|[April 30, 2014]
ADDING MULTIMEDIA SRS|Acquiom Announces Revolutionary Online M&A Payments Service - Acquiom|Clearinghouse™
SAN FRANCISCO --(Business Wire)--
SRS|Acquiom today announced the launch of Acquiom|Clearinghouse™, the
industry's first M&A payments administration service that is completely
online. Acquiom|Clearinghouse reinvents how acquirers disburse merger
consideration to selling shareholders in private M&A transactions by
allowing paperless and easy submission of all materials and fast
payments. Buyers fund one account and are done. Sellers use simple
online forms and get paid quickly. M&A attorneys have satisfied clients
and no headaches. All at low to no fees.
"The M&A payments process hasn't seen innovation in decades," said Mark
Vogel, co-CEO of SRS|Acquiom. "It is burdened with tedious and annoying
tasks and paperwork that produce delays, errors, and bottlenecks.
Acquiom|Clearinghouse eliminates the hassles and makes the payments
process easy and quick for parties on both sides of the deal. M&A
payment administration has finally gone online."
"Slow payments is a huge hidden inefficiency in M&A," said Paul Koenig,
co-CEO of SRS|Acquiom. "The annual opportunity cost in the U.S. for
participants in private M&A transactions is $5 billion.
Acquiom|Clearinghouse solves this; we've paid 80% of merger
consideration on the day of closing, compared to an industry norm of 6-7
days later. Merger parties and their attorneys no longer have to suffer
the pain and hassle of mailing forms back and forth, filling out
paperwork by hand, hoping they can still find their stock certificate
from years ago and dealing with the numerous errors that inevitably
result from completing the process the old way. By moving M&A payments
administration online, we've made it fast, simple, and hassle-free."
"M&A deal technology has evolved, but some aspects of the deal process
haven't changed for decades. The payments process is one of those
areas," said John Hughes (News - Alert), Partner at Sidley Austin LLP, and Chair of the
ABA's Subcommittee on Private Equity M&A. "Services like
Acquiom|Clearinghouse show what technology can do to make the deal
process more efficient rom both an economic and practical standpoint."
Acquiom|Clearinghouse allows individuals to confirm their security
holdings without mailing paper stock certificates. "Many think online
LOT submissions are not possible due to the perceived requirement that
original stock certificates be returned," said Steven O. Weise, Partner
at Proskauer Rose LLP, and a leading authority on the Uniform Commercial
Code. "In fact, UCC � 8-207 provides all the protection the parties need
to avoid the hassle of finding and submitting paper stock certificates
and the costs of surety bonds when a stock certificate is lost."
Acquiom|Clearinghouse offers these benefits:
Fast. Payments take hours not weeks. Over 80% of merger
consideration has been paid on the closing date. For parties
submitting a timely and complete letter of transmittal, the result has
been 100% paid on the first possible date.
Better Economics. Shareholders' money doesn't sit idle. Less
time is spent on administrative tasks. The costly transaction
processing fees of current methods are eliminated. In most cases the
whole service is offered at low to no fees. And, the economics get
even better when combined with one of the Enhanced Escrow Solutions
distributed by Acquiom.
Easy. Buyers simply fund one account and then receive daily
reports. Shareholders fill in basic information online and e-sign
instructions - all on an intuitive user interface. Attorneys deal with
fewer administrative hassles. Acquiom|Clearinghouse also quickly
distributes third-party vendor payments out of merger consideration,
such as those for legal and investment banker fees, or for debt
obligations due at closing.
Greater Reliability and Accuracy. Because shareholders submit
and validate instructions directly into the payment system there are
no transcription errors. Often a source of complications, a redesigned
online Letter of Transmittal (LOT) is intuitive and much easier to
Secure. Information is protected using state-of-the-art
multi-factor authentication and sophisticated risk monitoring
No Paper. It's 100% online and environmentally friendly. There
is no mailing of paper documents back and forth, including stock
Expert Service. The experts at SRS|Acquiom understand "M&A
hours." Merger parties get full support from start to finish.
The economics get even better when merger parties choose one of the
Enhanced Escrow Solutions distributed by SRS|Acquiom. These offer
enhanced yields, reduced fees, and a greatly streamlined process when
purchased in combination with Acquiom's payments administration services
- often enough to cover the attorneys' fees and the transaction costs of
doing the deal. Going with traditional escrows is leaving money behind
for no reason.
"Once they see Acquiom|Clearinghouse, strategic buyers, along with
private equity, venture capital, and other selling shareholders, won't
want to do it any other way," added Vogel.
SRS|Acquiom is the global leader for managing administrative needs in
private M&A - innovating new ways to complete transactions that help
merger parties to close more efficiently and economically. The
affiliated SRS and Acquiom lines of business deliver industry-leading
shareholder representation, payments administration, and escrow
solutions with a senior-level team of M&A experts, attorneys, financial
professionals, and operations and systems experts. SRS|Acquiom has been
engaged on 600 M&A transactions comprising $95 billion in aggregate deal
value. For more information: srsacquiom.com.
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