CRM, or customer relationship management, is an indispensable tool for modern businesses. It manages the avalanche of customer data, thereby enabling companies to deliver personalized services, automate and streamline processes, and improve customer service.

No doubt that CRM systems have been beneficial for many industries. But traditional CRMs aren’t proving to be as effective for the M&A process.

What M&A Means

M&A, or mergers and acquisitions, is the process of combining two companies into one. M&A can be facilitated in different ways, including consolidations, mergers, acquisitions, asset purchases, management acquisitions, and tender offers. The purpose of an M&A transaction is accelerating business growth, which both companies feel is not possible if each remains a single entity.

By definition, a merger is when two existing companies combine. An acquisition, also called a takeover, is when one company takes control of another, either by buying equity shares or procuring assets.  If a company is acquired, it no longer functions as a single entity. The acquiring company has the rights to use the acquired company’s name and trademarks.

Why Traditional CRM Should Not Be Used In M&A Process

  • Traditional CRM lacks the functionality for collaboration

The collaboration needed for a successful M&A transaction is more delicate than what a traditional CRM offers. A specialized M&A CRM has an interface that allows teams across two companies to communicate, gather data, and track the transaction’s progress in a centralized platform.

  • Traditional CRM does not have M&A-specific permission settings

An M&A deal typically involves multiple stakeholders. They each have different responsibilities, and they each require unique permission settings. A specially-designed M&A CRM software system can facilitate these permission settings so that each stakeholder can access only what they need to see.

  • Traditional CRM does not have dependable enough security to protect sensitive documents

In M&A deals, there are lots of sensitive documents and company information being exchanged. Conventional CRM software is not equipped to store such details in a secure manner, however specialized CRM designed for M&A transactions allows for modification of document permissions and view-only access.

  • Traditional CRM is not pre-configured for M&A

Tracking sales and customer-related information is what CRM software is all about. That is hardly enough for M&A, which requires integration processes important for making successful transactions. If you use a conventional CRM to track specific M&A-related information, you will need the help of a third party to make the necessary configurations.

  • Traditional CRM lacks M&A analytics

Here are the M&A deal analytics that you cannot find in common CRM:

  • Which tasks should be completed first.
  • Which documents are viewed by members the most.
  • The most active prospective buyers.


Conventional CRMs are more effective for customer retention and services, but when it comes to M&A transactions management, you need specific M&A CRM software to be able to handle everything from document security to analytics. It is vital to have the appropriate tools at your disposal if you expect to make successful M&A deals.