Strategic Delegation: Case Studies On Outsourcing in M&A

Outsourcing certain aspects of mergers, acquisitions (M&A) or other complex financing transactions has become necessary for dealmakers looking to accelerate and safeguard deal execution.

In today’s dynamic landscape, where deals face a litany of headwinds, the importance of efficiency while maintaining accuracy and compliance cannot be overstated. With this in mind, savvy investment banking and corporate development teams are refocusing their efforts on core competencies and strategic decision-making by establishing successful partnerships with managed service providers to help navigate the complexities in the M&A and financing process. For a growing number of dealmakers, delegating critical but tedious and repetitive tasks like document redactions, translations and the negotiation of non-disclosure agreements (NDAs) has become the obvious answer to freeing up valuable time and resources while mitigating risk.

Our recently published white paper, The New Outsourcing In Action: Case Studies On Transforming Deal Processes, Minimizing Risk and Maximizing ROI, takes an in-depth look at real-world case studies of deal teams leveraging outsourcing to transform their approach to closing transactions and completing complex projects.

The stories featured in the white paper discuss how deal teams overcame obstacles in their process by turning to trusted managed services partners to take on redaction, translation, NDA management and documentation work. In these instances, outsourcing these tasks was the key to swift and successful deal closing. Below are highlights from these stories.

German retailer divests a business unit with fast and thorough document redaction

A Germany-based retailer was seeking to divest one of its business units to a competitor. The business unit held significant assets, including lease agreements for more than 300 retail shops, so ensuring this sensitive information remained confidential was paramount.

Knowing that their deal team lacked the time and capacity to review and redact the confidential data, the retailer turned to their technology partner whose virtual data room (VDR) the deal team was already using for the transaction. The partner offered innovative redaction services with AI technology to review thousands of files and pages for accuracy and quality control, enabling the retailer to focus on successfully closing the sale. Read more.

Advisory firm closes a deal contingent upon last-minute document translations

A French advisory firm engaged in the sale of a French healthcare company needed to outsource translation services for a down-to-the-wire turnaround of documents required for an English-speaking potential buyer who expressed interest late in the process. Hiring a translator was not a cost-effective option, so the firm turned to their trusted VDR partner whose managed services included document translations with machine language capabilities and professional translator certification. Not only did the provider meet the deal team’s urgent request in record time, but it also saved the firm more than 90 percent in cost and time savings. Learn how.

New York City advisory firm mitigates legal risk with efficient NDA management

A New York City-based investment bank was advising on the sale of a private equity-backed company. The transaction required reaching out to numerous potential strategic buyers, drafting NDAs and making countless rounds of revisions. The bank’s team could not take on this complex task without negatively impacting the time required to execute the deal and taking on legal risk in the process. The team knew that outsourcing this process to an NDA service provider could reduce the time required by at least 50 percent, ultimately saving time to close the deal. The technology provider they enlisted helped them implement an end-to-end NDA process tailored to their needs, delivering a final set of documents in a well-organized data room. Read the full story.

Conclusion

With deal teams’ capacity stretched thin in a highly challenging and volatile environment, outsourcing in M&A in 2024 will undoubtedly continue its adoption as buyers and sellers strive to enhance efficiency, access specialized skills and focus on core competencies.

As demand for outsourced services continues to increase and technology advances, deal teams will find opportunities to focus on higher-level tasks. It’ll be up to the savvy dealmaker to strike the right balance between utilizing third-party providers and relying on in-house resources to unlock value, close deals and foster inorganic growth.

To read the complete set of case studies, download our white paper, The New Outsourcing In Action: Case Studies On Transforming Deal Processes, Minimizing Risk and Maximizing ROI.

For an in-depth analysis of the latest outsourcing trends in M&A, the role of artificial intelligence (AI) and automation, and how to choose the best managed service provider, check out The New Outsourcing: How Deal Teams are Accelerating M&A, Fundraising and Strategic Financing.