Mergers and acquisitions are time-intensive even in normal years. They can suck resources away from companies, causing lulls in business. That’s nothing executives want during a trying year of travel restrictions, work-from-home policies, and quarantining.
All the uncertainty made 2020 a turbulent year for deals: After a second-quarter near halt in activity, the second half of the year picked up by 88% from the first half, with companies executing $2.3 trillion in deals globally since July, Inc. reports.
Before the pandemic, businesses exploring a merger were already conducting much of the financial due diligence virtually. However, a report by EY suggests that trend is getting even deeper, with partners turning to more data-intensive due diligence efforts.
Businesses that joined forces over the past year found innovative ways to conduct due diligence and integrate their teams. Companies are getting granular, looking even at lines of code and historical transaction data.
But others decided to find ways around due diligence restrictions in order to ensure their leadership teams gelled—and could finalize terms of the deal face to face.