IT strategies for mergers and acquisitions
A merger or acquisition is a great way to diversify and expand a company’s reach into new market segments or gain market share and growth. It’s a common business practice which has been executed by some of the most successful companies in the world.
It’s a really exciting time for your business but it can also be quite a complex, high pressured event for your IT leaders, staff and systems.
Migrating to a single IT strategy is essential to ensure that efficiencies will be made to make the merger or acquisition worthwhile. A quick and easy migration will ensure that the newly merged business is ready to trade from day one.
Planning is absolutely key to this success and the merge of multiple IT solutions should be treated as a major project with timelines, milestones and budgets mapped out from the very beginning. This will help to give you an idea of the work that’s needed and help to prevent any hidden costs or surprise issues.
How important is IT when it comes to merging and acquisitions?
It’s absolutely essential that IT systems are successfully integrated to enable you to reap the benefits of the business consolidation.
M&A's are notoriously disruptive to businesses and can derail current projects whilst also delaying innovation and preventing you from working towards larger business goals.
The IT challenges of mergers and acquisitions
Potential issues in IT strategies can be overlooked when it comes to a merger and you need to plan in advance to ensure that you don’t run into un-anticipated problems which can throw your merger off track.
Tech culture and objectives for both companies should be aligned and the resources and expertise of both should be taken into account. If not, this can lead to inefficiencies, incompatible technology and clashing practices.
Just some of the things which need to be considered are contracts and licenses with email clients, software platforms, internet providers and CRM systems. Networks and Security are obviously key to both any transition or transformation period.
You also need to consider the devices that employees are using. If they continue to use those that they are comfortable with, this will reduce inefficiencies but you also need to ensure that the devices are compatible with each other to ensure that teams from the merging companies can work together seamlessly.
The business benefits of IT in mergers and acquisitions
Systems and technology are involved in almost every aspect of your business and consolidating the two will ensure that there is one business and cultural identity. It will also lead to efficiencies in costs – after all, you don’t want to be paying for two systems or licenses which can do the same job.
IT will be a huge contributing factor to the overall success of the M&A and therefore it’s important that you get the strategy just right.
How to navigate IT during a merger or acquisition
It’s essential to ensure that all of the required systems are up and running reading for day one of the newly merged company.
Techolony can provide a successful M&A IT solution. With consultation we can help to separate out IT data, networks, applications, infrastructure and services to enable a diversifying company to transfer their IT services to the buying company, enabling the merger to run smoothly.
We also provide systems integration to merge data, applications and systems to ensure that the buying company has optimised their IT with the newly acquired systems.
We can handle all aspects of project management in the M&A space through our highly skilled programme delivery team from discovery through to implementation. This can be scaled to meet your budget and needs.
Techolony specialise in Defining, Designing and Delivering complex IT Change that provide tangible business benefits and a clear return on investment.
For the past five years our teams have worked on major company divestments in the insurance and FS sector.
If you wish to speak to the Consulting Team about any of the issues described in this article, phone us on 0161 209 3922
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