The digital revolution is changing the dynamics of M&A transactions. IT used to represent a cost that needed to be managed and controlled as two organizations came together. Today, IT and digital capabilities are often the driving force behind the transaction.
Digital talent can also be a source of value. A target company with a large cohort of data scientists, cloud architects, or full-stack developers can be particularly attractive for a company lacking technical depth. However, this talent must be tied to increased shareholder value, such as increased revenue, decreased cost, or more efficient use of capital, to be a justifiable aspect of the deal rationale.