Given that every M&A scenario is different, the use and application of business intelligence varies remarkably between individual deals. Yet, in search of what nebulously can be termed best practice in this field, it is possible to isolate and identify an ideal common approach that can help managers ensure success off the back of M&A transactions.

While much of the book has focused around corporate entities and other institutions as remote and depersonalized participants in a highly complex commercial environment, it is important to remember, however obvious, that an organization is only ever as good as the employees who drive it forward. Thus, while it is corporate level players that are the actors per se on the M&A stage it is often the staff members who provide the competitive advantage, through a combination of years of relevant experience, tacit “know-how,” and a detailed understanding of a particular situation. As much as any other factor, hand picking the best internal and external team with the greatest amount of insight relevant to a particular M&A deal often pays the highest dividends for a company.

Yet, over and above this, there are a number of recommendations that can be made that will certainly aid the successful conclusion of an M&A deal. In the first instance, companies need to position information and intelligence at the very center of their organizational structure, enabling participants in an M&A scenario to tap into a wealth of tacit and codified knowledge with which to drive a deal forward. The entire team – both internal and external – must be told of the expectation that they will share any information they have gathered, whether they believe it relevant or not. Cited in the US Congress as dealing “… with all things which should be known in advance of initiating a course of action …,” intelligence enables companies to safeguard their welfare when heading into the maelstrom of an M&A deal environment by providing the most amount of foreknowledge possible. Indeed, the expression “to be forewarned is to be forearmed” is most apt in this context.

In a world that is increasingly defined by “prescription” and heavily mandated regulation (especially in the post-Lehman environment, which resulted in the bailing out of companies ranging from General Motors to the Royal Bank of Scotland), the use of free thought and ingenuity in the gathering of information may often prove to be the defining competitive edge and recipe for success. With so much information in the public domain, companies require simple yet innovative methods to enable them to separate the wheat from the chaff, uncovering uniquely valuable information sources that provide the most insight while offering them the edge in transactions and negotiations.

It would also be difficult to overstate the significance and value that team membership can add to an activity such as M&A. Indeed, this ties back into the comment earlier that all of the team members must feel that their role in intelligence gathering is part of their core job. Knowing that they are all part of a larger network, where intelligence gathering is considered a core skill, will be key in enabling organizations to gather or uncover the necessary business intelligence for an M&A transaction.

Deals should hinge on commercial logic and be developed over time through the proactive use of business intelligence. Courted and serenaded by advisors who pitch opportunistic deals on an ongoing basis to executives, companies need to ensure that the M&A transactions they initiate are deeply rooted in their long-term strategy. The deals must also be constantly and dispassionately evaluated and re-evaluated to ensure that they are still “on track” to deliver enhanced shareholder returns and that they consider the interests of all stakeholders.

Business intelligence is not about being more conservative in the context of M&A; instead, it is about making sure that the team has taken every advantage it can and has as many bargaining chips in its pocket as possible. By developing an informed comprehensive knowledge of the dynamics that surround the deal, the team can more constructively and effectively manage these dynamics on a continual basis. In short, business intelligence enables a better approach to a merger or acquisition in such a way as to bring out the best long-term value from the deal, and not simply to clinch it with little regard for how that value can most easily be realized.

In conclusion, only by employing sufficient and first-rate business intelligence – delivered by a first-rate intelligence function – will companies be able to gain the distinct competitive advantage that will enable them to achieve commercial success from mergers and acquisitions. In the 21st century, M&A is a high risk activity for corporations. Nonetheless, most companies, if not all, have no choice but to step into the M&A ring to guarantee their continued financial and commercial viability, in a world where scale and scope arguably provide some sort of buffer against the vicissitudes of an ever-changing and often turbulent business environment. In as much as business intelligence provides a mechanism for risk management within an M&A framework, so it also helps companies beat the odds by turning deals into value-enhancing transactions with greater opportunities for all stakeholders.