INTERNAL DIGITAL CAPABILITIES AS THE SWISS POCKETKNIFE If the traditional M&A toolbox is no longer sufficient for digital deals, it must be expanded and changed. But, applying digital to the ins and outs of a deal is only part of the equation for success. Companies must become more digital themselves to integrate newcomers as rapidly and effectively as possible—doing so provides them all the benefits of digital in a Swiss pocketknife effect. Applying digital to pre-deal processes helps firms competitively, but gains erode quickly if they cannot reap the benefits of the merger or acquisition in short order. Digital is the only tool at their disposal that can deliver within the accelerated timeframe today’s rapid business pace demands. But, many companies fall short in this area currently. One Accenture Strategy study shows only seven percent of respondents are currently able to acquire a progressive target from contact to closing 10 11 within 120 days. Seventy-one percent take between four and nine months. Survey participants told us technology integration (71 percent) and the maintenance of the target’s innovative culture (62 percent) determine the success of progressive company acquisitions. 12 | M&A: FROM ART TO SCIENCE