001 Transactions

Register here access the webinar recordings and presentation slides.
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This webinar was the first of several sessions in our webinar series on topics related to M&A. More webinars coming this fall and winter. 


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How our customers use data rooms

 

Steps of the M&A Process