Digital transformation: Global M&A trends and risks

As the head of strategy at a Chinese corporate puts it, “Technology will be one of the most attractive industries for dealmakers, who will include strategic and financial buyers.” Respondents highlight deal drivers that include differentiation of products and services, and the need to counter competitive threats. In addition, a number of respondents predict an uptick in cross-industry tech deals. This is likely to reflect the growing trend towards investments in Industry 4.0 and smart manufacturing initiatives.

Interestingly, nearly half of the respondents who voluntarily raised the topic of digital transformation commented specifically on how they expect tech to transform the deal making process itself, and due diligence in particular. “Due diligence methods will evolve further in 2023,” says the chief investment officer of a US corporate. “Engaging new technology solutions in this process will improve the quality of research and reduce timelines considerably.”

While due diligence is a major area of focus, respondents also point to digital technologies as transforming areas such as communications and – critically – decision making. “A lot of decisions are already data-backed, and I feel that the use of data in decision making will increase in 2023,” says the managing director of a French investment bank.