RESEARCH REPORT
Unlocking alpha in deals
5-MINUTE READ
March 20, 2025
In brief
- New technologies are helping deal teams identify and assess targets faster, refine bids with greater precision and craft more effective value creation plans.
- Still, investments in these technologies lag their perceived potential—a gap especially stark in post-deal execution.
- Dealmakers who embed next-gen technologies, equip their teams to use them effectively and partner strategically are pulling ahead.
The power of next-gen technologies
The competition for high-quality assets is fierce, forcing mergers and acquisitions (M&A) and private equity (PE) dealmakers to move fast while still making precise, high-conviction bets.
New technologies, particularly AI and advanced analytics, are revolutionizing dealmaking. These tools are expanding access to data, accelerating execution and creating new pathways to value.
Despite recognizing their value, most dealmakers adopt these new technologies in an ad hoc manner, vastly underutilizing their potential—a gap especially stark in post-deal execution. The challenge lies in converting fragmented data and disconnected tools into a cohesive intelligence engine.
Despite the benefits, new tech is often adopted ad hoc
94%
of deal professionals say the pre-deal process needs improvement
82%
say AI and advanced analytics are already accelerating their pre-deal insights
7%
are applying generative AI in at least half of their deal stages
Dealmakers who embed generative AI broadly across the deal lifecycle are 4x more likely to report that they consistently capture post-acquisition value. This illustrates that returns from generative AI tend to compound when adopted strategically.
Why deal teams struggle to unlock value at speed
Deal teams today face a problem of plenty. They have never had more data, technology and potential partners at their disposal. Yet, instead of driving conviction, this abundance—combined with a lack of maturity in available tools, uncertainty about clear winners and, at times, a deficit of trust—is leading to indecision.
Large volumes of scattered data and technology choices are contributing to deal complexity.
Percentage of dealmakers citing each factor among their top three challenges (non-regulatory)
Only 24% of firms have embedded a digital strategy across the full deal lifecycle. The focus remains heavily skewed toward pre-deal activities.
Three steps to unlock alpha
The key question: How can dealmakers shift from tactical tech adoption to a strategic approach across the deal lifecycle—one that cuts through complexity and drives superior value?
Advantaged dealmakers do three things well. They:
01
Embed tech capabilities across the deal lifecycle
Despite recognizing technology’s value, only 24% of firms have embedded a digital strategy across the full deal lifecycle—let alone deployed generative AI. Focus remains heavily skewed toward pre-deal activities. This imbalance means dealmakers often miss critical opportunities to realize synergies faster.
A well-defined digital strategy is crucial for maximizing return on investment. High-TSR companies are 1.3 times more likely to embed a digital strategy across the full deal lifecycle. Similarly, dealmakers who report they consistently capture post-acquisition value are 3.2x more likely than their peers to integrate technology effectively into deal processes.
Call to action:
- Develop a digital strategy that embeds AI into core deal activities.
- Standardize and centralize deal data to unlock smarter insights.
- Pilot new technologies in live deal processes before scaling.
“We have looked at generative AI across all of our portfolio companies, selecting solutions that provide clear, incremental improvements—like enabling people to answer queries much faster or simplifying parts of the value chain.”
— Managing Director, European PE firm
02
Empower deal teams with AI-driven intelligence
Technology alone doesn’t create an advantage—how deal teams use it does. Advantaged dealmakers turn technology into a continuous learning engine, ensuring teams are trained and equipped to apply new tools in real-world scenarios. Almost all dealmakers (84%) see scope for improvement when it comes to applying insights from past transactions.
Call to action:
- Make new technologies hands-on dealmaking enablers, not just back-office tools
- Create internal tech champions to drive adoption and remove barriers.
- Build structured feedback loops to refine decision-making over time.
“We have a transparent process for taking stock after acquisitions and exits to ensure that the same mistakes are not repeated.”
— Managing Director, PE fund
03
Partner and experiment to stay ahead
The landscape of next-gen technologies is rapidly evolving, and firms that wait for the perfect solution risk falling behind. Advantaged acquirers leverage the innovation partners can bring and engage in structured experimentation to close capability gaps. Only 31% of firms rate their current approach as highly effective, indicating a significant need for improvement.
Call to action:
- Adopt a clear buy/build/partner strategy based on cost, control, and speed.
- Test solutions in controlled pilots before full-scale implementation.
- Leverage external partnerships to expand capabilities and accelerate AI innovation.
“If it's a business application, integration is key and it makes sense to deploy capital. For M&A processes, we will buy via external vendors and use the best one for the job.”
— Head of Corporate Development, European multinational
Alpha isn’t found—it’s engineered
Advantaged acquirers are going beyond processing data to extract the right signals, make sharper bets, justify bolder moves and execute with precision.
The question is not just whether you will adapt but whether you will lead. By embedding a clear digital strategy, equipping teams with the right tools and training and partnering strategically, you can unlock alpha and drive superior value in your transactions.
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