Digital M&A: success factors of M&A deals in the digital space

Abstract

Over the last years corporate M&A transactions involving the so-called digital natives - companies with new digital business models have increased significantly. However, these digital deals differ significantly from deals with traditional companies. This project analyzes the differences between traditional and digital deals, key success factors of online based business models and to develops a guidance framework for dealmakers in the digital space by conducting academic and industry research combined with detailed expert interviews and a broader expert survey. 20 case studies from digital M&A deals in the period of 2012-2015 are used to test the findings and initial hypothesis about digital deal success. Key findings include insights into the changing business environment of digital business models, trends as well as key metrics and factors that are associated with successful digital companies.