Mergers And Acquisitions In The Digital Age
- IJLLR Journal
- Sep 5
- 2 min read
Ms. Garima Juneja, Assistant Professor, Gitarattan International Business School, Rohini, Delhi Ujjwal Joshi, Gitarattan International Business School, Rohini, Delhi
ABSTRACT
The technological revolution has far-reaching changed the mergers and acquisitions environment, which offers unprecedented opportunities and dilemmas for corporate consolidation strategy. This research examines disruption triggered by technology and how it has influenced M&A activity patterns, valuation approaches, and integration in today's business environment.
Digital technologies have enhanced the velocity of deals at the same time as making due diligence processes more difficult. Legacy valuation frameworks lack the ability to measure the value of intangible digital assets, algorithmic competencies, and repositories of data that form key drivers of value in tech- enabled deals. The research examines how acquirers assess digital platforms, user bases, and intellectual property portfolios and finds large discrepancies between traditional finance measures and underlying strategic value.
The study examines industry-specific trends, including the way veteran companies seek digital change through acquisition of fintech firms, e- commerce sites, and AI companies. Cross-border digital M&A activity has accelerated, although increased regulatory scrutiny on data privacy, antitrust issues, and national security implications has raised new hurdles.
Post-merger integration problems have changed significantly, with cultural convergence between classical businesses and digital-born companies being especially challenging. The research investigates effective integration processes that maintain innovation abilities while establishing operational synergies.
Evidence indicates that the success of digital M&A is contingent on acquirers being able to apply conventional models to digital-specific factors such as technology stack alignment, talent retention strategies, and cybersecurity risk analysis. Research dictates that organizations need to build specialized digital M&A competencies to leverage transformation opportunities in the growing interconnected economy.
Mergers and Acquisitions (M&A) is business deals in which firms merge for strategic, financial, or operating purposes.
