The document discusses how mergers and acquisitions (M&A) valued at over $4.7 trillion took place in 2015. It argues that cloud computing can help drive further growth and competitiveness in M&A by enabling companies to capture synergies more quickly. Specifically, cloud infrastructure allows for faster IT delivery and cost reductions of 30% and nearly 30% on average respectively for M&A. Engaging the CIO early in the M&A process can help identify new sources of value from cloud and accelerate the benefits for deals.

1. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
Driving growth and
competitiveness:
Can the power of cloud lift M&A
value into the stratosphere?

2. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
+M&A
A record $4.7 trillion in M&A
deal activity globally was
seen in 2015 with a triple-
digit percentage increase
year over year in the number
of deals $10+ billion.*
Cloud
Transformative as-a-service
capabilities are enabling
acquirers to capture and
lock-in synergies at
unprecedented depth
and speed.
*Source: http://dmi.thomsonreuters.com/Content/Files/4Q2015_Global_MandA_Financial_Advisory_Review.pdf
Driving growth & competitiveness in M&A
Two forces converge

3. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
Cloud serves as a
catalyst to value
acceleration and
transformation
Three key factors must be addressed to leverage the
power of cloud in M&A:
Identify new sources of M&A value enabled by
the cloud
Engage the CIO—as a co-pilot in the cockpit—at
the pre-deal stage
Accelerate the enterprise’s cloud strategy and
migration to the cloud
Sky high value in M&A
Accelerating deal value

4. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
Cloud accelerates the IT
delivery in M&A by 30
percent on average and
reduces the IT costs by nearly
the same amount.*
Cloud infrastructure as-a-service allows for
transformation as organizations:
• Leverage XaaS delivery enabled by cloud to
perform business functions instead of
undergoing a complex integration
• Reduce lead time to stand up core IT services
and shift financial delivery from upfront
CAPEX to ongoing OPEX
• Take advantage of potential parallelization of
projects and higher throughput *Source: 2016 Accenture Strategy M&A Analysis
Speed to value
Propelling a transformative leap forward in how IT enables new
M&A value and the business post-deal

5. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
Relegating CIOs to the M&A sidelines results in:
• Lost opportunities to weigh in on preliminary valuations and
propose alternate transaction structures
• Inability for CIOs to react to opportunities and threats
• Missed potential for accelerated M&A activity and greater
agility in enabling the business
CIO in the cockpit
Engaging CIOs upfront at the pre-deal state to determine how
cloud can add new value to the deal

6. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
Comments and analysis are based on Accenture Strategy internal research
and an illustrative deal value of $10B. Results are dependent upon the
targeted level of integration and use of cloud. Benefits do not account for the
time value of money.
Cumulative BenefitsIllustrative Deal Value ($M) $10,000
Integration Cost Savings
One time integration costs
IT integration costs ignoring Cloud
Estimated cost savings from Cloud
(High, 45%)
Estimated cost savings from Cloud
(Low, 10%)
($M)
500
150
68
15
Synergy Uplift
Targeted annual synergies starting
in year 3
Targeted synergies from IT
ignoring Cloud
Estimated add’l synergies from
Cloud (High, 35%)
Estimated add’l synergies from
Cloud (Low, 5%)
($M)
150
45
16
2
CIO in the cockpit
Delivering $100M+ in benefit from cloud platforms and as-a-
service models

7. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
Cloud can help overcome the typical disruption of an
at-scale acquisition:
• A transition to the cloud during a merger integration
program can be a faster and less costly option
• Cloud is a must have when a merged new company’s
ongoing M&A agenda requires a scalable platform to
integrate into
• IT shifts from a commodity role to a multi-speed
business partner
Accelerated transition to the cloud
Shortening time to deal close with cloud to make every
second count
Nearly 75%
of industry is
estimated to be
behind in starting
their migration to
the cloud.*
*Source: 2016 Accenture
Strategy M&A Analysis

8. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
• Develop the business case for the new
opportunities, identifying the additional
synergies that are generated from the cloud.
• Establish strong governance that’s calibrated
and equipped to support a cloud-enabled
M&A plan.
• Revisit the M&A strategy with a view on how
leading with cloud can play a part in creating
new opportunities and adding value to deals.
• Plan the integration or divestiture addressing
any gaps or risks to achieve the M&A
objectives and identified synergies.
Involving the CIO as part
of the M&A strategy
team will enable
organizations to:
Cloud and the M&A horizon
Turning IT into an enabler of deals and value realization
+

9. Learn more about how the cloud can
lift M&A value in your organization with our full report:
Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
technology.strategy@accenture.com
Driving growth and competitiveness:
Can the power of cloud lift M&A value into
the stratosphere?

10. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
@AccentureStrat
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