2024-08-15 13:14:32
Comprehensive research from SS&C Intralinks, Bayesian Business School and Mergermarket examines changes in due diligence over the past decade
SS&C Technology Holdings Inc. (Nasdaq: SSNC) today announced the release of the SS&C Intralinks Report How deal terms impact due diligence known. this M&A Research Center Researchers from Bayesian Business School (formerly Cass Business School) used data from SS&C Intralinks’ proprietary database to analyze more than 900 global M&A deals announced between 2013 and 2023. The study found that the average due diligence stage for private targets was nearly twice as long as for public acquisitions. Additionally, private transactions require almost twice as much documentation and collaboration.
Ken Bisconti, co-director of SS&C Intralinks, said: “Dealmakers continue to pursue numerous opportunities in the private markets, but the environment for raising and deploying capital is challenging. Due diligence times have lengthened and the process has become more complex, often requiring more documentation. , this study confirms the increasing importance of virtual data rooms and other digital spaces for the efficient and effective implementation of due diligence processes.
One of the most important findings is information belong:
- The average duration of due diligence (from VDR opening to deal announcement) for private targets is 234 days, compared with 125 days for public companies. Over the past decade, pre-announcement due diligence time has increased from 124 days in 2014 to 203 days.
- On average, private companies uploaded 7,583 files to the VDR, while public companies uploaded 4,896 files. For the most common medium-sized stores on the market today, the number of uploaded files increases to over 8,000.
- Private transactions have more people involved in due diligence, with an average of 271 VDR users, compared to only 195 for public transactions.
die study It has also been found that due diligence of medium duration generally produces the best results:
- Deals with a median due diligence time of about 139 days are more likely to close. Such transactions are expected to take 104 days from start to completion.
- Buyers are less willing to pay a premium for mid-term due diligence, as prices hover around 22% during such reviews. The average price increases after the short-term and long-term due diligence phases are 30% and 33% respectively.
- Deals with medium-length due diligence periods can generate the best overall returns of up to 4%, while short or long due diligence periods tend to produce negative results.
find out here Learn more about how contractual conditions impact due diligence here More updates on due diligence.
SS&C Intralinks is a pioneer in virtual data rooms, providing software-enabled services throughout the deal lifecycle, including deal marketing, deal preparation, due diligence, insights and post-merger integration. Intralinks’ technology enables and protects information flows by facilitating mergers and acquisitions, raise funds and Investor Report. SS&C Intralinks has processed more than $35 trillion in financial transactions on its platform.
Information about SS&C technology
SS&C is a global provider of services and software to the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut, with offices throughout the world. Approximately 20,000 financial services and healthcare companies, ranging from the world’s largest enterprises to small and mid-sized companies, rely on SS&C’s expertise, scale and technology.
For more information
SS&C (NASDAQ: SSNC ) is available at www.ssctech.com.
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M&A Research Center News
this M&A Research Center Bayesian Business School was established in 2008 and is the only research center among large business schools focusing on M&A research and practice. Bayesian Business School is affiliated with St George’s City College, University of London and is located in London’s historic financial district. touch: BayesMARC@city.ac.uk
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