Digital capability gaps have become one of the most significant sources of integration cost and complexity in M&A transactions — and one of the most frequently underestimated in pre-deal diligence.
The disparity between digital leaders and laggards in most industries has widened dramatically. Acquirers who fail to assess this gap rigorously before closing regularly discover that the cost and complexity of digital integration significantly exceeds the deal model assumption.
The same digital assessment that surfaces integration risk also surfaces digital value creation opportunity. Companies that have underinvested in digital capability typically present significant upside through targeted modernization programs.