DIGITAL SOLUTIONS IN THE MERGER AND ACQUISITION PROCESS: IMPACT ON DEAL VALUATION

Abstract

The article provides a detailed analysis of the impact of digital solutions on merger and acquisition (M&A) processes, particularly emphasizing their role in improving deal evaluation methodologies. As business processes continue to digitize, technological innovations have become essential for enhancing decision-making efficiency and accuracy in M&A. The integration of advanced technologies such as artificial intelligence (AI), blockchain, machine learning, virtual data rooms (VDRs), and big data analytics has revolutionized data analysis and scenario modeling, leading to more informed and strategic decisions. Digital solutions in M&A evaluation enable more precise forecasting of future financial outcomes. Blockchain technology ensures transaction transparency and reliability, reducing fraud risks and simplifying due diligence. This is crucial in deals involving multiple parties and significant data volumes. Virtual data rooms facilitate efficient access to confidential information, speeding up negotiations among deal participants and enhancing data exchange security. Moreover, big data analytics uncovers hidden patterns in financial flows and operational activities, greatly improving decision quality. These insights help companies identify potential risks and opportunities early, leading to better outcomes and optimized investment returns. The article also details broader benefits of digital solutions in M&A, including reduced financial and operational risks, accelerated due diligence, lower audit costs, and improved company valuation accuracy. These advancements lead to more streamlined and cost-effective M&A activities, providing firms with a competitive edge. Looking forward, the article suggests that continued development of digital technologies will not only enhance deal evaluation mechanisms but also transform the entire M&A ecosystem. This transformation is expected to yield a more transparent, efficient, and innovative approach to deal-making. As technology advances, adopting these digital tools will likely become standard practice, reshaping M&A landscapes and driving new value creation. The future of M&A lies in leveraging these innovations to facilitate smarter, faster, and more reliable deal-making processes.