The next normal and rising M&A and partnerships, you may notice from the headlines across the globe, is rising, since COVID-19 pandemic and continuing to the new normal, then next normal. You will notice that more and more IPOs across the globe are asking for the extraditionary price as well.
Beside the extraordinary few industries and sectors, the majority of the global industries is strongly impacted by this prolonged COVID-19 pandemic, where the new variant keeps evolving, and the world population still takes a long time to get vaccinated. Some countries are now adopting coexist strategy, instead of attempting to purely based on the lockdowns or partial lockdowns, after they learn from the lessons for their previous and how others countries fight against COVID-19 pandemic.
Without doubt, the world is moving toward the digital economy, related technologies adoption is heading toward digital transformation (DT), cloud migration, process automation, and they have accelerated since COVID-19 pandemic, to new normal, and now next normal. For those who are not capable of adapting to the changing market reality, and able to come up with a new business model to make their business relevant to the current and future changing industrial and consumer buyer behavior, for sure, will be very challenging to operate.
Among all the M&A deals, some is create synergy for the both business, whether it expand the business, cost cutting due to share resources, or spin off the business and attempt to IPO them to generate new business values, in the very fundamentals, we are need to see whether a sound strategy and business relevance to the current and future needs. If the whole purpose is to save the both falling business, despite it seeming to create value due to M&A (initially), combine the both business historical customer based, it does not tell and no one can tell the future how the existing buyer market will act on it. So it is wise to make sound business sense on how to react to M&A. As history keeps repeating the lesson, a new generation of better products continue to invent to fulfill new market challenges and needs, where old generations of products that can not cope with the changing requirements, no matter how big you are or how many business resources you possess, will be falling.
From all the historical cases, it teaches us one thing, nothing forever. Even a strongest brand and companies will fall, or decline in the market value, once it does not seize or innovate their business model to be relevant to the market at their time. This is why, you notice that pre- and post COVID-19 pandemic era, digital transformation (DT) remain number 1 priority for all the leadings enterprise and government agencies, because everyone is know the future is belong to those who can create compelling unique value that hard to be copy by the competition, and you need to do it fast.
E-SPIN Group in the enterprise ICT solution supply, consulting, project management, training and maintenance for enterprise and government customers across the region. Feel free to engage E-SPIN for the digital transformation initiative consultancy, project inquiry whether in turnkey to point solutions based.