The Eight Commandments of Tech Applied to M&A

Digital is everywhere, even in M&A processes. It is not so much the technical aspects of mergers and acquisitions themselves that are at issue, but rather the way in which buyers and sellers value a company’s technological assets at the time of sale or intend to use them to create future value. Eight themes shape investment decisions and value creation strategies.

1. Technology challenges are proactively addressed during M&A processes
2. Technology is a potential deal breaker
3. Technology as a business enabler, it is crucial to align the IT roadmap with the overall business strategy to unlock full business potential
4. Technology resilience is the top priority among private equity firms’ concerns
5. High visibility on upcoming technology investment is required by private equity firms
6. Cyber security is among the top 3 technology concerns for private equity firms
7. In terms of the reliability and efficiency of financial systems, reporting and consolidation are among the key priorities.
8. Digital and AI are key drivers of innovation and value creation.

Read the full version of this article published in the special 20th-anniversary issue of Private Equity Magazine from January 2025.

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