A traditional master data management (MDM) program typically focuses on firmographic data and other data points that help in the identification of a business’ counterparties (e.g., customers, suppliers, partners). But firmographic and identification data is rarely enough to perform a complete risk assessment and monitor changes in these important relationships. Robust information on M&A deals, including deal value, transaction details, parties involved, and the rationale behind the transactions, can enrich your master data beyond that typical starting point, and help you to maintain a more complete, trusted ‘golden record’.
M&A data is important for obtaining a holistic view of an entity, it helps with:
- Corporate Strategy: M&A data provides insights into an entity's growth strategy and helps in understanding its past and potential future transactions. This information can be used to assess and evaluate an entity's strategic decisions and evaluate its ability to expand into new markets or diversify its operations.
- Sales and Marketing: It also proves useful to account management teams to help them better understand their customers by staying up to date on information about the customer’s M&A activity. This information helps teams determine more cross-sell and upsell opportunities, further amplifying monetary growth.
- Financial Performance: M&A activity can have a significant impact on an entity's ability to meet or exceed its financial obligation. Analyzing M&A data allows stakeholders to assess the financial implications of past transactions, such as the impact on revenue, profitability, and cash flow. It also helps in evaluating the entity's ability to generate synergies and create value through acquisitions.
- Industry Research and Analysis: M&A data provides valuable information about the competitive landscape and industry trends. By analyzing M&A transactions within a specific industry, one can identify patterns, such as consolidation trends, emerging players, or potential disruptors. This information is crucial for understanding the competitive dynamics and assessing the entity's position within the industry.
- Risk Profile: M&A transactions involve various risks, including integration challenges, cultural differences, regulatory hurdles, and financial implications. By analyzing M&A data, stakeholders can assess the entity's risk appetite, track its risk management practices, and evaluate the success or failure of past transactions. This information is important for understanding the entity's risk profile and its ability to execute successful M&A deals.
Having a complete view of an entity enriched with M&A data, helps with streamlining supplier/ vendor decisioning, and more efficient compliance and regulatory screening, ultimately minimizing costs and risks to the organization while also maximizing business agility. Global entity data can help ensure the success of the MDM program – both at the start and also as part of its ongoing maintenance.
We can help you leverage our award-winning Orbis database to validate data, decode risk and unlock opportunities, to learn more visit moodysanalytics.com/master-data