A digital M&A suite can provide several benefits that can help M&A teams and organizations maximize value creation in M&A deals. Here are some key features and capabilities of a typical digital M&A suite:
Real-time data management:
A digital M&A helps
data and external data
in real-time, providing up-to-date information on various aspects of the deal, such as financial performance, operational metrics, as well as
market trends. This can help organizations make informed decisions and identify opportunities for value creation and influence deal values along the process. Missing to manage data in real-time puts a realistic deal valuation and deal execution at risk.
Predictive analytics: Predictive analytics, as part of a
digital M&A suite,
identify potential risks and opportunities in M&A deals. This can help organizations identify potential value creation opportunities and develop strategies to mitigate risks. Value can be created if a business unit of the acquirer offers complementary products to a business unit of the target company and the customer can now buy those complementary products with more ease from company that has been created or adapted during the deal.
Automated workflows: A digital M&A suite enables teams to automate various tasks in the M&A process, e.g. during due diligence, data analysis and reporting. Collecting data, analysing data and creating reports are tasks that typically require a lot of manual effort. Automating data gathering and creating standard status reports can help M&A teams and organisations save time and resources and focus on more strategic tasks that add value to the deal.
Centralized database: A digital M&A suite provides teams with a central database in which all transaction-relevant data is available in its most up-to-date version. This can be pipeline data, due diligence information or implementation actions and tasks during integration. This can help companies manage the M&A project more efficiently and better manage potential value creation opportunities.
Business transformation and synergy management: A digital M&A suite can help organizations plan, track, and report value creation with an end-to-end solution. This can help organizations steer the project in the right direction and achieve their value creation goals with regards to transformations or creating synergies between merged business units.
Real-time collaboration: One of the biggest advantages of a digital M&A suite is the ability to collaborate in real time with all parties involved in the M&A process. This includes both internal and external parties such as the legal, finance and due diligence teams as well as the target's management. This also applies to the post-merger integration phase in order to orchestrate all integration activities and obtain full transparency on the degree of implementation of the synergy measures at any time. By using a digital M&A suite, all parties involved can access the same information at the same time, which can contribute to faster decision-making, more efficient due diligence and post-merger integration. This in turn leads to lower costs, less effort and budgets, and higher value.