Merger/ Acquisition Management

M&A transactions provide access to new markets and products. Revenue gains may materialize quickly and redundant costs can be eliminated overnight, however sustaining value over the long-term is the most important challenge to master. Perhaps the most complex area to manage strategically is integration of information technology.

In an integration, the highest volume of activity sustained over the longest period of time typically emerges from the IT environment. Volume increase by itself generates complexity, the fact that IT is so tightly woven into other functions aggravates this. Research clearly shows integrating information systems is a primary challenge for large merger and acquisition transactions.

Success depends on an organization deploying an IT integration strategy that is closely aligned with overall strategic objectives, as well as refined to meet the unique needs within each department. Without alignment, IT integration is little more than a list of initiatives with no cohesive or complementary function. Building staff commitment to new goals is crucial to success, as is organizational support for these initiatives. IT must collaborate with leadership elements to ensure maximum cost efficiency, renew stability and preserve momentum.

Effective integration and management are pivotal requirements to enable success following a merger or acquisition.