In 2020, conglomerates around the globe are expected to continue gobbling up tech upstarts –
whether in an effort to modernize distribution channels, improve
enterprise security, integrate Artificial Intelligence and/or
Machine Learning capabilities, stay abreast of technological
convergences, or for any number of other reasons.
Tech acquisitions come with unique challenges, however, as most
target companies don't fit the typical brick and mortar M&A
mold. For large organizations accustomed to thorough diligence
processes, a tech startup's youth often means that limited
financial and commercial documentation are available to be
reviewed.
Yet, conglomerates can be successful making acquisitions in the
tech space, so long as they ask the right questions and understand
how to adjust their due diligence efforts accordingly.
