In the world of M&A, a winning strategy ultimately boils down to one thing: data.
From sourcing to diligence to integration planning, quality data changes the game.
To optimize their strategy and win more deals, investors must treat data as a strategic asset.
Below, we provide 10 crucial tips for capitalizing on M&A data, from evaluating investments to pricing deals to integration.
Evaluating Data as a Strategic Asset in Investments
Here are four points to consider if you’re assessing data-rich companies for acquisitions.
1. Focus on where the data fits into your goals.
Volume isn’t the key metric here. Consider how your target’s data connects to your firm’s existing capabilities and business objectives, including integration, synergies, and insight generation.
2. Scrutinize the data quality.
Ask questions about accuracy, completeness, and how the data was generated (e.g., synthetically or organically) to ensure reliability.
3. R&D data can be a real accelerator.
Data that sheds light on customer behavior, market trends, or product feedback can meaningfully reduce time to market and increase R&D efficiency post-acquisition.
4. Evaluate data usage.
Beyond monetization, consider how data shapes your target’s product strategy — whether through usage analytics, feature testing, or customer segmentation insights that drive roadmaps.
Integration and Legal Compliance
With great opportunity comes great responsibility — and risk. Compliance and security are absolutely crucial for capitalizing on the opportunities that data provides.
5. Strong data infrastructure supports scale.
It’s not just about having data — having appropriate technology and systems (cloud, governance, AI/ML tools) to support integration of data in investments or acquisitions is critical.
6. Not all data is created equal.
Data tied to sensitive areas (e.g., location, health, minors) can carry additional risk and affect both valuation and how the data can be used going forward.
7. Compliance isn’t optional.
From AI model training to customer data use, the regulatory environment is shifting. Understanding where a company’s practices stand is crucial to managing future risks. Ensuring contractual rights to the use of data, especially consumer personal information, is critical when considering data utility.
Valuing Data in an Investment or Transaction
Data should also factor into your calculations for a prospective investment or acquisition. Here are some key considerations.
8. Proprietary data adds a layer of value.
Unique data sets (whether behavioral, algorithmic, or research-based) are tough to replicate and can be decisive in acquisition discussions. Look for unexpected uses for certain datasets that could set you apart.
9. Integration planning impacts ROI.
Acquired data has real value, but only if it can be integrated smoothly. Think ahead about compatibility, systems, and the cost of getting it right.
10. Value correlates to business impact.
Customer, product, and operational data that links directly to revenue generation, product development, or efficiency gains is getting closer attention in valuations.
How Grata Can Help
When it comes to reliable, actionable data in the private markets, Grata has you covered.
Our Private Market Data Buyer’s Guide covers everything you need to know about finding and using quality private market data to win in your industry.
Want to see firsthand how our investment-grade data can work for you? Schedule a demo today.
