Mergers and acquisitions are unavoidable in the modern economy. The Institute for Mergers, Acquisitions and Alliances reported more than 50,000 such transactions occurred in 2017, with more than 7,200 occurring in North America alone. What’s more, the IMAA projected the North American figure would double in 2018, with 16,200 total mergers, acquisitions and alliances.
M&A is also feeling the effects of the growing digitalization of global business. Research from Bain & Company shared in the Harvard Business Review found 75 percent of M&A executives believe digital disruption has a major impact on such operations or forces companies to completely reconsider their strategy.
With the growing ubiquity of digital operations in the M&A world in mind, it’s vital to understand the tools that provide relevant, targeted advantages for companies using them to aid efforts to acquire, merge or closely align with another organization.
3 digital tools that help companies with M&A
1. Virtual data rooms
M&A has placed less emphasis on physical location in recent years. With all of the options at their disposal, businesses simply don’t need to be in the same region, state or even country to join together. While the physical data room – a secure location where staff could conduct their due diligence and review relevant documents related to the M&A process – was an effective choice in the past, it may no longer be practical or effective. Virtual data rooms, which prioritize security while offering access to vital information, offer everyone the chance to complete the necessary M&A work no matter where the rooms are located, Deloitte noted.
2. Flexible, focused IT infrastructure
M&A means the merging of many systems, workflows and job duties, and one of the most important is information technology. A company’s IT infrastructure can mean the difference between a successful, profitable merger and a more logistically and financially difficult one. McKinsey & Company said successful IT integrations provide a 10 to 15 percent cost savings, a major consideration. Organizations that take this approach are more ready to make adjustments and move forward with speed and purpose.
McKinsey & Company suggested streamlining internal IT practices in preparation for M&A activity, then including IT leaders in due diligence activities and developing strong plans for integration following the completion of the merger, acquisition or alliance.
3. Outsourced finance and accounting options
Centralizing and connecting financial data, access to effective reporting, implementation of strong processes and controls and the work of experienced, proven financial and administrative professionals are all major advantages for businesses. Consero offers companies a platform with these benefits and many more through a targeted and effective finance-as-a-service solution.
Having experienced professionals and financial and accounting tools on hand right now means a business can more easily adjust to the changes that come along with every merger and acquisition in the future. Because Consero’s professionals have a wide range of experience, they’re more agile and ready to adapt to change. With powerful and standardized data centralization and reporting structures in place, financial and accounting practices are more reliable and dependable before, during and after the M&A process.
Reach out the experts at Consero today to learn more about how digital tools can help organizations succeed in M&A efforts.