The rise of information services and their importance to M&A

13. July 2017 | Drooms Global

The world of M&A is becoming more competitive. Much of this competitiveness is driven by the increased digitisation of the finance and business sector. Finding deals and M&A opportunities is done online and deal management is digitalised, with different tools from dealflow management to due diligence being used. The reason digitisation has been so successful and effective is down to the abundance of information. Anyone, from investors to advisors and businesses, is able to find and access information that helps make better deal decisions.

What are information services?

Information has always been around and there have been different ways of sharing it. But digitisation of information and data has given rise to information services. These are systems that serve data or information to users and systems; they collect data or information from contributors, managing and storing it to later serve to customers.

Since these services utilise technology, they are often able to hold more information, gather it from a variety of sources and compress it in better detail. The core purpose of these systems is to provide the right type of information to the right type of user.

Examples of specialised information services

Information services are popular because they provide users with easily accessible and condensed information. They utilise the most up-to-date technology, making it easy to manage data, no matter where you are in the world – these systems are online, and are responsive to devices and different ways of accessing the service.

There has been a progressive surge in the information service sectors. In terms of investments and M&A, different platforms have started to provide specialised services. For example, Drooms DEALFLOW is the go-to platform for private equity, venture capital and M&A. Similar platforms include sites such as PitchBook and Preqin.

Of course, there are also wider information providers. Bloomberg and Thomson Reuters are great examples of more traditional information services. Nonetheless, each has also begun focusing on specialised information.

Why do information services matter?

We ask this question particularly with respect to M&A. Also, are there benefits to implementing such services to your investment or business strategy?

Indeed, there are clear benefits to utilising information services. First, they make communication easier and enhance availability. Information and access to it are not locked behind ‘office hours’, and sharing them between a team and deal participants is easy. Furthermore, these services close the cultural gap – they are a big part of globalisation, lowering boundaries due to language and geographical distances as well as other cultural differences.

Finally, information services have had a huge impact on cost-effectiveness. Applications can provide adequate information much more quickly and in detail, ensuring decisions are made based on the most relevant and up-to-date data. These services provide an essential competitive advantage for anyone utilising them – the focus is not just on information and data, but specialised information and data. The emphasis is on information personalisation – providing users with an experience that helps them make the most of the information and data they want to view in the first place.

Information has always been important. But with information services, the ability to access it and make the most of it is more crucial than ever. We provide the services to do exactly that.