DQM Group, the data value management expert, has launched its Data Information Pack - a new product, which helps data owners understand the value, threats and opportunities with their data ahead of a merger or acquisition. The service analyses the commercial databases, and in order to provide a credible, benchmarked valuation of this asset. Operationally, the DQM Group analysis also helps implement effective strategies to improve data quality standards, increase volumes of permission data, improve data security and drive value and enhance future profitability.

The marketing services industry is not only historically rich in merger and acquisition activity, but it has also more recently seen an increase in consolidation. In such an environment data owners need to be aware of the quality of their data. Is it fairly collected? Is it properly held? Is it fully compliant with the Data Protection Act? If the answer to any of these questions is ‘no’ then a potential buyer will have to think twice about acquiring a company whose principal asset is in any way substandard. At the very least, non-compliant databases will be valued significantly lower than their compliant equivalent.

If commercial and customer data has not been ‘fairly collected’, then it may be illegal to continue using it. Enquirers’ email records may not be used unless they have overtly ‘opted-in’ to being contacted. Duplicate, out-of-date or inaccurate records lead to marketing inefficiency, customer or prospect annoyance, and inaccurate management analysis, with the consequences of increased customer defection and poor return on investment from marketing plans and other business initiatives. The adverse affect of poor customer and prospect data standards at the highly sensitive period pre- or post- a merger, an acquisition or a buyout, is magnified many times.

DQM Group’s Data Information Pack audits a target company’s database to check how it complies with:

• the Data Protection Act
• the European Directive on Privacy and Electronic Communications
• The Direct Marketing Association best practice
• Information Security Best Practice (based on ISO 27001 standards).

The DQM Group service then subjects the customer database(s) to a data hygiene and quality assessment which analyses standards in terms of factors such as:

• People and businesses that have moved location
• People who have died
• Firms that have ceased trading
• Duplicate records
• Out-of-date or inaccurate records
• Incomplete records
• Market coverage.

In addition DQM Group offers the option for customers to have the value of their data independently measured as part of the Data Information Pack process.

Adrian Gregory, Managing Director of DQM Group, comments, “Lack of return on investment from acquisitions has been regularly documented. But only now are financiers and trade buyers recognising how critical a part is played by quality, accuracy and legality when a commercial database is the principal company asset. This issue really can determine whether an acquisition or buyout works or not. This explains why we have had very strong interest from end companies, professional advisors and financiers alike.”