Mastering M&A for Accelerated Digital Age Transformation
In response to the confluence of the physical, digital, and biological worlds, more and more companies are adopting what TCS calls the “Business 4.0” paradigm, leveraging new technologies and approaches for greater outcomes. Mergers and Acquisitions (M&A) are increasingly a strategic tool of choice to close Business 4.0 gaps in products, services, capabilities, and culture. Virtually every industry is seeing increases in high-tech, cross-sector, and cross-border deals to rebalance growth portfolios, enter new markets, enhance customer experiences, and more. Leveraging best in class talent, methods and tools is more important than ever to amplify and accelerate for the both short and long term success.
Learn about TCS’ proven M&A capabilities.
Strategic Alignment and Synergy Management: Ensuring M&A Success in the Age of Disruption
TCS partnered with Chief Executive magazine to survey nearly 300 CEOs at U.S.-based companies for their perspectives on and experiences with mergers, acquisitions and divestitures. Over the last five years, M&A activity has been at near record-breaking highs, indicating traditional sources of revenue are at risk and new revenue opportunities are emerging. This report reveals our findings and shares insights into what CEOs are looking for in M&A, as well as what they say must go right and what often goes wrong.
M&A in the Era of Business 4.0
TCS and Chief Executive magazine brought C-Suite executives together for a roundtable on M&A activity. This discussion aligned with our recent research findings that CEOs agree that buying into Business 4.0 tech transformation is a leading deal-making rationale today. And to succeed at digital M&As, executive leadership is more important than ever, including mastery of the cultural aspects of integration.
Learn about CEO insights into the M&A competitive imperative.
Unlock Value in M&A
Though maximizing synergies is the top financial consideration, CEOs report managing synergy realization is the most challenging phase. This is often tied to two main causes: the identification of unrealistic perceived synergies before the deal and the Post-Merger Integration (PMI) execution. Therefore during the planning process, it is critical to evaluate options and scenarios, and agree and commit to the right end-game and timing to ensure the synergies needed are delivered.
Creating Value Through Divestiture: the Devil is in the Details
Though divestitures are more complex than often imagined, they can enhance sellers’ focus on their core businesses while providing new resources for pursuing growth strategies. To excel at divestitures, a systematic and proactive planning and carve-out approach is needed to minimize disruption and maximize shareholder returns. Disentangling and unwinding the technology footprint of their business operations to divest the targeted assets is a common obstacle for sellers to surmount. To expedite and improve outcomes, three alternative approaches exist for companies to consider.
The Unique Challenges of Digital M&A
Companies are increasingly leveraging M&A to drive digital competitiveness, however the traditional rules and approaches are being rewritten. A successful track record in harnessing traditional M&As is no guarantee of success in integrating a digital asset or in leveraging it to accelerate digital transformation. Getting the valuation and integration strategy right are two key factors for achieving the competitive advantages inspired by the deal.
Understand pricing considerations and integration options.
Execution Priorities in M&A
Our research shows CEOs identify culture and talent as the two most challenging areas to address during execution. And CEOs admit they are – and should be – held accountable in assembling the right team from the start to ensure all stakeholders’ voices are reflected in the measures that matter to successful transformation through M&A.
Learn more about combating execution challenges.
Starting With End in Mind to Select Better M&A Targets and Improve Outcomes
In today’s world of low-cost capital, competition for M&A opportunities can easily come from competitors willing to make decisions with limited data. Accelerating due diligence is crucial, and begins with having a clearly articulated M&A strategy.
Learn about getting Due Diligence right.
M&A in the Ecosystem Era
As traditional businesses embrace the ecosystem era, previously accepted value propositions are disrupted. M&A will enable success, placing much greater emphasis on creating value and revenue across the network. How can M&A help your organization tap into unconventional niches and create new business model opportunities? View our recorded webinar to learn how to address the speed of acceleration with M&A strategies.
The Evolving M&A Responsibilities of CFOs
As M&A events shake up the competitive landscape, more weight and responsibility is falling on the CFO’s shoulders. Beyond the traditional roles of financial and tax due diligence, CFOs and finance teams are evolving to take on a broader visions of what success looks like in a Business 4.0 world. More and more, success relies on a future-proofed technological but business outcome-focused foundation that CFOs must shepherd.
Learn more on CFO strategies for M&A success.