Data Analytics in M&A How data analytics is reshaping M&A

An exponential growth in data availability and processing is enabling deeper fact-based insights in the due diligence phase. Buyers are increasingly using quantitative and predictive insights to support their value hypothesis, which would previously have been largely qualitative. Integrating data analytics tools and capabilities into the M&A team is key – who fails to do so risks being left behind.

When it comes to a transaction, the more refined insights you have, the better. But raw data isn’t refined. It isn’t organized and neat. And it isn’t easy to get to grips with or to drive insights from.

With a potential acquisition or transaction, you have limited time to discern the target’s real strengths and weaknesses. And it’s only when the transaction is completed that you find out the true value of the deal.

This is where advanced data analytics is having a real impact. It transforms raw data from inside an organization’s systems and externally into structured data. In short, turning data that was previously untapped into a rich mine for deeper analysis and high quality insights.

Extracting key financial data that is deeply buried can lead to higher quality insights to help evaluate the deal opportunity. By collecting, processing and analyzing raw data from a target business, we can use our data analytics tools to uncover those insights quicker and more accurately. Meaning an expedited process and more informed decisions.

For M&A to take full advantage, solutions and approaches must be deeply embedded within the M&A process. This is not without its challenges. We help deal-makers get to grips with this complex and fast-moving area by addressing how to:
 

• Deal with the complexity arising from an increasing number of data sources
• Create value by optimizing efficiency, quality and insights across the various phases of a deal
• Manage the key drivers and challenges of implementing data analytics solutions
• Understand and prepare for the next stage of evolution in this field.

We have established a portfolio of dashboards to help dealmakers along the entire deal lifecycle: from market entry & positioning strategy, deal sourcing, portfolio management, due diligence, synergies and value capture, dynamic reporting, all the way to a PMO Cockpit. Our approach uses advanced analytics tools such as Alteryx, Tableau and PowerBi to optimize data flow and enhance overall data analysis.

Download our dedicated data analytics page here, including a specific report on how data analytics should be used in the M&A environment.