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The Ultimate Guide to managing M&A Pipeline

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“A methodical method for managing both the pipeline of opportunities and the deal-making process is required while dealing with a transaction flow of dozens to hundreds of prospects.”

Smaller, busier, and more focused on growth, corporate deal-making has taken on a new aspect. Not long ago, M&A experts planned no more than 3 or 4 significant deals a year, usually with an eye on the cost-cutting and industry consolidation benefits. Today, we encounter numerous executives who are attempting to close ten to twenty smaller agreements at the same time, often at the same time to combine a variety of complementary agreements into a single strategic platform to pursue growth—for example, by acquiring a slew of smaller businesses and merging them into a unit with growth potential greater than the sum of its parts.

According to a report by Statista, the total value of M&A deals in 2019 amounted to $1.58 trillion. Despite this, the M&A strategies of many companies lack effective due diligence and integration plans.

Naturally, when executives try to juggle multiple deals at the same time, productivity suffers as managers strive to get the fundamental process correct.   We’ve discovered that most businesses are unprepared for the effort of closing so many deals—and fumbling through the process might imperil the very growth they seek. The majority of them lack concentration, make ambiguous decisions, and discover potential acquisition targets in a reactionary manner. Without an efficient end-to-end process, it’s impossible to complete deals on time. That is where the need for a strong and efficient M&A Pipeline arises.

A methodical method for managing both the pipeline of opportunities and the deal-making process is required while dealing with a transaction flow of dozens to hundreds of prospects. You’ll need a consistent format for storing information about individual agreements, a clear sequence of stages that each deal goes through with an orderly flow of duties, and meetings to track progress and make decisions.

While no one-size-fits-all strategy exists for every merger and acquisition, all transactions follow a similar pattern. At MergerWare, the makers of M&A lifecycle management software, we will look at all areas of pipeline management for M&A negotiations in this article. Let’s begin from the beginning.

What do you mean by M&A Pipeline?

The flow of events that occur during a transaction, as well as how stakeholders operate them, is referred to as an M&A pipeline. Acquisition strategy and deal sourcing are the first steps in the pipeline, followed by acquisition planning, negotiation, and due diligence, and finally transaction and integration.

How to build an M&A Pipeline

  • Acquisition strategy and deal sourcing

Acquisition strategy and deal sourcing are the first steps in the pipeline. The acquirer must first identify the reasoning and reasons for acquiring targets and engaging in the M&A process before moving on with this step.

The acquirer will be less likely to identify appropriate and fruitful targets if this crucial phase is skipped. The Corporate Development team must create a database of targets once the acquisition mission has been established. The target list must then be modified according to the acquirer’s motives, resources, and objectives; variables such as deal size and strategic fit must be considered at this stage.

  • Initial Data Requests and Making Contact with the Seller

When a target is a good strategic fit, Corporate Development needs to interact with the seller and create a relationship while also acquiring preliminary data like KPIs.

Following the connection and collection, the Corporate Development team must decide whether or not to pursue the target further.

Due diligence uncovers information that helps the acquirer to see both the large picture and the details by collecting information that is not publicly available. The acquirer and its stakeholders and consultants, such as attorneys, financial advisers, and team leaders, typically carry out the procedure, which takes 30-90 days on average.

Followed by the due- diligence process is Integration. Integration is the combining of two companies – their employees, their operations, and their finances. It has the power to make or break deals, and the best acquirers have robust integration practices.

These practices include beginning integration planning early on in the M&A process, using diligence team members as integration team members later in the process to establish continuity, and developing integration plans before the deal closes.

Managing your M&A Pipeline

  • Storing Documents safely

Clearly, you’ll need a secure location to store all of your papers before you can manage your pipeline.

In such a scenario an M&A lifecycle management software, like MergerWare, is preferable because it eliminates the inconvenient and inconvenient exchange of hard copies and provides increased safety and security by providing the facility of automated reporting and storage, thereby improving collaboration and efficiency of the project. 

  • Maintaining transparency, while communicating strategically

Transparency in the M&A process promotes efficiency while also bringing concerns and potential stumbling blocks to the fore. Deals cannot fall into the trap of working in silos with an Agile-inspired pipeline management methodology, which reduces unnecessary work, holds team members accountable, and keeps stakeholders informed.

  • Using Excel for the Management of the Entire Process

Keeping track of all of your targets and deals in one place is critical for reducing the chaos and stress that often accompany deal-making. Excel is a tool that most professionals are familiar with and may be used to organize deals in your M&A pipeline.

Do you need an M&A Pipeline Template?

M&A pipeline templates are a valuable resource for all dealmakers, especially those who are juggling many deals at various phases in the M&A process.

In every stage of the M&A process, templates allow stakeholders and team members to manage everything from prospects and background information on each prospect through transactions and their leaders.

With MergerWare, you can enjoy access to extensive templates for all phases of the M&A process, as well as get the opportunity to create and upload customized playbooks and save them for future use, thereby standardizing your M&A processes.

How does an M&A Pipeline Management Software Help you here?

M&A pipeline management software is essentially an M&A project management software that is designed to be intuitive and collaborative and allows stakeholders and team members to communicate and stay accountable throughout the M&A process.

When many deals are in the timeline, pipeline management software can help you revive your M&A process by fostering efficiency.

Mergerware is a user-friendly and easy-to-use platform for easy adaption to an M&A integration team. Our integrated M&A Pipeline Management Software offers coverage and support for the entire M&A deal lifecycle, eliminating the need for businesses to use another platform. The platform is also straightforward to configure to the customer’s needs, and the customers can do the majority of the configuration without any expert knowledge.

Nurtured by M&A experts MergerWare’s robust M&A framework is built on a platform that enables businesses to quickly begin their M&A process without completing their M&A process/Playbook.

Our company’s all-in-one M&A software makes it simple to fine-tune layouts based on industry information and lessons learned, giving teams an end-to-end approach for deal management transactions and similar organizational growth actions.

If your company is looking for a successful M&A deal, right from identifying a potential target for the deal, to making a strategic plan for the execution of it while eliminating all the existing loopholes that fall in the way, our years of professional experience in deal-making can prove to be one of the most powerful weapons for you.

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