Corporate dealmaking covers the whole range of actions at and away from the bargaining table that aim to bring two or more parties together in pursuit of a common goal. This could include the merger of two corporations, the sale or purchase of a property, and a business partnership. Corporate dealmakers are responsible for identifying strategic gaps, determining the companies best positioned to fill them, and negotiating the transaction to close the gaps.
The most successful corporate M&A teams have dedicated resources and a seat at the executive table to formulate and execute M&A strategies. In fact, top firms like Thermo Fisher Scientific and Constellation Brands have full-time M&A teams that are constantly on the move actively looking for opportunities to fill their strategic gaps with the right assets or capabilities.
As technology improves also do the methods used by M&A teams can identify potential partnerships and acquisitions. For instance, artificial Intelligence can assist them to quickly and efficiently analyze massive amounts of data in order to identify synergies between potential deals. Virtual data rooms and collaboration software allow the M&A team to share information across different locations.
A successful M&A strategy will also create value through the integration process. Unfortunately, many acquirers struggle to meet the M&A targets they set for their acquired businesses. They may achieve the growth in sales and revenue growth they planned however, this success isn’t without a price between 80 and 90% percent of employees at acquired virtual data room services companies are dismissed after an M&A deal.