Technology
The ascent of digital is changing the competitive landscape and reshaping business models. Business leaders are looking to acquire or merge to attain new capabilities and gain access to untapped markets to drive growth and increase value.
Irrespective of the size and nature of the transaction being undertaken, technology is impacting the whole of the deal cycle from the identification of the proposed transaction to the monitoring of whether the desired value is being delivered. There are two significant aspects to the changes.
Firstly, changing business models are leading to the acquisition and adoption of technology becoming a fundamental driver for any transaction that an organisation may undertake. Access to either data or technology itself can be a fundamental reason for a transaction; thereby challenging some of the traditional business drivers.
Secondly, research suggests that many deals fail to achieve their value identified at the start of the lifecycle. CFOs, who are often one of the few senior stakeholders involved significantly throughout, need to appreciate how the use of data and analytics tools, in particular, can enable them to more closely evaluate the performance at each stage.
In this article, part of our overall series developed in collaboration with PwC and Jens Madrian, CFO Reactive Technologies, we look at the impact of technology on the deals process and identify four fundamental activities that the CFO should undertake.
Technology
"The impact of digitalisation on the mergers and acquisitions process is one that, potentially, CFOs are ignoring. Yet there is large potential to use the data available, both from within the organisation and externally to enhance the deal evaluation and execution. CFOs need to mindful of this call to action."
Key actions for the CFO
The key actions for CFOs to best de-risk and deliver deal value through strategy into execution are:
1. Driving a consensus and accountability around the deal
2. Implementing a clear and robust finance operation immediately post acquisition
3. Optimising the delivery of value in finance
4. Capturing and reporting the deal value
Read the full article, The role of the modern day Finance function in integrating an acquisition, on our collaborator's, PwC, website.