M&A Strategies Backed by Proper IT Integration
During mergers and acquisitions, key stakeholders strive to bring about the expected synergies, only to realize that the practical realities of IT integration are often more complex than they initially anticipated.
IT Challenges of Mergers and Acquisitions
More often than not, the IT department has not even been adequately involved in the due diligence process. As a result, CIOs:
- Have very little time to prepare an IT integration strategy
- Have not always secured the budget and resources they need to perform the integration
- Are under intense pressure to reduce costs and realize a broad range of synergies as fast as possible
- Cannot risk operational disruptions that would offset the benefits of the transaction
- Have sometimes inherited IT platforms that are inflexible and poorly suited to acquisitions or divestitures
- Are not equipped to deal with the geographic challenges of some countries where viruses, phishing and malware are common practice
On the other hand, when CIOs are included early in the due diligence process, they have the opportunity to adopt a more agile infrastructure, which can enhance synergy opportunities and thus positively influence the price of the transaction.
Solutions
Having performed more than 70 successful merger, acquisition and divestiture projects for global companies in sensitive industries, such as mining and natural resources, we can deliver IT restructuring projects on a timely basis where other global IT vendors often fail. Find out more about our IT integration, migration and consolidation services.