With this article we write again about the topic already discusssedthe technological innovation

The role that technology will play in the sector and its impacts are already evident today, both on companies' strategies and on acquisition processes.

The strategies of operators.

Digitalization and automation are transforming the operational and strategic context in which companies operate, and many market actors are resorting to mergers and acquisitions to integrate technological skills and innovative solutions. More specifically, companies are seeking to integrate innovation and digitalization into their business models through the acquisition of startups and technology firms. Digitalization and automation are not just a strategic option; they have become essential for remaining competitive in a rapidly evolving market. M&A operations in this context are often driven by the need to quickly acquire skills and technologies that can transform business operations and improve customer service.

The processes involved in M&A operations.

Data analysis and artificial intelligence (AI) are revolutionizing the way companies evaluate and plan mergers and acquisitions. These technologies enable deeper and more informed analyses, providing significant advantages during the acquisition process. 

For example, the use of tools of data mining and predictive analysis to search for startups and companies in the field of artificial intelligence and machine learning. Through in-depth market data analysis, for example, it is possible to select acquisition targets that may host innovative technologies, enhancing not only one's portfolio but also one's competitive advantage.

Another example are tools of business intelligence and AI to analyze data on business performance and market practices. Before acquiring LinkedIn, Microsoft has used analytics and predictive models to assess how the integration of the social human resources platform could amplify the growth of its product and service divisions.

So, the use ofdata analytics and ofartificial intelligence in M&A operations allows companies to make more informed and strategic decisions. These technologies not only facilitate the identification of acquisition targets but also provide more accurate forecasts regarding to synergies and to post merger results, reducing risks and maximizing success opportunities in M&A operations. The adoption of these technological tools represents a growing trend in the business world, helping to transform the acquisition process into a more scientific and data-driven activity.

Critical issues and risks.

However, the risks should not be overlooked; indeed, despite the evident benefits just described, there are also potential critical issues associated with the integration of technological innovations in M&A operations, which, if not adequately managed, can pose a real risk of failure. Companies may face challenges related to the corporate culture andto the change management and to the integration of technologies.Poor integration could lead to strategic misalignment and the loss of value.

This is why, it is essential that companies involved in these processes pay close attention to strategic change management, clear communication, and the creation of a shared culture to maximize the chances of success and the long-term value of integration operations.

WA