DATA IN M&A
There at least two sides to a merger and acquisition event: the company who is acquiring and the company being acquired. The purchasing company is interested in the value of the company as well as what value will be added to the purchasing company through the acquisition. The company also performs due diligence, analyzing the financial performance. This is all data-driven.
The companies wanting to exit through acquisition are rarely using data appropriately even though there are many advantages to using data:
Accelerate the exit strategy
Align data and KPIs with target purchasing companies
Avoid situations where the purchaser uncovers information that was not known internally
Increase the speed & predictability of the M&A transaction
Reduce the transaction costs
Ensure a more predictable valuation
Whether or not you know if you will be involved in an M&A transaction in the future, there are huge measurable and intangible benefits to developing a good data practice within your company.