#mergerautomation: Quickly review existing tools to automate M&A tasks
Everybody feels the pressure to digitize. How can you best handle it when you are responsible for the M&A process? Say, you would like to get information which tools are available to automate this task. You could start searching, find some tool vendors, look at a few in more details by coordinating meetings. A tedious process.
Domain model can help
I am working on a domain model, which will be available in an online tool, that does two things: first, define all tasks in the M&A process. Second, it allows to map existing tools to this model, showing which tools are available for which tasks.
What would it look like?
Let us have a look at an example. In the early phase of the M&A process there is a task called Processing the long list. You want to automate it. This task aims at providing a long list of potential targets and ways to select a subset of targets resulting in a shortlist. So, how would the information about a tool look like? See the information below on three tools that could automate this task.
Task Processing the long list
The task has the following goal(s):
Shortlist of targets: created
The task has the following objectives:
Information asymmetry: minimized
Automatability
This task is partially automatable. Tools are available.
Task description
From the set of potential targets in the long list, a subset is formed as a short list. This is done with the help of further, detailed information about the targets. After formulating decision criteria for determining the shortlist, the business models, products and services, their value proposition and more precise financial data of the target companies are looked at in greater detail and a comparison of the target companies is drawn up. If possible, the business models of the target companies are compared with the business models of the buyer company and the first signs of a fit between buyer and target company are derived.
Tool/Service: EY Embryonic
Provider: EY
What is offered: EY Embryonic is only offered as a service. Machine learning is used, automatic language processing (NLP) is used. Advanced Analytics are used. Customer access to the tool is not possible.
USP: has licensed all expensive databases like CapIQ, CBInsights, Thomson-Reuters, and has an impressive user experience
Summary: Impressive analysis with graphical navigation of the ecosystems of sponsored and financed companies in a given environment.
Tool/Service: Alphasense
Provider: Alphasense
What is offered: Alphasense is only offered as a tool. Machine learning is not used. Automatic language processing (NLP) is used. Advanced Analytics are not used. Customer access to the tool is possible.
USP: allows you to view companies and sentiment based on a variety of sources.
Summary: Based on a multitude of sources, a search can be carried out in exactly one language for a company. Available information, news and the sentiment re-garding a company will be displayed.
This example was presented in conjunction with my new book “Automation of Mergers and Acquisitions“.
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