You’re a financial advisor in a merger and acquisition (M&A) transaction for a Chinese client seeking to invest overseas. Your client sends its team consisting of members from its corporate finance and legal departments, in addition to foreign legal counsel to review the due diligence process. You have to coordinate the foreign team, the decision-makers based in China and the sellers.
How do you manage the information flow? What can you do to be more competitive during the bidding process?
M&A in cross-border transactions
When dealing with a cross-border M&A, bringing together international buyers and sellers, dealmakers are tasked with executing the transaction competently, seamlessly and quickly. Docutone DataRoom connects all parties in real-time to professionally manage the due diligence process.
A VDR is an industry best-practice tool used to share and monitor documents as they are filed for scrutiny, and control the flow of information to protect the privacy of the parties concerned. It is commonly used in regulated industries, especially in the capital-markets space for efficient due diligence for complex transactions.
So how does it work?
As an advisor to this deal, you create a VDR branded under your firm’s or your client’s company name. You then set up the VDR index where potential overseas sellers can upload their documents in an organised way. Setting up a well-planned index means that you can easily check if the seller has provided all due diligence documents needed for review.
When all the documents are in place, your clients can go through their due diligence process in a systematic way. Your deal moves quickly. Question-and-answer forums are streamlined and secure. Sellers can also rest assured that their highly sensitive information is being handled with discretion and without breaches.
Especially with cross-border transactions, it is vital that data access is seamless within and outside China. Overseas sellers must be able to upload their documents to the VDR with speed where the decision-makers in China can access these documents securely and without any delayed connectivity issues. Docutone VDR is built for a global user base, with speed and connectivity guaranteed regardless of a user’s physical location.
A record year for Chinese M&A 2018?
As analysts look to strong outbound deals in technology, industrial and consumer products, it remains critical that financial advisory firms address due diligence processes competently, using new technologies and best practices.