The value of IT in M&A, planned strategies and inputs can help mergers succeed.
Posted on: January 17, 2014 | By: Tim McGhee | Uncategorized
The merger where the two companies are perfect and complimentary with its strategies and finances, but fall flat because the technology due diligence was missed; IT input was late or non-existent, and there was no well laid out plan for integration. This scenario is all too common and results in companies stumbling during M&A events.
1. Involve IT as soon as possible in the due diligence process. If there is a concern over confidentially, then get an independent experienced assessment of your acquisition. A standard financial/audit firms check list will leave many gaps and broad assumptions.
2. Make sure that financial and synergy projections have a reasonable review against the technology capabilities. A synergy of “we will combine our customer service” can be an extremely difficult effort and if the technology platforms are not somewhat similar and your technology department lacks integration experience.
3. Make sure your technology timeline and budgets are realistic to the events objectives. Too often executives create unrealistic expectations such as “we can do it in 6 months with this budget” without proper inputs. Thus creating frustrations and a trip back to the well for additional funding.
For additional risk and inputs to technology structuring during an M&A event. Please feel free to reach out to me.
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