IT as a driver of M&A success
Businesses today are under more pressure than ever to deliver value to stakeholders, particularly when undertaking bold initiatives such as mergers, acquisitions or asset disposals.
This is true not only for corporate acquirers but also for private equity (PE) firms, whose strategy is leaning toward add‑on acquisitions as a means of growing their portfolio companies.
Under the current economic conditions and the rising cost of debt, management teams will require additional effort in restructuring or streamlining operations of acquired businesses to deliver success in the absence of financial engineering.
Information Technology (IT) is fast becoming a key lever which management can use to deliver operational benefits — whether in reducing operational costs, entering emerging markets or scaling their business across multiple geographic regions.
With advances in technology and its impact on today’s business models, companies are increasingly pushing the boundaries to remain competitive. IT is one key area to do this — businesses need to view IT as an enabler rather than a cost centre.
All of the strategic initiatives behind a transaction rely on IT. Businesses can no longer ignore IT or view it as a back-office function if they want to achieve maximum value.
We have surveyed 220 senior corporate and private equity executives across Europe about the role of IT in the transaction process. Our aim was to uncover the common factors that help to drive deal success.
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