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Make IT a Partner in a Successful Merger or Acquisition

Make decisions regarding people, process, and technology to ensure IT is supporting the business goals of the M&A and not standing in the way.

Make decisions regarding people, process, and technology to ensure IT is supporting the business goals of the M&A and not standing in the way.


Your Challenge

M&A often instill fear in the hearts of IT leaders, who wonder what will become of their people, process, and technology in the new organization.

  • M&A can arise with little lead time, creating the need for the CIO to make quick and accurate decisions as to what needs to change in IT to support the new organization.
  • M&A can have different objectives, and require different but appropriate actions on the part of IT management.
  • IT-related activities are usually the largest cost items in a merger or acquisition, and when these costs are overlooked or underestimated, it can end up costing organizations millions in additional costs down the road.

M&A challenges differ depending on whether you are the acquired organization or the acquiring one.

Acquired Organization Challenges:

  • The CIO is tasked with finding a way of fitting into the new organization and advocating for his/her IT staff, processes, and systems.
  • The CIO may have to deal with significant downsizing as well as adapting to a lot of change.

Acquiring Organization Challenges:

  • CIOs struggle to get involved early in the due diligence process to advise senior management of the costs of integration as well as the integration challenges.
  • The CIO may be tempted to leave the IT departments in both organizations alone, but knows that this can lead to costly rationalizations down the road.


Our Solution

This research will begin to cover how to:

  • Ensure IT is involved early to avoid significant integration costs down the road and prolonged synergies.
  • Conduct an effective due diligence so they can provide the most holistic representation of their IT organization as possible.
  • Tailor decisions to your unique situation.
  • Choose a technology integration strategy based on your unique needs.
  • Optimize communication with IT staff.
  • Plan what should be done at each stage of the transition: Day 0 (Pre-M&A), Day 1, and Day 2+ (Post-M&A and beyond).


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Author

Amanda Robinson

Search Code: 75639
Last Revised: August 6, 2014

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