Innovation Is Transforming M&A
Disruptive technology is transforming dealmaking, allowing forward-thinking M&A professionals to thrive by utilizing the best elements of innovation.
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Nothing is changing the lives of people around the world more rapidly than technology, and it is clear that technology’s explosive growth will continue for decades.
Disruptive technology is also transforming dealmaking for M&A professionals, allowing forward-thinking deal-makers to thrive by utilizing the best elements of innovation to complete deals securely, quickly and successfully.
Four key technology trends have changed how we live our lives while also disrupting M&A across the globe. These trends have become powerful tools for M&A professionals who understand and utilize them.
Insight Through Analytics
More than ever, analytics are providing deal-makers with accurate, reliable and fast information that is vital during due diligence. Strong analytics provide deal-makers with high quality data that can drive actionable insights. Effective analytics services should also shorten the decision-making process by using strong visualizations that provide all the necessary information. In fact, current analytics services provide deal-makers with an image that points to needed action before they even get to the office.
21st Century Gold Rush
Organizations that have vast amounts of data and use it strategically are able to realize substantial revenues. However, a data breach can cause immediate damage and long-term distrust. We are all generating vast amounts of data whenever we connect our devices to the internet. Knowing how to securely manage this data is crucial and should be of paramount importance for any technology provider.
Artificial Intelligence Is No Longer the Stuff of Science Fiction
Whether driverless cars or warehouse robotics, artificial intelligence has been a buzzword for the last several years as the technology advances rapidly. But by itself, AI is not an effective tool—it needs to be applied to real problems. Natural language processing and heuristics are forms of AI that can be applied in cutting-edge ways to solve different problems across industries, including M&A.
Robust Due Diligence
Deal-makers across the globe face a variety of challenges that come with M&A, especially in due diligence, which may include thousands—and sometimes millions—of documents written in various languages and located in multiple countries. In this complex professional environment, collaboration and secure document sharing is essential so that colleagues and advisers can work together securely and efficiently.
The security and speed provided by emerging technology has transformed how M&A professionals handle due diligence, and technology continues to evolve to meet the needs of sensitive capital transactions.
Though technology has provided a tremendous leap forward for M&A, there is no doubt more developments are on the near horizon, thanks to constant innovation. This innovation will make due diligence more secure and easier than it has ever been, allowing corporations and their advisory teams to concentrate on the more important, high-value work associated with capital transactions.
This article originally appeared in the November/December 2018 issue of Middle Market Growth. Find it in the MMG archive.
Mark Williams is the chief revenue officer, Americas, at Merrill Corporation, a global leader providing SaaS collaborative software and full- service solutions for corporations and their advisers.
