The document discusses key trends impacting corporate development teams, including increased expectations from shareholders and boards of directors for more visibility into deal pipelines. It also notes that credit markets have rebounded and strategic buyers are more active. Due diligence processes have become more complex, prolonging deal cycles. IntraLinks offers a secure cloud-based solution to help corporate development teams address challenges around organizing transaction materials, collaborating across teams, and monitoring deal progress. The solution provides benefits like centralized document storage, configurable workflows, and dashboards to improve oversight of deals.
From insight to action - data analysis that makes a difference! - Heena Jethwa
IntraLinks Solutions Streamline Corporate Development
1. IntraLinks
Solutions for Corporate Development
INTRALINKS CONFIDENTIAL 1
2. Key Trends Impacting Corporate Development Teams
Meeting “Street” Equity & Credit Return of Strategic Inorganic Growth
& Shareholder Markets Have Buyers a Healthy
Expectations Rebounded Alternative
• Executive team • Credit markets have • Strategic buyers • Cost-cutting has
and Board seek emerged from with strong balance been done – the
more visibility into hibernation – debt sheets are “low hanging fruit is
pipeline financing available leveraging cash gone”
• Executing “smart” • M&A currency no reserves to fuel • Organizations are
transactions that longer limited to growth via M&A looking at strategic
are accretive in the cash – stock once • Multiples have initiatives to drive
near-term is key again an option “normalized” – scale, enhance
bid/ask spread has productivity and
narrowed improve margins
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3. Due Diligence Stage is Increasingly Complex
Companies are
seeking a more
structured, formalized
approach to strategic
transactions
Greater emphasis
on conducting
due diligence
has prolonged
deal cycles
Source: Forrester Consulting, “Trends, Challenges, and Technology Use in a Changing M&A Environment”, 2010.
INTRALINKS CONFIDENTIAL 3
4. Corporate Development Obstacles
Organizing Transaction • Dependence on unsecure e-mail folders and shared drives
Materials for storage of transactional materials
Dozens of acquisition • Unleveraged best practices: templates, financial models,
opportunities reviewed annually and industry research
Deal Team Collaboration • Communicating next-steps and action items to the extended
working group
Cross-functional contributors plus • Sharing information beyond the firewall
large teams of advisors
Monitoring Deal Progress • Tracking numerous ongoing transactions on varying
timelines amongst various cross-functional teams
Multiple opportunities in pipeline –
• Reliance on Excel checklists & frequent working group
each could take several months
calls to monitor work streams
to complete
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5. IntraLinks Offers a Better Way
IntraLinks’ Improved Corporate Development Process
Centralized Repository Enhanced Deal Improved Deal Oversight
Secure cloud-based storage Team Collaboration Dashboards enable better control
minimizes risk of information leaks Configurable workflows and of process steps and deadlines,
– which can kill a deal or impact alerts help guide the deal team critical to submitting timely bids in
valuation through the due diligence phase auction processes
Easily retrieve due diligence files Version control during the Provide prompt and accurate
– no longer rely on hard drives and negotiation phase accelerates status updates to the executive
e-mail systems for storage drafting the Purchase & Sale team and BOD with centralized
Agreement reports
Searchable archive of
opportunities that have been User-specific access and Audit trails allow Corp. Dev.
previously reviewed. permissions preserves group to monitor due diligence
- Have we looked at this confidentiality activity.
company in the past?
Customized Exchanges mirror
- Why did we pass? due diligence request list
- What’s changed? templates
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6. IntraLinks Supports the Entire Deal Lifecycle
IntraLinks’ Improved Corporate Development Buyside Process
IntraLinks has
a solution toolkit
that streamlines
the evaluation
and execution of
potential acquisitions.
We help from the
moment you receive
the teaser, through
post-merger
integration.
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7. How Is IntraLinks Addressing These Challenges?
More than just a “VDR”
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8. IntraLinks’ Corp Dev Dashboards
Homegrown systems offer limited visibility
into the progress of deals in the pipeline
• Dependence on e-mail and spreadsheets
– neither secure nor scalable, and difficult
to manage
Capture key summary data (i.e. deal
stage, size, status, priority, probability,
etc); activity log; contact information;
target financial information
• Direct Exchange links to most frequently
used documents
Holistic view of buyside and sellside
opportunities for the Corp Dev team
• Easily filter current or historical
transactions that have been reviewed
Quickly generate C-level/Board status
update reports
Permission-based access restricts
visibility for business unit users
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9. IntraLinks for Corporate Development:
Tangible Economic Benefits for Corporate Development Groups
Improve Collaboration Efficiency • 50% time savings and 15% total cost reduction on
and Process Management each deal through more efficient pipeline management
(The Stanley Works)
• 25-35% reduction in external advisor expense with
improved utilization
Reduce Physical • 25-50% total cost reduction across document storage,
Document Costs scanning-distribution-printing
• 10-15% reduction in departmental IT support need
Mitigate Corporate Risk • Improved content security / control
• Reduced confidentiality risk with improved document vs. e-
mail / hard copy
• Savings estimates based on market information, and surveys/interviews with IntraLinks clients
• * ROI based on productivity gains in the deal prep and marketing phases, & improved efficiency during due-diligence for sellside and buyside deals.
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10. Corporate Development Case Study
The Implications The Result
• Use of e-mail and internal shared drives • MetLife closes deals faster by
for collaboration was common - but shaving weeks off the process cycle
cumbersome and inefficient through more efficient information
distribution
MetLife needed a better • Team members wasted valuable time
solution for deal teams, searching for documents and worrying • Saves 1000’s of man-hours / costs
who are spread across about version control by eliminating the need for travel to
onsite data rooms
corporate functions and The Solution
geographic regions, to The Benefit
• MetLife chose IntraLinks for the exchange
easily collaborate on
of its critical information • MetLife now uses the same
transactions, and to exchange for both ongoing deal
• Implements a way for deal participants to
exchange critical activities and integration efforts,
instantaneously communicate to everyone
information inside and working on the deal, regardless of location regardless of deal size
outside the company.
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11. Recognition by our clients and industry experts…
“ IntraLinks allows us to collaborate well with a broad
team of internal and external experts. We can
instantaneously communicate to everyone working on a
IntraLinks is a one- particular deal and receive their insight equally as fast.
It creates a significant advantage for us.”
stop shop for
— Scott Gould, Vice President, Corporate Development, MetLife
Corporate
Development. It
provides a quick and “Corporate executives are realizing the need for
easy way for us to dedicated tools along the M&A life cycle to mitigate
risks and potential failure of their investments and
keep track of all our divestments
critical information, — Forrester: Market Overview, The M&A Management
Tools Market, Daniel Krauss
stay aligned and
streamline workflow
— Tamara Bross, Project Manager, “Point solutions and generic
Corporate Development, The Stanley tools are not an effective
Works
means of managing the entire
M&A life cycle.
— Forrester: Trends, Challenges, and Technology Use in a
Changing M&A Environment, Daniel Krauss
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12. Secure access from mobile devices
including iPad and iPhone
IntraLinks can be accessed from popular mobile devices, including Blackberry®,
smartphone, iPad and iPhone to enable deal participants to always stay in touch
and ensure rapid deal progress
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13. 15 years of experience in serving the M&A community…
worth of M&A transactions have
$6.1 trillion+ been executed on IntraLinks
pages of Strategic Transactions content
100 million+ currently reside on IntraLinks
advisors have logged onto IntraLinks
4,000+ in the past six months
advisors have logged onto IntraLinks
70,000+ in the past six months
INTRALINKS CONFIDENTIAL 13
Editor's Notes
This slide outlines four categories of macro-level trends that are affecting the day-to-day lives of Corp Dev professionals. The key to presenting this slide effectively is to have a relevant piece of current industry/company-specific knowledge to weave into the discussion. Examples include: a recent deal that a competitor has closed, rumors of a transaction in the sector, the escalation of a company’s stock price, overall market trends gleaned from an analyst report, etc.Meeting Shareholder Expectations – The end-goal of all Corp Dev teams is to drive growth and increase earnings. The Corp. Dev. group reports directly to the C-Level executive team and interacts frequently with the Board. As such, they’re under substantial pressure to execute “good” deals. “Good” deals are those that are immediately (or quickly) accretive/additive to the company’s earnings. Organizations do not want to be writing-off failed transactions in this climate. Also, C-Level execs and the BOD are seeking increased visibility and general awareness of deals in the pipeline. They’re no longer hands-off when it comes to strategic initiatives.Equity/Credit Market Rebound: While neither market has fully recovered, stock prices are generally up (despite the recent market correction…compared to ‘08/’09 levels) and lenders are once again…lending. Both are important to Corp. Dev. groups. Improved stock performance means they can potentially use stock as currency in a transaction and won’t have to finance the deal solely through cash reserves; and, they can once again borrow money to get deals done - at reasonable rates. Having financing options is obviously beneficial.Return of Strategic Buyers: Companies have been stockpiling cash on their balance sheets over the past 24 months and they now have to put the capital to work. Also, deal multiples are high enough to entice potential sellers to contemplate a sale but low enough for potential buyers to be active. Sellers looking for exorbitant valuation multiples is no longer prevalent. Lastly, there are quality opportunities on the market. Many companies looking for an exit over the past 24 months have been desperate for an exit, or at least viewed as such (if you’re a healthy company, why sell when market conditions are so poor?) but that’s no longer the case.Inorganic Growth: Companies held a “bunker mentality” in '08/09, meaning they were more concerned with rectifying internal issues and cutting costs within the organization vs. pursuing external growth opportunities. Now that most of the excess “fat” has been trimmed from the corporate structure organizations are seeking other channels to fuel growth…i.e. M&A, JV’s, partnerships, etc. While these initiatives are once again on the radar of Corp. Dev. groups, deal cycles are more time-consuming than ever. The fear of doing a “bad” deal is real, and Corp Dev/C-Level teams are cautious in their approach. The amount of due diligence required has spiked and the process now involves a multitude of cross-functional teams – which prolongs the timeline for evaluating/executing deals and results in increased costs.
Slide to talk to. I will name 3 of the 4 vignettes that we will cover in the product demo session and how these relate to the challenges on the previous slide:Key capabilities of the IntraLinks platform include:User Experience & PersonalizationThe IntraLinks platform can be managed from a simple web browser, and has a robust, user-friendly interface that increases productivity and drives adoption.Add users, find information across projects and exchange content rapidly via an intuitive interfaceView to-dos and approvals across deals, key transactions, and more via dashboard widgetsStart up faster, with industry specific templates to structure content, define workflows, and set user permissionsAccess and control content anywhere, 24/7 via laptop, PC, or iPad and IPhoneView IntraLinks user interface, documentation, and help files in your local language, including English, German, French, Spanish, Brazilian Portuguese, Japanese and Simplified ChineseContent ManagementContent management capabilities help organize files and documents, giving you the control to manage inter-enterprise collaboration, while meeting regulatory and data governance requirements.Organize and manage information throughout the life of your project efficiently with IntraLinks DesignerView who has access to documents, and folders and quickly change permissions and document protectionQuickly find relevant content and to identify and engage the right people in your process with dynamic indexing and powerful search capabilitiesSupport compliance with an archive of all documents, access history, historical permissions and alerts sent — on exchanges or in read-only DVD formatBusiness Process EnablementTemplated workflows allow you to control document distribution, request, submission, approval and review. Rules-based processes offer enhanced flexibility in configuring workflows.Define workflow execution, document types, permissions, and actionsCreate process rules based on a variety of configurable criteria, including custom fields assigned to documents and groupsTrigger alerts and notifications based on content action to ensure smooth collaborationTeam CollaborationIntraLinks enables collaboration between and across organizations supporting specific, mission-critical business processes. Mutual access to critical information is an imperative for any enterprise extending its business processes to customers, suppliers and partners.Cross-project information sharing and integration capabilities facilitate business beyond the IntraLinks platformAd hoc file sharing Enhanced Q&A functionality enables communications with internal and external business partners, driving collaborative processDashboards and ReportingRobust analytic capabilities enable sophisticated reporting and deliver business to support audit and compliance processes, driving better, faster decisions. Dashboards enable you to stage and host critical data, and present it externally. Flexible reports allow you to compare activity across groups, users, documents and user-defined collections of informationAnalytical information can be displayed in the form of charts, graphs and heat mapsProvide external users with a simple and interactive way to view structured data via IntraLinks Dashboards