The Role of Technology in Mergers and Acquisitions

The mergers and acquisitions process is typically a painstaking endeavor — and for good reason! If two companies are going to merge, they better know everything there is to know about each other.

Historically, that “getting to know each other” routine has involved huge amounts of time-consuming labor: sifting through paperwork, performing due diligence, determining company valuations, and more. In recent years, however, new technologies have helped streamline that process — all without sacrificing detail or quality. At Symmetrical, our team is well-versed in the latest digital tools to help make the M&A process successful. Here are some ways technology is changing M&A.

Targeting Acquisition Candidates

The rise of technology in M&A doesn’t just help during the acquisition  process; it can also help business owners determine which companies are potential acquisition candidates. This can be a valuable prospecting tool for a business owner looking to sell, helping jumpstart acquisition conversations with other businesses.

New, Efficient Data Analytics

A new suite of analytics tools has helped make M&A much more efficient. These tools can analyze company data, helping business owners better understand the internal dynamics of the companies they’re partnering with. These data analytics tools can also survey company data and market trends to produce company valuations.

Faster Due Diligence

The rise of AI tools has also helped companies speed up the due diligence process — one of the most important components of any M&A agreement. AI can provide a baseline analysis of risk assessment and financial information, producing high-level takeaways for executives to analyze themselves.

Improved Collaboration

Gone are the days of a physical data room, where all important business documents are stored and reviewed by company leadership. Instead, much of the documentation for M&A can take place in virtual data rooms — secure document storage hubs in the cloud — where relevant parties can review all important documents at their convenience.

Post-Acquisition Integration

As any business owner who’s been through M&A knows, the process doesn’t end when a purchase agreement is signed. Any acquisition needs to account for integrating the target — whether it’s through changing workflow processes or adapting new workplace tools. This can prove especially challenging in our digital era, where transitioning from one software to another is often fraught and convoluted. The good news for executives is that there are a number of tools designed explicitly to help with technological integration during acquisitions. 

At Symmetrical, we work with business owners throughout every step of the M&A process, ensuring they are using all of the latest tools to their benefit. Connect with us to learn how we’re deploying technology to make the M&A process that much smoother.