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iDeal – Defining M&A Analytics
Data analytics from diligence and negotiations to post-deal
Every merger and acquisition (M&A) decision is driven at least in part by data. Unfortunately, in the past you might not have know the real story behind the numbers until your business was in the trenches of post-deal transition. Today, you have M&A data analytics: Within the typical tight timeframe of most deals, iDeal - defining M&A analytics enables you to dive deep into the data to find out what’s really going on—before it’s too late.
Smarter questions, smarter answers
M&A data analytics is all about asking—and answering—smarter questions throughout the M&A lifecycle. Using iDeal – defining M&A analytics here are some of the types of questions you could be answering today:
Diligence
- What is the true source of this company’s growth? Specific customer segments? Products? Markets? Something else?
- How successful is this company in retaining its customer base?
- Where are margin trends negatively impacted by specific products, locations, or customers?
Negotiations
- What is the specific net impact of decisions reflected in our purchase agreement?
- Which risks are we likely to encounter in doing this deal? (Operational risks, critical employees, SKUs, product lines, geographies, etc.)
- Which employees should be covered by non-compete agreements?
Post-deal
- Where should we pursue renegotiations with customers or suppliers to quickly achieve cost savings or revenue improvements?
- How are customers responding to the change in ownership? How has our risk profile changed as a result?
- What are the results of changes made to the business after the closing of the deal?
How we can help
Deloitte M&A is recognized around the world for its leadership in M&A, from strategy and execution to integration and divestiture—a thorough range of industry focused experience and capabilities. Similarly, Deloitte Analytics has emerged as one of the most important forces in data analytics today, serving global clients across industry with a range of advanced services and capabilities. So it’s natural that we combined our strengths in these two areas to create the most complete approach to M&A deal-related data analytics available today.
iDeal – defining M&A analytics is a combination of tools, processes, and techniques integrated to provide big-picture insights with a microscopic level of detail. We help clients put those capabilities to work through:
- Strategy
- Implementation
- Analysis and decision support
- Integration
- Synergy capture
Bottom-line benefits
iDeal – defining M&A analytics capabilities can generate game-changing benefits for companies when it matters most. Here are a few of those most frequently cited benefits by clients.
Get there faster. In M&A, insights are most useful when they are generated in time to affect decision making. With intuitive interfaces and near real-time insight delivery, M&A data analytics makes it easier to generate and leverage insights.
Enhance the value of data. Today, many M&A-focused analytics insights are used for highly focused moments or decisions. But the value of the data used in these scenarios, combined with 3rd party or external public data, can have an equally important impact in other phases of the lifecycle, such as integration and post-integration.
Go deeper. Too often, surface-level data tells a misleading tale. With the ability to analyze micro-level details and correlate them to macro-level decisions, M&A leaders are better equipped to uncover the real story behind the numbers.
Accelerate the sales and purchase agreement (SPA) process. The process of nailing down an SPA typically engages a wide range of time-strapped participants in a race to complete the agreement. It’s a process that can be inefficient and time-consuming—when time is of the essence. M&A analytics makes it easier to analyze more data and deploy it in a more intelligent manner. Not only is it faster, it’s smarter.
Contact us
For more information on how Deloitte M&A is focused on helping clients with strategy, execution, integration, and divestitures please visit: www.deloitte.com/mergers-and-acquisitions.