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Deal-Making in the Digital Era: Purpose, Planning and Commitment

 

Alexis Christofides

Consulting Partner, M&A Services, UK & Europe, TCS

Blake Hansen

Consulting Partner, North America, M&A Services, TCS

As M&A activity picks up, due diligence is the key challenge, finds a TCS survey

A perfect storm of uncertainty influenced every organization in 2020 due to the COVID-19 global pandemic, and the resultant socio-political impact across geographies. M&A activity dipped at the beginning of the pandemic and consumption dwindled in some sectors while new growth emerged in the others. Soon after, M&A activity surged as organizations searched for bargains to strengthen their market position and expand into new ones.

Tata Consultancy Services and Chief Executive partnered to survey 500 business leaders over the course of two months to uncover their plans, challenges and successes with deal-making in these unique circumstances. The key findings include:

  • Many companies have been undeterred in their M&A plans and have picked up pace.
  • Companies considering M&A in 2021 are looking primarily at alliances and acquisitions.
  • Strengthening competitive position and capturing new markets are the two primary objectives in 2021 for deal makers.
  • The greatest challenge in deal making is conducting due diligence in the current environment.