Today, gathering and packaging basic company data from a seller and sharing it with multiple bidders remain a clunky, manual, and time-consuming process. But innovative data cloud solutions are becoming commonplace and could help solve many of these issues.
In a new KPMG report, How data cloud can disrupt M&A, we envision a data-cloud-powered deal market with less information asymmetry, less friction, and more rapid transactions. We believe deal makers who take advantage of data cloud could emerge as winners as they create greater sustained value through M&A.
If you’re a buyer, imagine instant access to the data needed to make a quick go/no-go decision on a bid. If you’re a seller, imagine attracting more bidders by making diligence easier and faster. Benefits of using data cloud platforms exist across all stages of the deal cycle: buy-side diligence, synergy sizing and planning, integration, performance improvement, portfolio enhancement, and divestitures. The race is on to seize the data cloud opportunity for M&A. Don’t be left behind.
Six benefits of using data cloud technology for M&A
Better diligence at lower cost in less time
Greater volume and quality of analyses, with less time and effort, Less need for dedicated IT infrastructure for each bidder.
Greater synergy sizing and planning
Better cost benchmarks, more reliable revenue synergies, and more predictive pipeline and churn analyses.
Less value leakage during integration
Less handover issues from diligence. Greater speed/quality of synergy capture. Easier to find additional upside potential.
Accelerated performance improvement
Faster to expand prior data sets from integration. Easier access to external data. New ability to monetize proprietary data.
Faster Portfolio enhancement
Easier to share data among PE-portfolio companies, or corporate business units, and with trusted channel partners.
Easier to divest and separate
Deeper, more credible value propositions. Faster to evaluate for buyers. Less IT entanglement during separation.