With unprecedented business model disruption across the majority of industries, integrating acquisitions has never been more complicated. But those who prioritize and resource their efforts appropriately are likely to seize a measurable competitive advantage.
Geopolitical issues may dominate the headlines, but corporate boards and senior management are laser-focused on countermeasures against technological disruption and seizing new routes to growth. Those countermeasures will often involve M&A as a faster route to innovation and expansion.
Ultimately, for an acquisition or merger to create value, the combination must become more than the sum of the parts. Realizing that potential relies on best-in-class integration strategies that quickly address risks and seize opportunities and synergies. Understanding this, many companies have developed leading-practice M&A playbooks and dedicated M&A teams within functions. But with deal premiums high and no evidence to suggest that will change, and as the pace of technological change accelerates, these approaches will need updating.
In our work with clients, we recognize the importance of integration strategies that address this new environment—to master it can mean gaining a competitive advantage over less digitally advanced peers; to fail to do so can mean unfulfilled potential and exposure to new kinds of risk.
- Big data and data analytics
- Omni-channel customer experience and social media
- Cloud computing
- Cyber vulnerability
- Integrating high tech businesses into low-tech parent companies
With the right strategy, we believe companies can rise to the challenge and reap the rewards of effectively and efficiently integrating organizations in the digital age.
Originally published in Harvard Business Review and on ey.com.
EY Legal Services Contacts:
Richard Norbruis – Global Transaction Law Leader
Jean-Christophe Sabourin – Private M&A
Peter Katko – Global Digital Law Leader
Fabrice Naftalski – Global Data Privacy Law Leader