How data analytics is reshaping M&A

20-01-2023
Read our insights into the revolution that is taking place in data-driven deal-making.

An exponential growth in data availability and processing is enabling deeper fact-based insights in the due diligence phase. Buyers are increasingly using quantitative and predictive insights to support their value hypothesis, which would previously have been largely qualitative. Integrating data analytics tools and capabilities into the M&A team is key – who fails to do so risks being left behind.

Data analytics enables stronger focus on value creation

Data analytics drives the shift from a historic risk perspective to a future looking value creation perspective. It is a key element of Elevate, KPMG firms’ unique way of identifying and quantifying value for client transformations, turnarounds and transactions. A portfolio of state-of the art, sector specific analytical building blocks give a structured approach to combine profound knowledge of deal professionals with the art of data analytics.

Benedikt Lindheim

Director, Deal Advisory

KPMG Switzerland

Martin Lenke

Senior Manager, Deal Advisory

KPMG Switzerland

Data analytics is changing the M&A game

This is where advanced data analytics is having a real impact. It transforms raw data from inside an organization’s systems and externally into structured data. In short, turning data that was previously untapped into a rich mine for deeper analysis and high quality insights.

Extracting key financial and operational data that is deeply buried can lead to higher quality insights to help evaluate the deal opportunity. By collecting, processing and analyzing raw data from a target business, combining it with external data sources, we can use our data analytics tools to uncover those insights quicker and more accurately. Meaning an expedited process and more informed decisions.

Embedding data analytics into the M&A process

For M&A to take full advantage, solutions and approaches must be deeply embedded within the M&A process. This is not without its challenges. We help deal-makers get to grips with this complex and fast-moving area by addressing how to:
 

  • Deal with the complexity arising from an increasing number of data sources
  • Create value by optimizing efficiency, quality and insights across the various phases of a deal
  • Manage the key drivers and challenges of implementing data analytics solutions
  • Understand and prepare for the next stage of evolution in this field

We have established a portfolio of solutions to help dealmakers along the entire deal lifecycle.

Get more insight

Contact us if you want to find out more about how data analytics can be used in the M&A environment.