Common Ground

What is “transaction efficiency”? Transaction efficiency means minimizing the waste of time, effort and money in the completion of a business transaction.  Transaction efficiency is not the same as transaction “effectiveness.“   Effectiveness of a transaction is a function of whether the transaction delivers the desired result.  For a complex business acquisition/sale transaction, effectiveness requires a…

At Transaction Commons we are focused on transaction efficiency.  Transaction efficiency refers to the transaction process – minimizing the waste of time, effort and money in the interactions between parties.  Transaction efficiency is built around organization and effective communication, and offers the additional benefits of reduced confusion and aggravation.  A transaction process that is not…

There is a lot of excitement around the application of technology to transactions ranging from consumer loans, angel investing, commercial real estate, and business M&A transactions.  Many of these transaction platforms are designed to serve as an intermediary between the transaction parties.  The focus is on finding the deal by matching up potential transaction participants.…

A “cornerstone” is a stone uniting two masonry walls at an intersection.  If we’re talking about a business deal, there are two main parties and the “transaction” is where they intersect.   How effectively and efficiently they intersect is the question.  Depending on the transaction, there may or may not be a future relationship between the parties.  In any case, they must work…

For years there has been interest in streamlined transactions through electronic document signing, e-closings, and completely paperless transaction processes.   The act of physically signing a document has been cast as antiquated and wasteful.  Now the interest in this topic has accelerated with frequent media attention to broad applications of blockchain technology and its potential place…

With 2019 only a few months away, efficiency is especially important for year-end transactions designed to implement tax and business planning strategies. Efficiency is dependent on effective document and information management and organization, and while these transactions may be “internal” (because there is not a truly “adverse” party as there is in an acquisition, sale,…

The nondisclosure agreement has been signed, a high-level letter of intent is in place, and the transaction parties are ready to begin active and thorough due diligence.   Some initial planning and communication will help make the process efficient and effective. There are several obstacles to efficiency that should be anticipated.   The team members providing due…

The beginning of each potential transaction affords an opportunity to start off with efficiency and organization.   That opportunity arises with two documents:  the confidentiality agreement or nondisclosure agreement (NDA) and the letter of intent or term sheet. These two documents serve different purposes and have different legal effects, but how they are approached, negotiated, and…

A decision that must be made early in the transaction process is how to apply information security practices to transaction communications.  There are a range of options, and in perception (and often in reality) there is a continuum of trade-offs between convenience and security. It is critical that security protocols are openly addressed and consistently…

In previous articles we have discussed transaction process governance – the definition and application of rules that apply to the handling of information and documents during the due diligence and agreement negotiation phases of the transaction process. Transaction process governance is one component of the larger objective of Transaction Efficiency. This article will look more broadly…