How to improve your M&A IT integration: Strategies for success
Maximize efficiency, fuel growth, and unleash the power of successful IT consolidation
Mergers and acquisitions (M&As) are strategic maneuvers that can propel an organization toward new horizons of growth and expansion. M&As can transform a company's trajectory, enabling it to tap into new markets, acquire valuable assets, and...
Why many organizations struggle with technology integration
How to master the M&A tech terrain with proficiency
SHI MAaaS helps you overcome the challenges standing in the way of your M&A success. Discover how we solve what’s next for your M&A strategy through expert IT consolidation and integration.
Mergers and acquisitions (M&As) are strategic maneuvers that can propel an organization toward new horizons of growth and expansion. M&As can transform a company's trajectory, enabling it to tap into new markets, acquire valuable assets, and achieve economies of scale.
However, as with any significant strategic initiative, M&As have their own set of challenges. One of the most formidable of which is the integration of disparate IT systems.
Today more than ever, technology is the backbone of your organization. It supports every facet of your business, from operations and customer service to decision-making and strategic planning. Therefore, when two companies decide to merge — or when one company acquires another — consolidating respective IT systems becomes a critical component of the M&A process.
But IT consolidation is an uphill battle of its own, one that can become Sisyphean without the right planning and coordination.
IT integration during an M&A involves consolidating software applications, databases, networks, and hardware. It requires seamless data migration while ensuring its integrity, privacy, and security. It also necessitates the alignment of IT policies, procedures, and practices, which may differ significantly between the merging entities.
Furthermore, the integration process must address software compatibility issues, cybersecurity, change management, and cultural differences in IT practices.
The merging of these diverse IT systems can be likened to solving a complex puzzle. Each piece of the puzzle represents a different component of the IT infrastructure, and each must be meticulously fitted together to form a coherent and secure whole.
Many organizations struggle to put this puzzle together effectively and efficiently:
59% of companies spent 6% or more of the deal value on integration in 2022, compared to 38% previously. This figure indicates the increasing complexity and cost of IT integration during M&As.
70% of unsuccessful deals limited focus on technology early in the deal cycle.
Yet, despite the complexities of IT integration, organizations often take on the burden themselves. It doesn’t take long before they wish they hadn’t.