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How Technology is Changing the Deal-Making Process

By John Carvalho
Published: August 1, 2017 | Last updated: September 5, 2017
Key Takeaways

The internet and online networks are changing how middle market M&A is conducted. We have developed a technology that is contributing to that change.

As co-founder of Divestopedia, I am privileged to explore the possibilities that technology can bring to improving mid-market deal making. Over the last five years, I have learned that the internet and online social networks can significantly increase the chances of successfully completing a transaction. We have found that online networks can be used in the marketing stage to more efficiently connect sellers with the best prospective buyers.

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Many mid-market M&A firms have yet to embrace this advancement, but I am proud to say that my firm, Stone Oak, has been at the forefront of creating new online methods to improve the M&A sale process. Like the Starship Enterprise, we strive to boldly go where no M&A firm has gone before (cheesy I know, but I am a Trekkie at heart).

The next frontier that Stone Oak is currently exploring is transforming the Confidential Information Memorandum (CIM). It is traditional practice for M&A firms to use static documents (Word or PowerPoint) to prepare the CIM. Stone Oak, on the other hand, creates custom web-based CIMs that allow for interactive and media-rich content. The use of content such as HD video, infographics and interactive maps allows us to communicate a better story for our clients. This presentation elicits stronger user engagement and understanding of the business' strengths from prospective buyers.

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Here is a example of our innovative, web-based CIMs:

Secure Login

Confidentiality is maintained through a secured user login.

How Technology is Changing the Deal-Making Process

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Innovative Design

Modern and simple design conveys professionalism.

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Visual Processing

Studies show that visual information is processed quicker and retained in memory longer than other delivery methods. The use of high definition video leaves a lasting impression for prospective buyers.

Interactive Content

With a web-based format, interactive content such as maps can be inserted into the CIM.


Highlighting Attributes

Innovative ways of highlighting the company’s attributes. In this case, a gallery of images for the company's specialized equipment.

Ease of Navigation

A table of contents makes it easy for prospective buyers to navigate through information quickly.

Downloadable Content

Downloadable content allows prospective buyers to obtain the data needed to preform their analysis of the target.

Data Analytics

In addition to a more dynamic presentation, web-based CIMs allow for the collection of information through data analytics. This provides an advantage during the negotiation stage and early identification of potential areas of interest or concern for prospective buyers.


The Next Advancement in Deal Making is Here

Stone Oak is leading the advancement of deal making process with the development of the online CIM. These CIMs provide a significant advantage by differentiating our clients in an M&A market full of investment alternatives.

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Written by John Carvalho | President, Divestopedia Inc.

Profile Picture of John Carvalho

John is president and founder of Stone Oak Capital Inc., an M&A advisory firm, as well as a co-founder of Divestopedia. For more than 20 years, John has served his clients on numerous valuation, acquisition and divestiture assignments in a wide variety of industries. John holds the Corporate Finance designation, is a Chartered Business Valuator and a Chartered Accountant. He has made it his life's mission to help entrepreneurs build valuable businesses and Divestopedia serves as an avenue for this cause.

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