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In the middle of an M&A transaction, every day, and every decision, counts. The stakes are high, timelines are tight, and one misstep can shift the balance of power, spook a buyer, or even derail the entire deal.
One critical piece that can significantly impact the trajectory of a deal is often overlooked: the quality and relevance of the data room. Transparency and real-time updates in your data room aren’t just nice to have, they’re fundamental to building trust and momentum during due diligence.
According to this great article by McKinsey, nearly 10% of large M&A deals are terminated before closing. While some are lost to political or regulatory headwinds, a significant portion(73% by deal value) are killed by misalignment on pricing and synergies. And guess when those tensions tend to surface? Right in the middle of due diligence.
This is when investors or acquirers are pouring over your data room, building their case, and validating your narrative. If they’re met with stale reports, missing updates, or lagging financials, it creates friction and fuels uncertainty.
And in this climate, uncertainty kills deals!
Here’s a scenario that happens more often than you’d think: a founder lands a major client or revises their revenue forecast mid-deal but forgets (or delays) updating the data room. The investors only see the old numbers, missing out on positive momentum that could’ve shifted valuation or accelerated closing.
Investors aren’t investing in a static snapshot of your business. They’re investing in something living, breathing, and changing every week.
McKinsey’s research highlights that successful acquirers are the ones who prioritize transparency throughout the process. A great example: a large company that published 15 updates during its acquisition of a peer, offering stakeholders real-time visibility into approvals and milestones. The result? Over 80%shareholder approval and a smooth close.
When buyers see you’re proactive and open with information, it sends a powerful message: we’ve got nothing to hide, and we’re on top of our game.
Of course, nobody wants to babysit a data room or manually upload every new doc. But that’s where automated data rooms come in. With the help of automations and AI, you eliminate manual work and reduce the risk of letting something slip through the cracks.
It’s about creating a single source-of-truth that evolves as your deal progresses. No scrambling. No surprises. Just confidence, for both sides of the table.
In today’s market, being transparent and timely isn’t a “nice to have” … it’s your competitive edge!
So, if you’re mid-deal, or just preparing for what’s next, ask yourself: Is my data room helping me close this deal—or quietly putting it at risk?
If you’re curious how to keep it updated automatically without lifting a finger, I'm always happy to share more.