Technology: The mergers & acquisitions game changer?

21 January 2019

New Accenture Strategy research shows companies in the UK are now pursuing more M&A activity to gain digital capabilities. Digital needs are fast rivalling traditional reasons in spurring M&A events. More than half of UK companies logging M&A activity described themselves as “primarily acquiring digital companies or assets”. Surprisingly, it would appear that M&A is also pushing UK companies to digitise more broadly. 86% of executives surveyed ‘agree or strongly agree’ that M&A activity has forced their business to develop a data strategy.

Many acquiring companies are undergoing their own digital transformations, but most have not digitised completely yet. For instance, only 57% say they have a platform in place to enable new businesses and systems to rapidly integrate, as well as having digital expertise to support the integration.

As UK companies consider the acquisition of businesses for their digital prowess, a second layer to the digital deal dynamic has therefore become apparent: it does not appear enough just to acquire or merge with digital savvy companies; businesses must then subsequently spread that digital savvy across their broader organisation. UK acquiring companies will then become more digital themselves and integrate newcomers more rapidly and effectively.  

So, in summary, a successful digital business acquisition will be achieved by those able to apply digital technologies to their own processes, thus giving them the competitive advantage they need to maintain over their competitors.

Source: www.accenture.com

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If you would like to discuss how we can support you on a business acquisition or merger, please contact Corporate Finance Partner, Laurence Whitehead on 01908 662255 or by email at: laurence.whitehead@mhllp.co.uk