Corporate Dealmaking and M&A
Corporate dealmaking encompasses all activities both inside and outside of the bargaining table, which aim to bring together two or more parties to achieve a common purpose. This may include mergers of corporations and the sale or purchase of an asset, and a business partnership. Corporate dealmakers are responsible for identifying strategic gaps, determining which companies that are best placed to fill them, and then negotiating the transaction to close the gaps.
The most successful corporate M&A departments have an experienced team and a permanent place at the table of the executive. They are accountable for the development and implementation of M&A strategies. In reality, the top companies such as 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 resources or capabilities.
As technology advances as technology advances, so do the methods that M&A teams identify potential partnerships and acquisitions. For instance, artificial intelligence can help them quickly and efficiently analyze huge amounts of data to find synergies in deals. Virtual data rooms and collaboration tools allow M&A teams to share information with key stakeholders in different locations.
Integrating value into an effective M&A strategy is also part of a successful M&A. Unfortunately, many acquirers struggle to meet the M&A targets they set for their acquired businesses. The goal of increasing sales and revenue may be accomplished however, it comes at a cost. Between 80 and 90% of employees are laid off after a M&A.