Get Instant Access
to This Blueprint

Cio icon

Mergers & Acquisitions: The Sell Blueprint

For IT leaders who want to have a role in the transaction process when their business is engaging in an M&A sale or divestiture.

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

  • IT can suggest a divestiture to meet the business objectives of the organization.
  • IT is brought in to strategy plan the sale/divestiture from both the business’ and IT’s perspectives.
  • IT participates in due diligence activities and complies with the purchasing organization’s asks.
  • IT needs to reactively prepare its environment to enable the separation.

Consider the ideal scenario for your IT organization.

Our Advice

Critical Insight

Divestitures 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 sale/divestiture 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 Sell Blueprint Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to find out how your organization can excel its reduction 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.

2. Discovery & Strategy

Create a standardized approach for how your IT organization should address divestitures or sales.

4. Execution & Value Realization

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


Onsite Workshop: Mergers & Acquisitions: The Sell 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 divesting or selling.
  • 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

Understand the rationale for the company's decision to pursue a divestiture or sale.

1.4

Assess the IT/digital strategy.

1.5

Identify pain points and opportunities tied to the divestiture/sale.

  • Business context implications for IT
1.6

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

  • IT’s divestiture/sale 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 separation strategy.

  • Separation strategy
1.11

Conduct a RACI.

  • RACI
1.12

Create the communication plan.

  • Communication plan
1.13

Prepare to assess target organizations.

  • Prepared to assess target organization(s)

Module 2: Mid-Transaction Due Diligence & Preparation

The Purpose

  • Establish the foundation.
  • Discover the motivation for separation.
  • Identify expectations and create the carve-out roadmap.
  • Prepare and manage employees.
  • Plan the separation roadmap.

Key Benefits Achieved

  • All major stakeholders are on the same page.
  • Methodology identified to enable compliance during due diligence.
  • Employees are set up for a smooth and successful transition.
  • Separation 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 assessed
  • IT operating model and IT governance structure defined
2.2

Review the business rationale for the divestiture/sale.

  • Business context implications for IT
2.3

Establish the separation strategy.

  • Separation 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

Create a carve-out roadmap.

  • Carve-out roadmap
2.7

Create a service/technical transaction agreement.

  • Service/technical transaction agreement
2.8

Measure staff engagement.

  • Engagement assessment
2.9

Assess the current culture and identify the goal culture.

  • Culture assessment
2.10

Create employee transition and functional workplans.

  • Employee transition and functional workplans
2.11

Establish the separation roadmap.

2.12

Establish and align project metrics with identified tasks.

2.13

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 separation.
  • Plan the separation roadmap.
  • Prepare employees for the transition.
  • Engage in separation.
  • Assess the transaction outcomes.

Key Benefits Achieved

  • All major stakeholders are on the same page.
  • Separation activities are planned and assigned.
  • Employees are set up for a smooth and successful transition.
  • Separation strategy and roadmap are 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 outline their relationship to the M&A process.

  • 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 divestiture/sale.

  • Business context implications for IT
3.4

Establish the separation strategy.

  • Separation strategy
3.5

Prioritize separation tasks.

3.6

Establish the separation roadmap.

3.7

Establish and align project metrics with identified tasks.

3.8

Estimate separation costs.

  • Separation roadmap and associated resourcing
3.9

Measure staff engagement.

  • Engagement assessment
3.10

Assess the current culture and identify the goal culture.

  • Culture assessment
3.11

Create employee transition and functional workplans.

  • Employee transition and functional workplans
3.12

Complete the separation by regularly updating the project plan.

  • Updated separation project plan
3.13

Assess the service/technical transaction agreement.

  • Evaluated service/technical transaction agreement
3.14

Confirm separation costs.

3.15

Review IT’s transaction value.

3.16

Conduct a transaction and separation SWOT.

  • SWOT of transaction
3.17

Review the playbook and prepare for future transactions.

  • M&A Sell 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 business perspectives on 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 divestiture/sale strategic direction.
  • Call #2 - Create program metrics and identify a standard separation strategy.

Guided Implementation #3 - Due Diligence & Preparation Phase
  • Call #1 - Prepare to carve out the IT environment.
  • Call #2 - Identify the separation 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 divestiture/sale 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.
Visit our COVID-19 Resource Center and our Cost Management Center
Over 100 analysts waiting to take your call right now: 1-519-432-3550 x2019