M&A Deals Are Getting Smarter – Here’s How Technology is Driving It

Discussion with Eivind Roald

The landscape of mergers and acquisitions (M&A) has undergone a profound transformation over the past two decades, shaped by the rapid evolution of technology. Eivind Roald, an executive with extensive experience across consulting, private equity, and corporate leadership, has been at the forefront of this change. With a career spanning Accenture, Scandinavian Airlines, HP and the co-founder of QNTM Group, a European software acquisition company, Roald offers a unique perspective on how technology is reshaping M&A strategies. In this article, we explore how technology has transitioned from a growth driver to a strategic differentiator, the rise of composable software solutions, and the practical integration of AI in M&A decisions.

Technology as a Strategic Differentiator in M&A

Traditionally, M&A decisions were driven by financial synergies and market consolidation. However, in today's fast-paced digital world, technology has become the core enabler of business scalability and integration success. Roald emphasizes that while technology itself has not fundamentally changed the mechanics of M&A, the centrality of tech-driven business models has elevated its importance. "Technology is no longer just a tool for efficiency; it has become the heart of nearly every industry", Roald explains. "Whether in biotech, retail, or heavy industry, companies are leveraging digital tools to enhance operations and customer interactions".

A clear example of this shift is the evolution of marketing technology (MarTech). Historically, marketing teams were not particularly tech-savvy. Today, however, the role of a chief marketing officer has expanded to include deep technological expertise, as businesses strive to engage customers digitally and automate processes. This transformation has created a surge in MarTech investments, fueling a dynamic and competitive M&A environment.

Beyond marketing, the explosion of AI-driven solutions has accelerated the demand for technology-based acquisitions. Roald highlights that in 2020, an estimated 8,000 MarTech companies existed in Europe alone. By 2024, that number had risen to over 14,000, underscoring the increasing reliance on specialized technology to drive business outcomes. This vast and fragmented landscape presents significant opportunities for consolidation, making technology-focused M&A strategies more critical than ever.

The Rise of Composable Software and Its Impact on M&A

One of the most notable shifts in enterprise software strategy is the move away from monolithic, all-in-one platforms toward a composable approach. This shift has had profound implications for M&A, as companies seek out modular, best-of-breed solutions instead of committing to a single vendor ecosystem."In the past, large enterprises relied on extensive, end-to-end solutions from vendors like Salesforce and Adobe, often implemented with the support of consulting giants", Roald notes. 

"Today, organizations are adopting a new approach: Buy different functional software that can be integrated but not in one platform. And this is like a Lego system. You take different kinds of components and put it together because it makes more sense and it's more efficient". This composable strategy allows them to integrate specialized software components tailored to their specific needs.

This trend is reshaping M&A criteria, as acquiring firms are no longer looking for comprehensive platforms but instead focusing on companies that offer niche, high-performing solutions that can seamlessly integrate into broader technology stacks. The declining market presence of traditional enterprise software providers further validates this shift. Roald cites Salesforce’s example in Norway, where the company reduced its workforce significantly within a few years, signaling a declining demand for all-encompassing enterprise solutions.

Cost efficiency is another driving factor. Implementing monolithic software systems requires extensive financial and human resources. The complex nature of these platforms demands highly skilled personnel, which can be difficult to recruit. In contrast, composable software solutions offer greater flexibility, lower implementation costs, and easier scalability, making them a more attractive investment for M&A stakeholders.

Understanding the Biggest Challenge: Founders and Leadership Transitions

One of the most significant challenges in post-merger integration is transitioning leadership within acquired tech firms, particularly those founded by individuals who have led their companies from the ground up. Often, these founders are deeply involved in all executive roles, and while they are enthusiastic about selling their companies, they may struggle with the reality that scaling and professionalizing the business requires a different skill set.

As Raold explains, "Maybe the founder is not the right person to take this to the next stage. That is a challenge for the founder to understand, number one, and to accept, number two". The key is not to push them out but to transition them into roles where they continue to contribute—such as head of tech or commercial strategy—while bringing in experienced executives to drive the company forward. This delicate balance is crucial for ensuring a smooth transition while respecting the founders' contributions.

Building Loyalty and Retaining Key Talent

Beyond leadership transitions, another major challenge is retaining top technical talent, particularly in niche sectors like martech and adtech, where employees are often highly loyal to their founders. This loyalty can make it difficult to maintain stability and prevent key team members from leaving during a merger.

To address this, Roald outlines three critical steps:

1. Sell the Vision – Employees need to see the bigger picture. They should understand how the merger will help their technology reach a broader market and how they can compete on a larger scale.
2. Investment in Growth – Communicating clear plans for reinvestment in R&D, sales, or marketing helps reassure employees that the new ownership is committed to their success.
3. Equity and Incentives – Implementing a management and employee investment program ensures that key personnel have a stake in the company’s future, increasing motivation and long-term commitment.

By addressing these key concerns early in the integration process, companies can not only retain top talent but also build a stronger and more motivated team for the future.

AI’s Role in M&A: Hype vs. Reality

While artificial intelligence (AI) is often touted as the future of business, its actual impact on M&A remains nuanced. Many companies claim to leverage AI, but few have successfully integrated it into their operations to drive tangible business outcomes.

"Most enterprises I engage with talk about AI, but when pressed for details, their adoption is often limited to employees using ChatGPT or Co-Pilot", Roald points out. 

"The real challenge is not just adopting AI tools but embedding them strategically to optimize costs and drive efficiency". Roald provides a compelling example of AI’s potential in M&A. He has worked with clients to develop AI-driven solutions such as chatbots and AI-generated content to automate translation and video production. Instead of hiring external translators or video producers, companies can now own created AI clones of executives and internal experts, who can, who can communicate seamlessly in multiple languages—resulting in significant cost savings and streamlined operations.

However, despite these advancements, widespread AI integration remains a work in progress. While some organizations have successfully deployed AI to reduce operational costs e.g within marketing by 30-40%, many are still in the early stages of experimentation. The challenge for M&A decision-makers lies in identifying acquisition targets that have truly embedded AI into their business models rather than those that merely adopt AI for surface-level efficiencies.

Conclusion: Navigating the Future of Tech-Driven M&A

As technology continues to evolve, so too will the criteria for successful M&A. Companies that embrace composable software, leverage AI effectively, and recognize the strategic value of digital tools will be best positioned for long-term success.

Roald outlines three key takeaways for executives navigating this changing landscape:

1. Composable software is the future: Businesses should prioritize modular, best-in-class solutions over monolithic platforms to enhance flexibility and and lower implementation and operational cost.
2. AI is an enabler, not a silver bullet: Companies must move beyond surface-level AI adoption and focus on integrating AI strategically to drive real business value.
3. Tech-driven M&A requires a shift in mindset: Successful deal-making is no longer just about financial gains but about aquiring the rigth technological technological capabilities that foster sustainable growth.

"The M&A landscape is shifting rapidly", Roald concludes. "Executives must stay ahead of these changes by understanding how technology can serve as a true differentiator in deal-making. The winners in this space will be those who invest in the right tech-driven strategies—not just for growth, but for sustainable, scalable transformation".

In an era where technology underpins nearly every industry, C-level executives must rethink their approach to M&A, ensuring that their strategies align with the digital realities of the modern business world. The ability to navigate this evolving landscape will determine which companies thrive and which ones are left behind.