While the pandemic seems to have parked a permanent cloud of uncertainty over all our heads, one thing is certain according to experts – now is the best time to be in the software business. Companies have been acquiring Automation businesses left, right, and center. There have been more than 175 acquisitions within the Hyper Intelligent Automation space, out of which 70% have transpired in the last 3 years alone. Mergers & Acquisitions seem to be the most preferred route for companies to not only strengthen their capabilities, but also to future-proof their businesses against disruptions like the ongoing COVID-19 pandemic.
So, what are the ingredients that ensure sellers get acquired? How can sellers go about building a differentiated and scaled platform, to entice potential buyers? For one, companies that keep their focus fixed on credible transformation proof points – such as technology sophistication, long-term vision, customer footprint, GTM, etc., will attract more suitors. Another sure shot way to be the hot cake in the market is to be customer-obsessed – building communities around products and platforms.
The process does not end there, however. What are the metrics that buyers keep an eye on? How is change management handled once the acquisition has happened? Why should cultural due diligence even be on the buyers’ radar when acquiring an asset? Will such M&A deals become the norm across the Automation landscape, giving rise to a consolidation of the market?
These are some of the burning questions answered and deliberated on by the who’s who of the Automation world, at our recently concluded marquee Automation M&A roundtable. Here are a few key insights that emerged.