Macroeconomic headwinds signal difficulty in the 2023 dealmaking market. In addition to the total value of deals falling by 37% last year, companies are navigating an increasingly competitive market as the gulf grows between valuation expectations of buyers and sellers. Diligence and integration have even less of a margin for error given limited access to funding. Companies can’t afford for LOIs to fall through or for deals to deliver lower value than expected.
Fortunately, new technologies are on the rise that can help tackle every phase of M&A. In a recent PE-CXO survey, 90.5% of executives said emerging technology is playing a role in their M&A strategy. To maintain a competitive edge in a fierce dealmaking market, CXOs should leverage technologies such as artificial intelligence (AI) and machine learning (ML) to maximize efficiency, value creation, and synergy.
“84% of C-suite executives believe they must leverage artificial intelligence to achieve their growth objectives.”
— AI: Built to Scale (Accenture)
Deal Sourcing
As part of the deal sourcing process, successful CXOs will leverage data to ask probing questions, such as:
- How has this company been able to achieve its growth?
- Are there specific customer segments, products, or markets that we’ll need to maintain during the mer...