September 14, 2020

German M&A Advisory in the Digital Age

In partnership with FINANCE Think Tank Corporate Banking & Finance

Question: Does digitalization change the work of M&A advisors? Answer: It doesn’t change the nature of consulting, but it can effectively support advisors in individual aspects of their work. But how? Eighteen M&A thought leaders from Germany discussed this very question at a recent roundtable discussion, hosted by the German FINANCE Think Tank in partnership with Datasite.

Enhancements and advancements
Although digitalization may not be fundamentally changing M&A advisory work, digital applications are enhancing the various phases of it, including buyer outreach, mandate acquisition, long list formation, due diligence and deal signing. The experts agreed:

  • The main task of M&A advisors is to create a market around a company and to enable a deal to be closed at a good price. Digital M&A tools can support them in certain areas, for example in research work and client acquisition. But they do not replace any of their core services.
  • In the data room, learning tools can replace more and more manual work from the M&A team, for example through automated redaction. More complex topics, however, must still be processed by the advisor, even in virtual data rooms.
  • Due diligence can provide the buyer with previously unknown added value. Although the digitalization of data does not necessarily speed up the review process, it enables better risk assessment through intelligent digital data analysis combined with human expertise.

The main digital lever for the company's own added value lies in its internal processes. Both in the acquisition of mandates and in the execution of M&A processes, the use of digital tools – especially of CRM systems and cloud applications – can streamline the internal work very effectively.

Download the exclusive white paper, M&A Advisory in the Digital Age, for detailed explanations of the above core findings and of the effects of digitalization on the individual phases of the M&A process.

Panelists:

Ready to Get Started?

You may also like:

Keep the deal moving - even on the move

With the Datasite mobile app, you always know where the deal’s at – wherever you are.

M&A Professional reviewing documents via data room
The ABCs of SPACs and de-SPAC’ed Entities

With the change in market conditions over the last year (increased inflation, interest rates etc.), there is concern that companies who went public via a SPAC in 2020 and 2021 will not be able to continue their business operations due to a lack of free cash flow or will face de-listing because their stock is not in compliance with the NYSE or NASDAQ requirements. These companies may need to explore alternative options, such as rescue capital raises, full company sale to a strategic, bankruptcy, and PE take-private options, etc.

M&A Professionals work on a data room
M&A and digital transformation: Opportunities and challenges in APAC

The pandemic saw a growth spurt in digital platforms. Will the tech sector be able to sustain investor interest in the face of challenging macroeconomic dynamics? Learn more about emerging digital transformation stories from APAC in our expert spotlight blog.

City Skyline