SRS Acquiom has launched an online component to its administration service for M&A closing and post-closing payments, providing an alternative to paper-based payments.
"Over the last seven years, SRS Acquiom has seen almost $100 billion in merger consideration distributed to shareholders, witnessed the inefficiencies in the M&A payments process and directly heard the complaints of both buyers and sellers," says Mark Vogel, co-CEO of SRS Acquiom. "Clearinghouse was built to resolve the complaints of buyers and sellers with the incumbent services available in the market, which are typically provided by banks, trust and escrow companies."
Buyers in the merger fund one account, and sellers use simple online forms to get paid quickly.
Clearinghouse distributes third-party vendor payments, such as investment banker and legal fees or debt obligations, for clients.
Individuals can also confirm their security holdings without mailing paper stock certificates.
Traditionally the average shareholder was paid in six to seven days after closing. With Acquiom Clearinghouse, "We've been able to get 80% of the merger consideration paid on the day of closing," says Vogel. "With every day of delay costing shareholders $800 million in the aggregate industrywide, improving the process by six days is worth almost $5 billion to the recipients."
Shareholders decide how they will get paid, generally using either automated clearinghouse (ACH) for direct deposit of small payments or wire transfers for large payments, Vogel says. Clearinghouse also supports checks.