Make IT a Successful Partner in M&A Integration
- Many organizations forget the essential role IT plays during M&A integration. IT is often unaware of a merger or acquisition until the deal is announced, making it very difficult to adequately interpret business goals and appropriately assess the target organization.
- IT-related integration activities are amongst the largest cost items in an M&A, yet these costs are often overlooked or underestimated during due diligence.
- IT is expected to use the M&A team’s IT due diligence report and estimated IT integration budget, which may not have been generated appropriately.
- IT involvement in integration is critical to providing a better view of risks, improving the ease of integration, and optimizing synergies.
- Anticipate that you are going to be under pressure. Fulfill short-term, tactical operational imperatives while simultaneously conducting discovery and designing the technology end-state.
- To migrate risks and guide discovery, select a high-level IT integration posture that aligns with business objectives.
Impact and Result
- Once a deal has been announced, use this blueprint to set out immediately to understand business M&A goals and expected synergies.
- Assemble an IT Integration Program to conduct discovery and begin designing the technology end-state, while simultaneously identifying and delivering operational imperatives and quick-wins as soon as possible.
- Following discovery, use this blueprint to build initiatives and put together an IT integration budget. The IT Integration Program has an obligation to explain the IT cost implications of the M&A to the business.
- Once you have a clear understanding of the cost of your IT integration, use this blueprint to build a long-term action plan to achieve the planned technology end-state that best supports the business capabilities of the organization.
radar ecosystem specialists
Hammarby allé 47
SE-120 30, Stockholm SWEDEN
Tel: +46 8 12 20 80 00
Radar levererar produkter och tjänster till såväl leverantörer som köpare av IT. Våra insikter och tjänster skapar möjligheten att styra, inte med svansen och information om vad som redan skett, utan med information om nuläge, planer och prioriteringar.