Drooms and Software Association Propose 5 Steps to a Smooth Q&A Process for Transactions

05. November 2013

Software Initiative Deutschland e.V. (SID), working in cooperation with SaaS specialist Drooms, has published a white paper recommending that an automated Q&A workflow should be used during M&A and real estate transactions. An integrated Q&A tool from Drooms will provide the basis for the new process.

SaaS specialist Drooms and Software Initiative Deutschland e.V. (SID) today published a new white paper on how to make the Q&A process used in M&A and real estate transactions smoother and more efficient. The paper presents a five-step plan that is based on an integrated and automated Q&A tool to ensure efficiency and confidentiality.

According to the white paper, a smoothly functioning, confidential, and efficient Q&A process can be divided into the following five steps:

  • Configuration
  • Execution
  • Q&A monitoring
  • Updating the data room
  • SPA disclosures

Therefore, a well-structured Q&A management platform (Step 1) can contribute significantly to processing speed and, as a consequence, reduce the time required to complete a transaction. This is made possible by pre-defined authorisations, which prevent lengthy approval processes and the need to search for particular individuals during the due diligence process.

The most intensive phase of the Q&A process is the workflow phase (Step 2), which generally takes anywhere from two to eight weeks. With the aid of virtual Q&A tools and clearly defined procedures, it’s possible to handle several thousand queries methodically and effectively. It’s particularly important that project management is able to keep track (Step 3) of the status of specific queries and see which team may be behind in providing answers.

Answers provided in a Q&A process (Step 4) result in files being updated in or additional documents being uploaded to the data room and become part of the total document release associated with a transaction. By the end of the due diligence process, all queries and answers must be incorporated into the reporting (Step 5) provided for each of the bidding stakeholders who are actually acquiring an asset. The entirety of Q&A process between the seller and eventual buyer is documented on CDs/DVDs and becomes part of the annex to the sales and purchase agreement (SPA).

Jan Hoffmeister, Drooms' managing director, says, “Traditionally, the Q&A process is carried out either on paper or through emails or Excel sheets, which has led to a lack of efficiency and inadequate compliance. Using an individually configured Q&A tool, tailored to fit the seller’s specific processes, will allow them to disseminate questions to the proper parties, together with the appropriate level of authorisation to ensure organisations maintain focus on content instead of procedures.”

The white paper on transactions, including the five-step plan, is available free of charge.

© 2013 Drooms

About the Software Initiative Deutschland e.V. (SID)
The Software Initiative Deutschland e.V. (SID) was established as an association of IT and software professionals for the purpose of highlighting the growing importance of software in ever more aspects of professional and business life. Investment in computer software by consumers and both public and private sectors is estimated at roughly 2 trillion euros. SID sees itself as both a forum for discussions among specialists and a source of information for consumers. The Software-Initiative sets up working groups, forums and other platforms to address the German market, such as those for software development, SaaS, virtual data rooms and the further development of the internet. SID is a networked association that actively seeks working relationships with other associations, organizations and companies.