Metals leaders considering merger and acquisition (M&A) investment deals in 2023 face new challenges as they navigate the process.
After an influx of activity during the COVID-19 pandemic, M&A deals remain stable in 2023, despite the strengthening of the U.S. dollar and rising interest rates. Metals companies in particular have strategically invested downstream in the supply chain to increase margin and in nearshoring and reshoring opportunities to reduce supply chain disruption and minimize transportation delays.
As metals leaders turn to M&A deals to achieve their business goals, it’s critical that they execute proper due diligence, especially in the face of economic headwinds. But it’s no longer enough to simply evaluate a company’s financials, location, customer reach, and other basic metrics to gauge the health of a business.
In an era of digital disruption, metals leaders must take technology implications into account.
While the M&A process might seem daunting with new aspects to consider, metals executives can move forward more confidently with their investments by asking the right questions. Following are four must-ask technology questions that can lower the risk of a failed deal.