How to prevail when technology fails - Flipbook - Page 24
24 | How to prevail when technology fails
52%
of large businesses* plan to
enter into a JV with a technology
company in the next two years.
Only 35% did so in the past
two years.
*Generating annual revenues of
more than $1bn
Tech M&A and partnerships
grow in popularity
For the 61% of businesses that say technology is
a key component of their growth strategy, a key
question is how to obtain it. For many, M&A, JVs
and outsourcing are going to provide the answer.
According to the survey data, 47% plan to form a JV
with a technology company in the next two years,
up from 39% who did so in the past two years. In
parallel, half intend to outsource a key business
function to a technology company in the next two
years, up from the 44% who did so in the past
two years.
Large businesses (those generating more than $1bn
in annual revenue) and those based in the U.S. are
particularly keen to forge technology partnerships.
These deals can be instrumental in helping
businesses to get ahead – and stay ahead – of
the competition. Traditional businesses outside
the technology sector may find it quicker and
easier to incorporate tech into their products
or internal business processes by forming a JV
with, or acquiring, a company that has either
already developed it or is better equipped to do so.
Businesses may also be able to generate significant
efficiencies by outsourcing key business processes to
a technology company.
To mitigate risks, legal teams must work in
close collaboration with the wider businesses
across the deal lifecycle – from pre-completion
evaluation and documentation to post-completion
operations management.