The mergers and acquisitions (M&A) industry has always been a driving force in shaping the business world. Over the past decade, however, it has undergone rapid transformation. Technology, changing consumer behaviors, and a globalized economy have redefined how deals are structured and executed.
Few understand this evolution better than Nitin Khanna. As the founder of MergerTech, a boutique advisory firm specializing in tech-focused M&A, Khanna has witnessed firsthand how the industry has shifted. His experiences offer valuable insights into what it takes to navigate today’s complex M&A environment.
The Rise of Tech-Driven M&A
Technology has fundamentally reshaped M&A. A decade ago, deals were often about acquiring physical assets or expanding market share. Now, they’re about innovation. Companies are seeking intellectual property, data, and teams that can drive growth in a digital-first economy.
“Today, the value of a company isn’t just in its revenue or assets—it’s in its ideas,” says Khanna. “Startups with strong intellectual property and innovative solutions are leading the charge.”
This trend is reflected in the numbers. In 2022, global M&A deal volume reached $3.6 trillion, according to Refinitiv. A significant portion of this activity came from the tech sector, which accounted for 20% of all deals that year. Cloud computing, artificial intelligence, and fintech have been particularly hot areas.
Speed and Precision Matter
One of the biggest changes in M&A is the speed at which deals are now conducted. Technology has streamlined due diligence and deal analysis, enabling buyers and sellers to move faster.
“Virtual data rooms, AI-driven insights, and predictive analytics have changed the game,” Khanna explains. “But with speed comes the need for precision. You can’t cut corners in understanding a company’s true value.”
This demand for both speed and accuracy has placed a premium on preparation. Sellers need to have their financials, operations, and growth strategies in order before entering the market. Buyers, meanwhile, rely heavily on technology to identify the right opportunities.
Storytelling as a Deal Driver
In the past, deals were often driven by numbers alone. Today, storytelling has become a critical component of M&A success.
“A compelling narrative can set a company apart,” says Khanna. “It’s not just about what you’re selling—it’s about why it matters.”
Buyers want to know the story behind the business: its mission, its culture, and its potential impact. This is especially true in sectors like tech and wellness, where purpose-driven companies are highly sought after. Entrepreneurs who can clearly articulate their vision often find themselves in a stronger negotiating position.
Challenges in Today’s M&A Market
Despite its opportunities, the M&A landscape isn’t without challenges. Regulatory scrutiny has increased, particularly in sectors like tech and cannabis. Cross-border deals face additional hurdles due to varying laws and geopolitical tensions.
“Regulations can feel like a moving target,” says Khanna. “That’s why adaptability is so important. You have to anticipate challenges and be ready to pivot.”
Limited access to venture capital in some markets can also make it difficult for smaller companies to position themselves for acquisition. However, Khanna emphasizes that creativity and resourcefulness can overcome these barriers.
Building Trust in High-Stakes Deals
At its core, M&A is about relationships. Deals succeed or fail based on trust between buyers and sellers.
“Numbers are important, but trust is everything,” Khanna notes. “Both sides need to feel confident that they’re getting a fair deal and that the other party will uphold their commitments.”
This human element is often underestimated in a world increasingly driven by data and technology. Khanna believes that strong communication, transparency, and mutual respect are key to building trust in high-stakes transactions.
The Future of M&A
Looking ahead, the M&A industry is poised for further evolution. Emerging technologies like blockchain could revolutionize how deals are executed, making transactions more secure and efficient. Sustainability is also becoming a key focus, with buyers prioritizing companies that align with environmental and social goals.
“Businesses that integrate sustainability into their operations will have a competitive edge,” says Khanna. “Investors and buyers are looking for long-term value, and that includes social responsibility.”
Market trends also point to increased activity in sectors like renewable energy, healthcare, and cybersecurity. As industries adapt to global challenges, M&A will continue to play a critical role in driving innovation and growth.
Final Thoughts
For entrepreneurs, navigating the M&A landscape requires preparation, adaptability, and vision. The ability to tell a compelling story, build trust, and stay ahead of industry trends can make all the difference.
“M&A is about more than just closing deals,” Khanna reflects. “It’s about creating opportunities for growth, innovation, and impact.”
As the industry evolves, Khanna’s insights serve as a reminder that success lies in balancing speed with strategy, numbers with narratives, and ambition with authenticity. In a world of constant change, these principles remain timeless.
