Corporate dealmaking covers the whole range of activities occurring at and away from the bargaining table that attempt to bring two or more parties towards a common goal. This could involve the merger of two corporations, the sale of assets, or a business partnership. Corporate dealmakers are accountable for identifying strategic gaps, determining which companies best positioned to fill them, and then negotiating the deal to fill the gaps.
The most successful corporate M&A departments have an enthused team and a permanent place at the table of the executive. They are accountable in establishing and executing M&A strategies. In fact, top firms such as Thermo Fisher Scientific and Constellation Brands have full-time M&A teams that are constantly in motion actively looking for opportunities to fill their strategic gaps using the right assets or capabilities.
As technology develops, so do the ways that M&A teams can identify potential acquisitions and partnerships. Artificial intelligence, for example, can help them quickly analyse huge amounts of data to discover synergies in potential deals. Virtual data rooms and collaboration tools make it easier for M&A teams to share information with key stakeholders in various locations.
A successful M&A strategy also includes generating value during the integration process. Many acquirers don’t meet the M&A goals they set for the acquired companies. They might achieve the growth in sales and revenue increases they had planned to achieve but this is not without cost between 80 and 90% percent of employees at acquired companies are dismissed after an M&A deal.