THOUGHTS

Value Creation Through M&A: Key to Industrial Transformation in the Post-Pandemic World

Apr 20, 2021

Global industrial and manufacturing companies are redefining their approach to process innovation to find new opportunities to exceed market share. While mergers and acquisitions might remain limited due to the current scenario, industrial companies that act now can emerge stronger in the post-pandemic world when the path to economic recovery and M&A comes into focus.

Focusing on mergers and acquisitions is crucial for businesses to gain an edge in the new normal. Our advanced market research capabilities help ensure you find the right business opportunities to drive market share and gain an edge. Contact us to know more.

Why M&A is crucial for business growth

Industrial organizations and manufacturers have relied upon mergers and acquisitions for value creation. We’ve also witnessed leading businesses close multiple deals over the past decade by adopting a strategic approach to M&A. Moreover, with COVID-19 impacting business operations, ensuring attractiveness to mergers and acquisitions could become a solution to the economic revival of the industrial segments.  

At Infiniti Research, we work with clients to help them analyze the market scenario, improve digital maturity, adopt new technologies, and find new M&A opportunities that can help gain an edge by differentiating themselves from their competitors.

As industrial companies are rethinking their growth strategies for the post-pandemic environment, our experts are noticing a strong inclination toward M&A activities as a solution to their quests for value creation. We further expect to see several trends in M&A that can help companies achieve their goals and drive outcomes in the new normal.

Trends impacting M&A activities in the industrial segments

Our market research experts have identified the top three trends that businesses in the industrial sectors, including automotive manufacturing, equipment manufacturing, and semiconductors, must consider as they plan their M&A and market expansion activities.

Digital manufacturing

Businesses usually focus on leveraging advanced technologies like IIoT and process automation to automate processes. With new digital manufacturing solutions paving their way into the industry, companies in the broader industrial segment could achieve significant revenue gains. Hence, it is evident that successful organizations will bounce back by digitally transforming themselves, the way they showcase products, and how they collaborate and conduct M&A programs.

With mergers and acquisitions becoming a top priority for businesses, it’s essential to note that those who adopt the right approach to market scanning and opportunity analysis will benefit the most. Request a free proposal for expert assistance and strategic M&A support.

Connected devices

Connectivity and ongoing digital transformations will significantly impact and shape trends in the industrial sector in the new normal. With innovation transforming the sector, achieving widespread results will require a complete overhaul of global infrastructures. This can be achieved with M&A becoming a crucial success factor. However, as conventional boundaries blur, connectivity through the use of IIoT is likely to proliferate, and disruptions caused by the COVID-19 crisis will help accelerate the shift.

Supply-chain disruption

While supply chain complexities have been increasing rapidly, not much change has been witnessed in digitizing supply chains in the industrial sectors. The lack of visibility into the entire network of suppliers, as a result, has prevented businesses from analyzing potential vulnerabilities and risks in the supply networks. Today, the pandemic has severely impacted supply chains, making the supply chain a top priority for C-suite executives and stakeholders. As a result, supply-chain digitization will help industrial companies gain greater supply chain visibility and better manage risks.

For more information and industry-specific insights, request a free brochure on M&A analysis.

Driving value through M&A in the new normal

M&A will be crucial for the transformation of many industrial companies in the era. But to ride the next wave of M&A, businesses must stay prepared and adopt a few strategies today to succeed in the future.

Rethink business priorities – Analyzing the ability to cater to different segments, reviewing the financial and organizational abilities, and understanding the economic landscape will aid businesses in redefining business priorities to meet market needs in the new era.

Revamp the M&A blueprint – Understanding how M&A activities can impact business processes will help businesses revisit the M&A blueprint and make changes to meet their end goals.

Focus on value creation – Finding new business opportunities for organization-wide transformation is crucial for businesses looking to drive value in the post-pandemic era.

Set up dedicated M&A teams – Setting up dedicated M&A teams and enhancing capabilities to conduct in-depth market scanning will help accelerate the process.

Request more information to understand the benefits of M&A analysis for your business.

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