Structuring Technology-led M&A Deals To Protect Value

Key considerations for tech synergies or strategy.

Key points

• Deal origination is now far easier (and not just thanks to AI), as is deal triage. 
• Due diligence in virtual data rooms (VDRs) with AI support is now common, requiring different sensitivities and perhaps even negotiating tactics.
• Data and tech IP must be factored into deal terms. Acquisitions will often be justified by access to proprietary technology and data – ensuring those are coherently packaged and valued is key. 
• In many deals, especially carve-outs, the transitional services agreement (TSA) is now paramount and needs to adapt for tech-specific factors – be that post-deal performance, cyber issues, other liabilities or tech redundancy.