Coordinating international buy-side teams in M&A

Navigating the complexities of coordinating international teams in buy-side mergers and acquisitions (M&A) transactions presents a variety of specific challenges. This is especially true when negotiating multiple targets simultaneously with one (financial or strategic) investor. Here you have to deal with various targets and stakeholders such as the targets’ legal professionals and tax advisors, sell-side M&A advisors, and management on the side of buyers (managing directors, department heads, board members). 

Additionally, responsibilities may extend to working with regulators like the Federal Cartel Office in Germany, for example. As a buy-side adviser, the task extends beyond pure transactional guidance – it demands effective management of people, processes and communication channels. 

A strategic approach is needed to effectively manage the complexity of international M&A. 

The following tasks need to be taken care of:

• Coordinating communication – all directions;
  
  
• Coordinating data flow – valuation, non-binding offers (NBOs), letters of intent (LOIs), term sheets, schedules;
  
  
• Coordinating due diligences – tax, legal, commercial, finance, IT; and
  
  
• Coordinating with the drafting of sale and purchase agreements (SPAs) and asset purchase agreements (APAs) with the legal teams of buyers and sellers.

An Integrated data room provider in all directions as part of the solution

In order to meet the special challenges of buy-side M&A processes with multiple targets, the use of an integrated data room provider (IDRP) is part of a strategic solution. The solution should go beyond just managing the process with the seller but also integrate communication between all representatives of buyer-involved management as well as buyer advisors. In this scenario, when dealing with multiple targets, a data room provider is also advantageous for communication with these parties.

The concept involves the M&A advisor initiating the data room where the transaction details are stored, which also ensures a transparent exchange with the whole buyer-side team.

The main benefit is that the entire buyer team can access the data room and gain insights into the real-time status of all documents and transactions. In addition, the system enables selective sharing, ensuring the confidentiality of sensitive information. This kind of a IDPR use makes communication more effective and enables effective collaboration throughout the M&A transaction.

Sven Dierking is a business consultant and managing partner at Gehrke Econ. He has over 20 years of experience in management consulting, with a strong focus on corporate finance, in particular advising owner-managed SMEs.