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Mergers & Acquisitions: The Buy Blueprint

For IT executives who want to be a leader in the M&A transaction process when their business is pursuing a potential acquisition.

There are four key scenarios or entry points for IT as the acquiring organization in M&As:

  • IT can suggest an acquisition to meet the business objectives of the organization.
  • IT is brought in to strategy plan the acquisition from both the business’ and IT’s perspectives.
  • IT participates in due diligence activities and valuates the organization potentially being acquired.
  • IT needs to reactively prepare its environment to enable the integration.

Consider the ideal scenario for your IT organization.

Our Advice

Critical Insight

Acquisitions are inevitable in modern business, and IT’s involvement in the process should be too. This progression is inspired by:

  • The growing trend for organizations to increase, decrease, or evolve through these types of transactions.
  • A maturing business perspective of IT, preventing the difficulty that IT is faced with when invited into the transaction process late.
  • Transactions that are driven by digital motivations, requiring IT’s expertise.
  • There never being such a thing as a true merger, making the majority of M&A activity either acquisitions or divestitures.

Impact and Result

Prepare for a growth/integration transaction by:

  • Recognizing the trend for organizations to engage in M&A activity and the increased likelihood that, as an IT leader, you will be involved in a transaction in your career.
  • Creating a standard strategy that will enable strong program management.
  • Properly considering all the critical components of the transaction and integration by prioritizing tasks that will reduce risk, deliver value, and meet stakeholder expectations.

Mergers & Acquisitions: The Buy Blueprint Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to find out how your organization can excel its growth strategy by engaging in M&A transactions. Review Info-Tech’s methodology and understand the four ways we can support you in completing this project.

1. Proactive Phase

Be an innovative IT leader by suggesting how and why the business should engage in an acquisition or divestiture.

2. Discovery & Strategy

Create a standardized approach for how your IT organization should address acquisitions.

4. Execution & Value Realization

Deliver on the integration project plan successfully and communicate IT’s transaction value to the business.


Onsite Workshop: Mergers & Acquisitions: The Buy Blueprint

Onsite workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost onsite delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

Module 1: Pre-Transaction Discovery & Strategy

The Purpose

  • Establish the transaction foundation.
  • Discover the motivation for acquiring.
  • Formalize the program plan.
  • Create the valuation framework.
  • Strategize the transaction and finalize the M&A strategy and approach.

Key Benefits Achieved

  • All major stakeholders are on the same page.
  • Set up crucial elements to facilitate the success of the transaction.
  • Have a repeatable transaction strategy that can be reused for multiple organizations.

Activities

Outputs

1.1

Conduct the CIO Business Vision and CEO-CIO Alignment Diagnostics.

  • Business perspectives of IT
1.2

Identify key stakeholders and outline their relationship to the M&A process.

  • Stakeholder network map for M&A transactions
1.3

Identify the rationale for the company's decision to pursue an acquisition.

1.4

Assess the IT/digital strategy.

1.5

Identify pain points and opportunities tied to the acquisition.

  • Business context implications for IT
1.6

Create the IT vision and mission statements and identify IT guiding principles and the transition team.

  • IT’s acquiring strategic direction
1.7

Document the M&A governance.

  • Governance structure
1.8

Establish program metrics.

  • M&A program metrics
1.9

Create the valuation framework.

  • IT valuation framework
1.10

Establish the integration strategy.

  • Integration strategy
1.11

Conduct a RACI.

  • RACI
1.12

Create the communication plan.

  • Communication plan
1.13

Prepare to assess target organization(s).

  • Prepared to assess target organization(s)

Module 2: Mid-Transaction Due Diligence & Preparation

The Purpose

  • Establish the transaction foundation.
  • Discover the motivation for integration.
  • Assess the target organization(s).
  • Create the valuation framework.
  • Plan the integration roadmap.

Key Benefits Achieved

  • All major stakeholders are on the same page.
  • Methodology identified to assess organizations during due diligence.
  • Methodology can be reused for multiple organizations.
  • Integration activities are planned and assigned.

Activities

Outputs

2.1

Gather and evaluate the stakeholders involved, M&A strategy, future-state operating model, and governance.

  • Stakeholder map
  • IT strategy assessment
  • IT operating model and IT governance structure defined
2.2

Review the business rationale for the acquisition.

  • Business context implications for IT
2.3

Establish the integration strategy.

  • Integration strategy
2.4

Create the due diligence charter.

  • Due diligence charter
2.5

Create a list of IT artifacts to be reviewed in the data room.

  • Data room artifacts
2.6

Conduct a technical debt assessment.

  • Technical debt assessment
2.7

Assess the current culture and identify the goal culture.

  • Culture assessment
2.8

Identify the needed workforce supply.

  • Workforce supply identified
2.9

Create the valuation framework.

  • IT valuation framework
2.10

Establish the integration roadmap.

2.11

Establish and align project metrics with identified tasks.

2.12

Estimate integration costs.

  • Integration roadmap and associated resourcing

Module 3: Post-Transaction Execution & Value Realization

The Purpose

  • Establish the transaction foundation.
  • Discover the motivation for integration.
  • Plan the integration roadmap.
  • Prepare employees for the transition.
  • Engage in integration.
  • Assess the transaction outcomes.

Key Benefits Achieved

  • All major stakeholders are on the same page.
  • Integration activities are planned and assigned.
  • Employees are set up for a smooth and successful transition.
  • Integration strategy and roadmap executed to benefit the organization.
  • Review what went well and identify improvements to be made in future transactions.

Activities

Outputs

3.1

Identify key stakeholders and determine IT transaction team.

  • M&A transaction team
3.2

Gather and evaluate the M&A strategy, future-state operating model, and governance.

  • Stakeholder map
  • IT strategy assessed
  • IT operating model and IT governance structure defined
3.3

Review the business rationale for the acquisition.

  • Business context implications for IT
3.4

Establish the integration strategy.

  • Integration strategy
3.5

Prioritize integration tasks.

3.6

Establish the integration roadmap.

3.7

Establish and align project metrics with identified tasks.

3.8

Estimate integration costs.

  • Integration roadmap and associated resourcing
3.9

Assess the current culture and identify the goal culture.

  • Culture assessment
3.10

Identify the needed workforce supply.

  • Workforce supply identified
3.11

Create an employee transition plan.

  • Employee transition plan
3.12

Create functional workplans for employees.

  • Employee functional workplans
3.13

Complete the integration by regularly updating the project plan.

  • Updated integration project plan
3.14

Begin to rationalize the IT environment where possible and necessary.

  • Rationalized IT environment
3.15

Confirm integration costs.

3.16

Review IT’s transaction value.

3.17

Conduct a transaction and integration SWOT.

  • SWOT of transaction
3.18

Review the playbook and prepare for future transactions.

  • M&A Buy Playbook refined for future transactions

About Info-Tech

Info-Tech Research Group is the world’s fastest-growing information technology research and advisory company, proudly serving over 30,000 IT professionals.

We produce unbiased and highly relevant research to help CIOs and IT leaders make strategic, timely, and well-informed decisions. We partner closely with IT teams to provide everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for their organizations.

What Is a Blueprint?

A blueprint is designed to be a roadmap, containing a methodology and the tools and templates you need to solve your IT problems.

Each blueprint can be accompanied by a Guided Implementation that provides you access to our world-class analysts to help you get through the project.

Need Extra Help?
Try Our Guided Implementations

Get the help you need in this 4-phase advisory process. You'll receive 9 touchpoints with our researchers, all included in your membership.

Guided Implementation #1 - Proactive Phase
  • Call #1 - Scope requirements, objectives, and your specific challenges.
  • Call #2 - Determine stakeholders and their perspectives of IT.
  • Call #3 - Identify how M&A could support business strategy and how to communicate.

Guided Implementation #2 - Discovery & Strategy Phase
  • Call #1 - Establish a transaction team and acquisition strategic direction.
  • Call #2 - Create program metrics and identify a standard integration strategy.

Guided Implementation #3 - Due Diligence & Preparation Phase
  • Call #1 - Assess the potential organization(s).
  • Call #2 - Identify the integration program plan.

Guided Implementation #4 - Execution & Value Realization Phase
  • Call #1 - Establish employee transitions to retain key staff.
  • Call #2 - Assess IT’s ability to deliver on the acquisition transaction.

Author(s)

Ibrahim Abdel-Kader

Brittany Lutes

Contributors

  • Eric Dolinar, Manager, M&A Consulting, Deloitte Canada
  • Christoph Egel, Director, Solution Design & Deliver, Cooper Tire & Rubber Company
  • David Glazer, Vice President of Analytics, Kroll
  • Nancy McCuaig, Senior Vice President, Chief Technology and Data Office, IGM Financial Inc.
  • Nayma Naser, Associate, Deloitte
  • Mark Rosa, Senior Vice President & Chief Information Officer, Mohegan Gaming and Entertainment
  • Jim Robson, Senior Vice President (retired), Share Enterprise Services, Great-West Life
  • Nikki Seventikidis, Senior Manager, Finance Initiative & Continuous Improvement, CST Consultants Inc.
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