How Cloud Computing is Revolutionizing M&A

The mergers and acquisitions industry is being revolutionized by cloud computing, which is paving the way for more efficient and faster M&A transactions. Corporate leaders are taking advantage of:

• Faster integration with IT
• Improved document exchange
• Better data interchange

This innovative technology provides a real opportunity for companies to realize cost savings during the M&A and again after the transaction is complete.

Speed Up Integration Processes

Moving to cloud computing subsequently leads to abandoning traditional IT data centers. Because of this, M&A IT integrations have also gone through a transition. This is particularly true if both companies use the same cloud services. Fewer hassles will occur and the integration is handled very quickly.

In most cases, the IT integration becomes as simple as sharing passwords and usernames to the cloud account once the acquisition is finalized.

Mergers And Acquisitions

When different cloud services are used by both companies, the choice for both is to migrate from one cloud service to the other. Many systems are used across cloud services, so moving containers and VMs is typically handled over Internet links that are encrypted. By doing this, companies have the assurance that data is protected and confidential information is never compromised.

Cloud computing is also beneficial for companies with legacy programs and legacy data centers. The transition runs smoother this way since the platform is used by transferring existing systems to the cloud. This reduces redundancies as the systems are integrated.

To illustrate this, imagine a company that decides to merge a portion of its retail business with another corporation. By utilizing an automated cloud computing system to handle the transfer, they were able to host company data by creating hundreds of servers.

When the sale of assets were complete, the company simply handed the keys to the cloud servers during a brief meeting. In what would have taken several months, the other company was able to migrate the data within a few weeks.

Online Data Room Services

In the past, physical data rooms served as the place to transfer company information during the M&A. Documents and data related to the company and the merger were physically accessible. This was a secured area to ensure due diligence was completed with access limited to the primary participants.

Still widely used in the business world, online data room services can fill an important void. These are replacing physical data rooms through cloud computing services. Companies have the technological tools to create virtual data rooms, complete with granting access to the appropriate participants.

Generally, companies can set up the secure site and make it accessible with the proper credentials. Documents and data are made available for viewing from the server. Both parties have transparent access to information that is important for the M&A negotiations.

If negotiations end without completing the merger, access is immediately cut. Of course, this eliminates the process of the past where paper files and reports had to be retrieved. Additionally, online data room services allow for a faster set up than what occurs with physical rooms. In many cases, this reduces the time frame for the bidding process by as much as 30 days.

Electronically transferring documents and data eliminates the need to physically transport documents. Due diligence and other pertinent parts of the M&A are performed sooner, which reduces the cost of completing the M&A. Companies are increasingly moving to online data rooms not only because of cost savings, but also due to better data access options.

Realize True Cost Savings

Switching to cloud computing is a chance for companies involved in M&A transactions to realize cost savings. It is important to note that not only does this occur during the process, but for months following the M&A, companies can save money.

IT departments become more efficient and nimble, removing the fear often associated with using the cloud. Some companies expect that migrating to the cloud will only disrupt the transition. Just combining two disparate systems for different companies can cause uneasiness.

However, more companies willingly embrace the cloud when they are not already skeptical because of the disruption roadblock. Data resources from both companies can move to the cloud and capitalize on new synergies.

Integrating business systems on the cloud saves time and money. Among other things, redundant systems are reduced, while companies appreciate other benefits delivered by the cloud. Elastic bandwidth, rapid content delivery and elastic computing power represent some of the benefits that add up to tremendous cost savings.

Newly merged companies that move to the cloud become part of a growing trend that has revolutionized mergers and acquisitions. This business transaction will continue to take advantage of this revolutionary technology.

Between cost savings, the advantages of improved IT integrations, document exchange and data interchange, companies will come to appreciate their decision to switch to this efficient way of doing business in the 21st century.


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