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.
Onsite Workshop
IT faces these common obstacles when suggesting, engaging in, or delivering on acquisitions or M&A purchases:
- IT is unaware of transformational considerations of the organization.
- IT does not have an optimal process or approach to follow when it comes to M&As.
- IT is at risk of losing top talent due to a lack of transparency, support, or engagement.
- IT components are not properly considered in due diligence, causing inaccurate synergy expectations.
- There is a lack of transparency in communication to IT when it comes to the true goal and rationale behind the transaction.
- IT was not brought in until post-transaction and has been forced to react to the situation.
The goal is to establish IT as a valuable partner and driver of the acquisition process by:
- Identifying the critical requirements expected of IT during an M&A.
- Developing a transaction strategy aligned with business goals to ensure a successful transaction and integration.
- Determining and communicating where IT risks should be considered and addressed.
- Identifying and delivering on IT-related synergies through savings and returns on investments.
- Finalizing IT’s integration strategy and preparing to deliver.
- Following through on the execution plan as it relates to IT capabilities.
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. |
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| 1.2 | Identify key stakeholders and outline their relationship to the M&A process. |
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| 1.3 | Identify the rationale for the company's decision to pursue an acquisition. |
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| 1.4 | Assess the IT/digital strategy. |
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| 1.5 | Identify pain points and opportunities tied to the acquisition. |
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| 1.6 | Create the IT vision and mission statements and identify IT guiding principles and the transition team. |
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| 1.7 | Document the M&A governance. |
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| 1.8 | Establish program metrics. |
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| 1.9 | Create the valuation framework. |
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| 1.10 | Establish the integration strategy. |
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| 1.11 | Conduct a RACI. |
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| 1.12 | Create the communication plan. |
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| 1.13 | Prepare to assess target organization(s). |
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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. |
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| 2.2 | Review the business rationale for the acquisition. |
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| 2.3 | Establish the integration strategy. |
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| 2.4 | Create the due diligence charter. |
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| 2.5 | Create a list of IT artifacts to be reviewed in the data room. |
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| 2.6 | Conduct a technical debt assessment. |
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| 2.7 | Assess the current culture and identify the goal culture. |
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| 2.8 | Identify the needed workforce supply. |
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| 2.9 | Create the valuation framework. |
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| 2.10 | Establish the integration roadmap. |
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| 2.11 | Establish and align project metrics with identified tasks. |
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| 2.12 | Estimate integration costs. |
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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. |
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| 3.2 | Gather and evaluate the M&A strategy, future-state operating model, and governance. |
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| 3.3 | Review the business rationale for the acquisition. |
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| 3.4 | Establish the integration strategy. |
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| 3.5 | Prioritize integration tasks. |
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| 3.6 | Establish the integration roadmap. |
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| 3.7 | Establish and align project metrics with identified tasks. |
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| 3.8 | Estimate integration costs. |
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| 3.9 | Assess the current culture and identify the goal culture. |
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| 3.10 | Identify the needed workforce supply. |
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| 3.11 | Create an employee transition plan. |
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| 3.12 | Create functional workplans for employees. |
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| 3.13 | Complete the integration by regularly updating the project plan. |
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| 3.14 | Begin to rationalize the IT environment where possible and necessary. |
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| 3.15 | Confirm integration costs. |
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| 3.16 | Review IT’s transaction value. |
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| 3.17 | Conduct a transaction and integration SWOT. |
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| 3.18 | Review the playbook and prepare for future transactions. |
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