‘Miscommunication’ slows deal completions: Drooms, Statista
‘Miscommunication’ causes delay to deal timelines by 30 hours per deal according to 89% of the respondents to a new survey undertaken by Drooms and Statista.
The firms were looking at the role that communication plays in transaction processes, and the research also found that coordination with stakeholders can be the biggest challenge for 76% of respondents.
Conducted among 50 real estate experts and 50 M&A managers, the research also revealed that: the number of stakeholders involved in a transaction (67%); the complexity of the transaction itself (63%); lack of transparency (60%); and slow processes (57%); were the biggest challenges while 51% believed that the complexity of transactions has increased significantly in recent years.
The report explained that one reason for such difficulties is the very large number of communication channels used by stakeholders. While 100% of respondents said they used email during the transaction process, 88% used phone calls, 78% used video conferencing, 70% used centralised transaction platforms and 19% used messaging apps such as WhatsApp.
Drooms pointed out that use of WhatsApp is particularly concerning, as such messaging services are not automatically protected under the GDPR.
“All stakeholders in a transaction must be able to rely on a ‘single source of truth’, otherwise a profitable deal is doomed to failure from the outset,” Drooms’ founder and CEO Alexandre Grellier said.
“The problems with deal communication identified in the survey significantly reduce the likelihood of a successful transaction. Communication really is the lifeblood of smooth transactions.”
Grellier explained that miscommunication or delays in clarity can ripple through processes, creating inefficiencies that quickly add up which was why Drooms Chat was launched last year. The aim of this is to centralise all deal communication on one platform. Using AI, the new service is characterised by high security standards and mobile access options, and provices a due diligence platform that significantly increases deal security, speed and the probability of success. Grellier said.
