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Navigating the Data Maze: Simplifying Divestitures and M&A Data Challenges with Unified Data Management
Navigating the Data Maze: Simplifying Divestitures and M&A Data Challenges with Unified Data Management

May 9, 2023

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Navigating the Data Maze: Simplifying Divestitures and M&A Data Challenges with Unified Data Management

The year 2023 is poised to be a year of divestitures and mergers & acquisitions. However, this was not the case just a few months back. The Divestitures and M&A market witnessed a significant drop in 2022 due to concerns about an impending recession and rising interest rates, discouraging investors from participating in deals. Reports by Refinitiv and the Wall Street Journal revealed that the total value of deals plummeted by 37% compared to 2021’s record high, resulting in a total value of $3.61 trillion. This drop marked the most significant decline since 2001 when global deal values fell by 50% to $1.68 trillion.

However, as we stepped into 2023, businesses began adapting to this new reality by restructuring their deals to leverage market volatility and minimize costs as much as possible. It’s a positive sign that companies are proactively taking measures to navigate these challenging times and emerge stronger.

The Challenges of Data During Divestitures and M&As

 

Data is an invaluable asset that must be handled with care, especially during divestitures and M&As. However, identifying, classifying, and optimizing vast amounts of sensitive or unstructured data can be quite challenging.

One of the main hurdles is the fact that data is often commingled and spread out across multiple data centers and IT environments, making it hard to locate. Additionally, it can be difficult to identify data owners and their respective locations.

Another issue arises when determining which data should be migrated to which entity, as organizations may be unsure which data is valuable and relevant. Moreover, the possibility of data loss or damage during divestitures and mergers & acquisitions is incredibly high, leading to legal and regulatory risks.

To make matters worse, archiving or deleting obsolete, incorrect, unnecessary, or duplicate data is a laborious and error-prone task, leading to additional headaches for organizations.

To address these complexities, enterprises often opt for multiple legacy technologies and expand their infrastructure, further complicating matters. It becomes increasingly challenging to identify the data that exists, classify it appropriately, optimize its storage, and determine the best way to migrate it from on-prem data centers to a cloud (or hybrid) environment.

On top of this, organizations often have data silos containing different types, volumes, and formats of data. In fact, a recent study revealed that 90% of businesses struggle with data silos and fragmentation. This adds to the complexity of managing data during Divestitures and M&As and can increase costs.

In order to steer clear of these complications, it is vital to tackle these challenges early on and ensure that the correct amount and type of business-critical data is transferred to each entity. This necessitates a thorough understanding of the data ecosystem and a meticulously planned approach to managing data throughout the Divestiture and M&A process. By doing so, organizations can guarantee a seamless transition and preserve the integrity and security of their data.

This is precisely where a unified data management (UDM) can come to the rescue.

Click here to read more about the 4 Strategies to Overcome data-related hurdles and seize opportunities with Unified Data Management.


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