Miscommunication is a significant impediment to deal timelines in the real estate and M&A sectors, finds a recent study by Drooms and Statista.
The survey indicates that 76% of respondents identify stakeholder collaboration as the biggest challenge in transactions. It included real estate experts from traditional companies/developers (48%), investment firms (42%), corporate real estate (6%), and the public sector (4%). M&A managers came from private equity (30%), M&A boutiques (22%), corporate finance (20%), investment banks (18%), and management consultancies (10%).
The research highlights that 89% of respondents experience delays of more than 30 hours per deal due to miscommunication, with 18% reporting losses exceeding 150 hours. This substantial time loss underscores the critical impact of ineffective communication on transaction efficiency.
The survey also explored the various communication channels used during transactions, revealing that 100% of respondents use email, 88% use phone calls, 78% use video conferencing, 70% use centralised transaction platforms, and 19% use messaging apps like WhatsApp.
Alexandre Grellier, CEO and Co-Founder of Drooms, said: "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. 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. Miscommunication or delays in clarity can ripple through processes, creating inefficiencies that quickly add up. This finding underlines the importance of clear, timely, and effective communication in any business deal.”
In response to these challenges, 65% of respondents emphasised the need for a central collaboration platform to mitigate communication problems. The importance of transparency, task clarity, and message traceability was also highlighted.
On this backdrop, the company rolled out last year Drooms Chat, a due diligence platform that significantly increases deal security and speed.
