Intralinks' article, Social media is changing M&A, discusses
how social media platforms are surpassing their purpose as an easy
way to keep in touch to become useful tools in deal-making
strategies. Social media can provide an online network for deal
sourcing which plays matchmaker between buyers and sellers to
improve efficiency, communication, and secure information sharing.
In a 2013 survey by Intralinks, more than 55% of dealmakers
reported using social media to help plan and execute M&A
strategies. Companies using these services also reported closing a
deal sourced on an online network: 50% of the service users were on
the buy side and 40% were on the sell side.
The 2013 survey has since been followed up with a second survey
in 2015: Deal Networks and the Evolution of Getting M&A
Deals Done. This survey examines the adoption of these
technologies and notable changes over the past two years. The 2015
study has shown that conventional social media platforms are
actually being passed over in favour of more
"specialized" deal networks that can provide customized
functions to its users. The percentage of respondents who agreed
that online deal sourcing will eventually revolutionize M&A as
an industry had jumped from 23% in 2013 to 36% in 2015. Overall
adoption of online deal sourcing has remained consistent with 2013
levels at 30%, but is materially increasing on the buy side.
Although adoption remains steady, usage itself has grown since
The 2015 survey predicts that online deal sourcing adoption will
continue to grow into 2016. 65% of respondents who do not yet
participate in the practice cited that the key reason for not doing
so was waiting for the online deal sourcing space to mature
further. For those not yet ready to take the leap into online
deal-sourcing, social media platforms can still be useful. They can
be used as a sniff test when doing due diligence on a target
company to better understand the market sentiment toward a company.
They can also be effective post-deal: when companies have merged, a
social intranet can improve efficiency and transparency as well as
create cultural unity between entities. Social media and social
intranets can also be used as an easy way to share knowledge and
Despite its benefits, using social media in the M&A world
has its downsides as well. Companies should have social media
policies to help manage the risk that sensitive information may
become public. Social media is intended to be used spontaneously as
a quick and informal method of communication, but company
statements must be closely monitored during transactions or
reporting periods. Also, when using social media for due diligence,
monitored webpage activity can tip off employees about a potential
deal and accidentally reveal confidential information.
The author would like to thank Justine Smith, Summer
Student, for her assistance in preparing this legal
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Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
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