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October 12, 2023 3 minute read

The Costly Choice of Free Tools in M&A Management

A Business Story

Company X, a Fortune 500 enterprise and a longtime customer of Devensoft, had a successful history of managing mergers and acquisitions (M&A) with the platform. However, during a cost-cutting initiative, they decided to transition away from Devensoft and rely on free tools, believing they could maintain their M&A excellence without the specialized software.

Phase 1: Initial Implementation

  • Company X, formerly a satisfied Devensoft customer, initiated the transition to free project management and communication tools for their M&A process.
  • They underestimated the challenges of adapting to a tool with fewer M&A-specific features and capabilities.

Phase 2: Missed Synergy Opportunities

  • As the M&A process advanced, Company X faced difficulties in identifying and realizing potential synergies between the merging companies.
  • The absence of Devensoft’s comprehensive analytics and integration capabilities hindered their ability to make data-driven decisions.

Phase 3: Data Security and Cyber Threats

  • The most significant setback came when Company X experienced a data breach, putting their sensitive financial, legal, and operational data at risk.
  • The free tools they had chosen lacked the robust security measures provided by Devensoft.

Phase 4: Delayed Closing and Increased Costs

  • Delays in the acquisition process mounted, resulting in additional legal, operational, and IT costs.
  • The realization of the consequences of moving away from Devensoft led to growing frustration and regret among Company X’s M&A team.

Phase 5: Return to Devensoft

  • Recognizing the misstep in their decision to abandon Devensoft, Company X’s board of directors decided to return to the platform.
  • This strategic shift was motivated by the need to salvage the deal, regain control of their M&A process, and protect their sensitive data.

While free tools may seem like a cost-effective solution upfront, they can lead to missed opportunities, cybersecurity risks, and increased expenses in the long run. In this business story, Company X’s experience demonstrates the significance of Devensoft as a valuable asset in their M&A endeavors. Even as a former customer, they realized the essential role Devensoft played in ensuring a smooth, secure, and efficient M&A process, ultimately prompting their return to the platform.

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