Four digital investments that can help deliver value in M&A

It’s no secret that companies across the industry spectrum are doubling down on going digital, and M&A can play a critical role in transformation. And it doesn’t necessarily have to be a big deal. In some cases, smaller transactions can help companies keep pace with innovation and bring change down the road, even if not considered “transformational” at the outset.

But where exactly should you look to help drive digital transformation through deals? Here are four important areas.

Virtual communications

The COVID-19 pandemic led many different types of companies to rapidly advance their communications capabilities to better connect employees and customers. From healthcare to financial services to retail, those investments will only increase and change how acquirers value potential targets. Even in industries where it isn’t possible for some work to be remote, such as manufacturing and agriculture, there still are offices and functions that will be assessed for flexibility and efficiency.

Cybersecurity

Many executives already understand the importance of investing in cybersecurity and data privacy. Data breaches have previously affected acquisition prices, and growing concerns by consumers and governments will almost certainly drive more cybersecurity investments.

Artificial intelligence

AI is seemingly everywhere, expanding well beyond the tech industry to many sectors. Whether it’s a seller trying to boost the value of a business or a buyer trying to determine an asset’s true value, how well an organization harnesses the power of AI to help enable operational productivity, strengthen customer relationships and better position itself for growth is increasingly important.

Talent

Technology without people who know how to use it doesn’t help anyone. Whether you’re an acquirer or a potential target, consider ways to upskill your employees. That means pointing to investments that anticipate the right skills for the future and lay a foundation for constant learning and development. How well a company does that is playing a bigger part in determining its value — today and years from now.

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Colin Wittmer

Colin Wittmer

Incoming PwC US Chief Financial Officer, PwC US

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