Corporate Dealmaking and M&A

Corporate dealmaking is a broad spectrum of activities at and away from the negotiation table that seek to bring two or more parties to achieve a common objective. This could include mergers of corporations as well as the sale or purchase of an asset, and a business partnership. Corporate dealmakers are accountable for identifying strategic gaps, determining the most suitable companies to fill them, and then negotiating deals to close the gaps.

The most successful corporate M&A departments have an enthused team, and a permanent place at the executive table. They are accountable in establishing and executing M&A strategies. In fact, top companies like Thermo Fisher Scientific and Constellation Brands have full-time M&A teams that are in constant motion, proactively searching for opportunities to fill their strategic gaps using the right assets or capabilities.

As technology advances as technology advances, so do the methods that M&A teams identify possible acquisitions and partnerships. Artificial intelligence, for example, can help them quickly examine large amounts of information in order to find synergies within potential deals. Virtual data rooms and collaboration tools make it easier for M&A teams to share information with their stakeholders across various locations.

A successful M&A strategy will also create value through the integration process. In reality, many acquirers struggle to deliver on the M&A goals they have set for their acquired businesses. They may achieve the growth in sales and revenue gains that they were targeting but this comes at a high price between 80 and 90 percent of employees at acquired businesses are let go in the wake of a M&A deal.