We recently came across some interesting data while researching the outcomes from Mergers and Acquisitions. Here are some key insights from Deloitte’s Mergers and Acquisitions Trends report 2018.
Corporations and private equity firms foresee an acceleration of Mergers and Acquisitions activity in 2018. After talking to more than 1000 executives, the report points to an active year ahead, with about 68 percent of executives at US headquartered corporations and 76 percent of leaders at domestic-based private equity firms saying deals will increase in the coming 12 months.
Most respondents also believe that the size (63%) of the mergers will either increase or stay the same (34%), compared with deals brokered in 2017.
Impact of Digital Transformation on Mergers and Acquisitions (M&A)
One of the key findings from the report was the impact of new tools and technologies on Mergers and Acquisitions. Almost 2/3 of the respondents (63%) are going beyond traditional technology and using new Mergers & Acquisitions tech tools to assist with reporting and integration.
Rolling into 2018, with digital transformation evolving the business world, we see conventional Mergers and Acquisitions procedures changing. M&A’s are providing corporations an opportunity to modernize and strategically invest in new systems and process.
Mergers and Acquisitions can seem very stressful, especially when considering the complexity of combining two different corporate cultures, separate IT environments, processes and procedures. Additionally, firms are pushed to complete the transition with very aggressive timelines and can lead to the disruption of business operations.
Fortunately, cloud technology can bring some sanity to many Mergers and Acquisitions (M&A) scenarios. By leveraging a hosted private cloud solution, executives have the opportunity to transform their cost structure and enhance their capabilities by saying goodbye to their legacy systems with a pay as you go operating budget model.
Integration and Scalability
When it comes to mergers and acquisitions, integration is of the utmost importance as it determines how effectively a company runs after a successful Merger and Acquisition. Top items on the list include: configuring and managing emails, addresses, calendars, directory services and more. From storage capacity to the number of servers or increasing the size of emails and adding in more users is something that executives don’t have to worry about, as cloud technology is built with the purpose of integration.
With Cloud solutions the process of scalability during a Merger and Acquisition becomes smooth, easy and painless, as the number of users can be increased on-the-fly. Newly acquired businesses can leverage application publishing to replace their own services and extend their applications to the cloud.
Cloud technology also helps provide access to all this information for all users and keeps everyone updated in real time while making sure operations are running smoothly while avoiding downtime and hampering productivity.
IT Support with a Secure Hosted Cloud Solution
Cloud technology provides IT support to companies during mergers and acquisitions (M&A) by providing them with a secure environment consisting of:
- Private Virtual Servers
- Private Virtual Network
- Private Storage
- Disaster Recovery Capability
Take a peek at dinCloud
At dinCloud, we help companies going through M&A leverage the cloud. If you would like additional information, contact us via this form.