How Artificial Intelligence enhances mergers and acquisitions
The use of artificial intelligence (AI) is transforming how tech assets are evaluated for mergers and acquisitions (M&A) through more efficient, accurate, and predictive analyses.
M&A involves complex activities across multiple phases, requiring cohesive cooperation within a competitive timeframe. However, technologies like AI and data analytics have emerged as crucial drivers for successful M&A transactions. As Kevin Knoepp, operating partner and CTO at Trilogy Search Partners, notes, these tools significantly accelerate each step of the M&A process.
Achieving success during 'transparent moments'
There are certain moments throughout a businesses’ lifecycle where security leaders need to have a clear view into their cloud infrastructure. One example is during mergers and acquisitions processes, when it’s crucial teams not only understand their own organization’s security posture but also that of the company being acquired. Still, a recent Forescout survey of IT and business decision-makers found that 65 percent of respondents regretted an acquisition their company made because of an overlooked cybersecurity issue.
Marriott International’s 2016 acquisition of Starwood Hotels set the company up to become the world’s largest hotel chain. However, it later emerged that Starwood’s reservation system had allowed unauthorized access to cybercriminals since 2014, leading to a large-scale (and very expensive) data breach in 2018 -- a clear example of why transparency is key during M&A. If Marriott had known that Starwood’s IT infrastructure had been compromised, they could have sought ways to remediate or otherwise address the issue and revised the proposed transaction accordingly. Instead, they were penalized heavily by regulators and were hit with lawsuits from customers.