Introduction to Digital M&A

Introduction to Digital M&A

Using software to develop corporate M&A capabilities

Using Technology to Succeed in Acquisitions

Acquisitions have become a major source of growth and transformation for large companies. Still, up to 70 percent of deals fail to meet their targets. With volume approaching 100,000 deals, amounting to USD 5 trillion annually, the problem lies with the overall process and methodology, not individual failures.

Leading companies have started to rethink what is essential for M&A success, including the kinds of tools and working methods that are needed to support the process.

Mega trends driving change include:

  • Pressure for higher M&A productivity and learning from past mistakes
  • Globalization, telecommuting, and technology transforming how companies do business
  • Cross-border M&A and globally distributed teams becoming the norm
  • Increasing transparency of processes and decisions

M&A is the only major business process stuck in the 90s, with its lack of supporting information systems or consistent standard of practice.

In traditional (analog) M&A,

  • There is no centralized source of reference, but a lot of information sharing that relies on phone conversations, emails, hallway conversations, and insecurely shared files.
  • There is no systematic approach that is continuously improving and includes processes to prevent costly mistakes.
  • Work is hard to delegate and there are a lot of people who are bottlenecks rather than adding value.

What is Digital M&A?

Digital M&A is an improved way of working, enabled by digital technology. With digital M&A, information becomes centralized and management becomes easier.

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In digital M&A,

  • Information and best practices are shared
  • Goals, intent, decisions, and results are better communicated
  • Standard process vs. unique challenges are better recognized
  • Relevant information is easily found anytime, anywhere
  • Agile process dimension gains ground
  • Modern IT systems revolutionize and clarify the process

A digital M&A platform

  • Shows all current cases and their stage in the process
  • Guides the workflow, where needed
  • Binds documents, communications, and other records stored in different systems to the case and topic
  • Is a powerful communications tool, delivering the right information to the right people at the right time
  • Combines the simplicity of task list creation and the flexibility of project management tools with the repeatability of business process management tools

business process

Business benefits of building an M&A Platform

A proper M&A platform makes M&A a transparent, systematic, and repeatable process with more predictable and successful outcomes. M&A also becomes an organizational capability that consistently improves, producing better results.

More Deals Better Faster = Value creation
Evaluate more targets due to a structured process

Manage multiple cases in parallel

Make better acquisitions through better
evaluation

Execute transactions and integrations according to best practices, with deal-specific objectives

React to deal opportunities more quickly

Use resources
effectively

Capture merger benefits earlier

Meet inorganic growth
targets with less risk

Strengthen M&A as a competitive advantage (repeatable, predictable, accumulation of capability)

Next steps

Read further on how an M&A software platform can help you in the following areas:

Kalle Kilpi
Kalle Kilpi
Hello! I lead product design at Midaxo and always try to come up with new ways to make M&A more efficient and successful. I have studied management and information systems science and have had the opportunity to work with top-tier clients. We at Midaxo work hard to link cutting-edge M&A processes with the latest enabling technologies.You can reach me on LinkedIn or email me at kalle.kilpi (at) midaxo.com