How Analytics Affect M&A Transactions

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While there’s plenty of talk about the growing role that data analytics is playing in mergers and acquisitions, we wanted to assess how
important it is-from the perspective of corporate leaders. That’s what this survey is all about. For this issue, we surveyed 500 corporate leaders
(director–level or above) at U.S. companies with over $10 million in annual revenue, about analytics. Below we’ve shared some
high–level survey results, on everything from where and how analytics is being used in the deal making process, what role analytics
may play in the future and much more. One thing is clear: Analytics is already playing a role, and for most, they’re just getting started.
Deloitte M&A focus on: Analytics
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Is anybody actually using
data analytics in M&A?
Yes! In fact, a majority of the
companies surveyed are using
technology-driven data analytics.
Where does it matter most?
Survey respondents indicated that data
analytics is most used in the strategy
development phase – but other areas
rely on it heavily as well.*
*Multiple answers allowed
How exactly is analytics being used?
Respondents are using data analytics
primarily in analyzing customers and markets,
and workforce/compensation issues.*
*Multiple answers allowed
What role could analytics play
in the future?
The leaders we surveyed strongly
indicated that data analytics could be
very or somewhat important over the
next three years.
Stages of the M&A lifecycle where
using data analytics is most valuable
We have increased our use of analytics somewhat
We have increased our use of data
analytics significantly
We haven’t changed our use of data analytics
We have decreased our use of data
analytics somewhat
Yes, it’s a core component of our M&A analysis
Yes, in select areas of our M&A analysis
No, but considering it
No
Don’t know/Not sure
Is analytics usage on the
rise – or is it declining?
The survey results indicate that analytics
usage is increasingly used as a tool in the
deal making process.
34%
30%
17%
1%
40%
28%
12%
9%
11%
64%
Strategy development
49%
Target screening
47%
Integration
42%
Due dilligence
40%
Transaction execution
21%
Divestiture
Analysis of customers
and markets
Analysis of workforce
and compensation
Vendor analysis
Analysis of contracts and
legal agreements
Analysis of intellectual
property
Analysis of plant, machinery
and real estate
Synergy identification
and sizing
64 %
55
43
41
38
37
35
%
%
%
%
%
%
61%
Very important
Somewhat important
A little important
Not important at all
Don’t know/not applicable
22%
5%
2%
9%
@DeloitteMnA
www2.deloitte.com/us/mergers-and-acquisitions