Corporate dealmaking covers the entire range of activities occurring at and away from the negotiation table that seek to bring two or more parties to achieve a common objective. This could be the merger of two companies, the sale of an asset or business partnership. Corporate dealmakers are responsible for identifying strategic gaps, determining the companies best positioned to fill them, and then negotiating the deal to fill the gaps.
The most successful corporate M&A departments have an experienced team and a permanent seat at the table of the executive. They are accountable in establishing and executing M&A strategies. Top companies like Thermo Fisher Scientific or Constellation Brands, for example have M&A teams that are constantly moving, constantly seeking opportunities to fill gaps in strategic planning.
As technology improves also do the methods used by M&A teams determine potential partnerships and acquisitions. Artificial intelligence, for example, can help them quickly analyse huge amounts of data to discover synergies among potential deals. Virtual data rooms and collaboration tools allow M&A teams to share information with key stakeholders in various locations.
Integrating value into an effective M&A strategy is another aspect of a successful M&A. In reality, many acquirers struggle to meet the M&A goals they have set for their acquired businesses. They may be able to achieve the sales growth and revenue growth they planned however, this success comes at a high price between 80 and 90% percent of employees from acquired companies are let go after an M&A deal.