Goldman Sachs develops app to identify M&A targets

Goldman Sachs has developed an app called Gemini to help clients find matches for mergers and acquisition.

The app measures the performance of companies’ specific units against those of their competitors by using a formula that compares revenue growth, profit margin and other metrics as a percentage of sales.

The bank hopes clients will use it to pinpoint underperforming units, which activist investors may target, or segments that score poorly on environmental, social and governance issues. David Dubner, the company’s global head of M&A structuring, told Bloomberg he also expects the app to identify sale or spin-off opportunities and possible takeover targets.

The coronavirus pandemic has severely curbed business travel — particularly for M&A. So a tool to help executives suss out potential partnerships could be helpful. 

“Bankers are road warriors, but I think they’re learning quickly that they can get a lot more done [remotely],” Derek Koecher, Verizon’s vice president of strategy and development, said in June, according to Bloomberg. The telecom giant acquired BlueJeans, a videoconferencing software company, in April for $400 million. Negotiations began before COVID but ramped up as the virus did the same, he said.

Source: Banking Dive

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