Mergers and acquisitions occur regularly. In fact, 30% of world’s largest organizations are considering some merger or acquisition. The life sciences industry in particular is characterized by frequent merger and acquisition activity. In addition to mergers between large companies, smaller, early stage pharma and biotech companies are often purchased as their R&D efforts yield new drugs ready to go to market. Records Management (RM) is a critical consideration during M&A activity, because as systems are combined or decommissioned, the records need to live on and be accessible and managed according to regulatory requirements. By designing a RM strategy and solution that is effective, financially viable, and adheres to industry regulations before any M&A activity emerges, companies can make themselves not just more attractive, but more valuable.

1. Key Records
Management
Considerations
During a Life
Sciences Merger
or Acquisition
Mergers and acquisitions occur regularly. In fact, 30%
of world’s largest organizations are considering some
merger or acquisition. The life sciences industry, in
particular is characterized by frequent merger and
acquisition activity. In addition to mergers between
large companies --think Pfizer-Allergan – smaller,
early stage pharma and biotech companies are often
purchased as their R&D efforts yield new drugs ready to
go to market,
But the reality is that mergers and acquisitions are
difficult to execute. There’s a lot that needs to happen
with a merger/acquisition, not the least of which is
combining and rationalizing IT systems. The need to
carefully reconcile systems is especially critical for life
sciences M&As because each company typically has
a wide range of systems, from quality systems to LIMs
systems to systems for managing clinical trial and drug
application documents.
Records Management (RM) is a critical consideration
during M&A activity, because as systems are combined
or decommissioned, the records need to live on and
be accessible and managed according to regulatory
requirements. By designing a RM strategy and solution
that is effective, financially viable, and adheres to
industry regulations before any M&A activity emerges,
companies can make themselves not just more
attractive, but more valuable.
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2. Managing Records Across Systems
Every company has multiple business systems, with content and documents
spread out across the organization. This makes information hard to manage
and hard to find, and creates risks associated with applying regulatory
processes consistently across disparate systems.
Consider, for example, the types of document-based systems that a typical
life sciences company uses. They probably have a quality system for
managing SOPs, and a systems for managing R&D activities such as a LIMS
system and a system for managing lab notebooks. They almost certainly
have an “eTMF” system for managing clinical trial documents and processes,
and they may have a system for managing eCTD documents related to drug
applications. And that is just the start of the list.
All these different systems spread out across the company cause challenges
for records management. For example, a company must be able to find and
deliver and preserve any document on a particular topic within a reasonable
amount time in case there’s a subpoena requesting information about it.
Companies are also required to manage documents with a retention policy
that is logical and consistent across all systems (for example all documents
of a certain type or family). With documents spread across many different
systems, consistent application of retention policies can be a significant
challenge.
A great RM system doesn’t replace all these different systems. Instead, it sits
off to the side and keeps tracks of all the documents in all those systems,
ingesting some and creating an index to others but leaving them in the
systems from which they originated. This provides p the ability to search
across systems, place documents on hold and manage retention policies for
all records no matter what system they are in.
With a unified records strategy and solution, you can easily meet regulatory
requirements without upending all the different systems you have. It also
makes dealing with records in an M&A situation far simpler, since systems
can be decommissioned or merged as necessary while retaining the records
outside the source systems.
Key Records Management Considerations During a Life Sciences Merger or Acquisition 2

3. Here’s a scenario that highlights the benefit of having a records management solution
in place when moving to a new system.
You work for a large pharmaceutical company. One of the systems you manage is a
Documentum system which stores your quality records, such as your SOPs (standard
operating procedures), some old, some new. You want to move to a new system for
managing these records, one that is new, better, faster and cheaper. Do you move all
your records, both old and new? How do you move the old records and still ensure
the regulatory requirements, such as audit records, are maintained? Do you keep the
current system for the old records and use the new system for new records?
If you decide to keep the old system for the old records, then you have costs
associated with two systems, two different places to find information, and so on. This
is clearly not ideal.
A unified records management system provides a better solution. In this case, it can
take the old records out of one system (ingest them) and store them in a standard
format (such as PDF) with all the information they need, like the audit trail and
versions. New SOPs are created and live in the new systems, but the SOPs created by
the system being decommissioned remain available, searchable and are managed in
accordance with consistent retention policies.
Now put yourself in the position of managing a merger or acquisition; a company with
a records management solution in place makes a much more attractive candidate
than one that has not made that investment.
Dealing with
Records When
Moving to New
Systems
Key Records Management Considerations During a Life Sciences Merger or Acquisition 3

4. Key Records Management Considerations During a Life Sciences Merger or Acquisition 4
What this Means for a
Merger or Acquisition
In an ideal merger or acquisition scenario, both companies use the same
business systems, the same records management systems and have the
same records management processes.
But of course that scenario doesn’t exist in the real world. In a merger or
acquisition, there will always be duplicate systems doing the same function,
but from different vendors and built on different platforms.
For example, one company uses Documentum for its SOPs and the other
uses Veeva. Once merged, however, they only want to use Veeva. The
question becomes how do you merge the Documentum records into Veeva?
You basically have three options:
1. Migrate everything from one system to the other. This is an expensive and
time consuming effort.
2. Leave the old inactive records in Documentum and go back to it when
you need them, even though there are costs associated with keeping a
system operational (think upgrades!) just to access inactive records.
3. Move the old Documentum records to a separate records management
solution, migrate just the active records, and use the new system for all
new records.
The third option is clearly optimal. But it begs the question: How is this third party generic system cheaper or better? You still have to move
all your records. Aren’t you simply moving from one proprietary system to another?
The answer is to look for key capabilities in the unified records management system. Here is a short list of requirements for a unified records
management solution:
• Records are stored in a non-proprietary format (a PDF which stores all the metadata like audit trail and version information with the PDF)
• Can search records whether ingested or indexed
• Is able to take actions on records - such as legal hold
• Applies retention schedules and triggers actions based on those schedules
• Provides “tiered stirage” – the ability to move records with different access requirements to different storage technologies
• Makes it easy to migrate them again if you needed to move them
• Is CMIS (content management interoperability standard) compatible (an open standard that enables different document management
systems to talk to each other)

5. Key Records Management Considerations During a Life Sciences Merger or Acquisition 5
Proper Records
Management is Critical
Combining companies involves unifying systems and processes of
many types. Records management is only one area that needs close
attention — but is an area that can affect lots of other areas relating
to IT strategy, flexibility and costs, as well as regulatory compliance
risk.
For the life sciences industry, the amount of regulation and the vast
quantity of records created means that integrating systems involves
challenges relating to the migration, retention and management of
records. That means that whether you expect to be an acquirer or an
acquisition target, creating a unified records management strategy
and system can make the prospect of a merger far less daunting.
Additional
Challenges
Life Science
Companies
Face with
M&A
Life sciences is the most regulated industry other than nuclear in the United States, and as
such mergers and acquisitions face challenges similar business transactions in other indus-
tries do not.
• Regulatory Requirements: We’ve already mentioned the regulatory challenges compa-
nies in the life sciences face. Everything from SOPs to clinical trial documents and process-
es must be carefully managed and stored to meet strict guidelines and laws.
• Multiple Disparate Systems: Life sciences companies with revenues of over $100 million
typically deal with at least seven or eight types of technology to manage records and docu-
ments. Some of these are custom built on platforms such as Documentum. Others are best
of breed solutions that solve specific problems. And most of these companies do not have
a global centralized records management architecture.
• M&A Patterns in Life Sciences: In the overwhelming number of cases of M&A in life scienc-
es, big buys small. What the mid-size company needs to be aware of, however, is how their
approach to records management and regulatory compliance can make them more – or
less – attractive and acquirable.

6. www.everteam.com
info@everteam.com
About
Everteam
Everteam brings over 25 years’ experience and innovation to the field of Enterprise Content
Management. In an ever-increasing legal and compliance environment, Everteam’s range
of products support the improvement of content –driven processes, and enable enterprise
customers to easily monitor and align their content strategies for overall organizational
efficiency and effectiveness.
+33 (0)1 72 71 33 3
336, rue Saint-Honoré,
75001 Paris – France
+1 (650) 596-1800 (voice) / +1 (650) 249-0439 (fax)
28 State Street Boston,
MA 02109, United States