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10 Jul 2020

4 Reasons You Need a Top Research Platform for Financial Professionals When Engaging in M&A Activity

COVID-19 has, without question, changed business as usual—and that includes in the arena of mergers and acquisitions. But the projected economic downturn doesn’t necessarily mean M&A activity—or the research needed to support M&A deals—will come to a standstill. PwC has been conducting periodic surveys of finance leaders across the country since the pandemic began. In its COVID-19 CFO Pulse Survey from late April, PwC reported two interesting findings:

  • 40% of CFOs said their M&A strategy was not being affected, an increase of 7% compared to two weeks earlier, suggesting that the measures put in place to slow the spread of COVID-19 have boosted confidence
  • Tech, media, and telecom companies are even more upbeat, with more than half (55%) say their strategy remains intact.

Why tech? The need to use social distancing to slow the virus has also resulted in higher demand for tech products and services. The survey found that 40% of CFOs are interested in moving forward with automation and other tech solutions to support new ways of working. When combined with the large cash reserves enjoyed by tech companies, PWC said, “This leaves tech better-positioned to weather the pandemic’s economic fallout and to execute on inorganic growth strategies. M&A is likely to recover faster than the US economy, with tech among the cash and capital-rich sectors leading the charge.”

Research enables data-driven decisions for M&A deals

Whether you’re a financial advisor to a client considering a merger or acquisition or looking into potential M&A deals for your own organization, a comprehensive solution like Nexis® for Finance helps you make confident decisions based on solid business intelligence. Here are four clear benefits:

  1. Uncover and track M&A opportunities. The combination of Nexis, Nexis® Dossier and LexisNexis® Public Records puts vital information at your fingertips. Review trade journals, industry, market and company news, market analyses to spot signals of potential opportunities. Identify stressed companies based on financial stability scores and other financial markers. Keep tabs on current mergers and acquisitions with comprehensive information from MergerStat.
  1. Get to know the companies involved, fast. Access Company Snapshots for a quick overview including a company description, key financials, top executives, and the latest news on any of the 240 million companies from around the world. Want to take a deeper dive? Generate custom, in-depth Company Profiles including company hierarchies to better understand the relationship between a parent company and its subsidiaries, divisions, plants and even shell companies. Review SWOT analyses of the companies involved to clearly understand each organization’s strengths, weaknesses, opportunities and threats.
  1. Find public records related to a company with access to 82 billion public records, all in one place. SmartLinx® reporting technology simplifies the process by organizing results from a company search into a concise report with links to the source documents. SmartLinx also identifies potential red flags, providing color-coded markers to indicate the issue.
  1. Enhance your due diligence process. Nexis for Finance features a variety of critical resources to help you manage M&A risk. Determine if the companies involved are subject to international or national sanctions or appear on enforcement agency watchlists, or blacklists. Review current and archival adverse media to understand if association with a company poses a reputational or regulatory risk due to unethical conduct or compliance failures in the past. Dig into legal sources to identify potential issues, such as a litigious past that could indicate the potential for costly lawsuits in the future.

Recently, Harvard Business Review pointed out that companies that moved forward with major acquisitions during the global financial crisis in 2008 outperformed their less adventurous rivals. The opportunities are out there, and with a top research platform for financial professionals at your fingertips, you will be better prepared to find and act on M&A deals with confidence.

See for yourself by arranging a personalized demo of Nexis for Finance today.