Total annual global M&A deal volume for all deal types in 2022 ($3.63 trillion) surpassed the totals from 2017 ($3.44 trillion) and 2020 ($3.42 trillion) according to Bloomberg Law Analysis. Players like Amazon have excelled in developing an ecosystem of products and services that leverages rapid expansion. Thus, smaller players are seeking similar growth through strategic partnership deals and acquisitions.
Operational alignment, business continuity planning, data governance, and IT integration are critical to achieving synergies between your business and a new acquisition.
According to Deloitte, only 56% of decision-makers took information technology into consideration during the due diligence phase. The costs and complexities of IT integration in M&A can stall operational plans and dramatically increase project timelines.
There is a lot of money at stake. Over 50% of business synergies seek to profit from the technology the acquired company has developed. Nearly three quarters of technology integrations fail in the beginning, not the end. Therefore, thinking about IT integration early is essential.
Our team will assess the technology and security capabilities for an acquisition to identify “red flags” that could impact the overall viability of the transaction or require more in-depth analysis to determine the actual risks to the organization. Our report will provide an overview of the IT environment, identify areas of risk, and offer recommendations.
Our team will perform an in-depth analysis of the target company’s IT capabilities. This includes reviewing IT assets (hardware and software), licensing agreements, IT service provider agreements, in-place security solutions, and compliance and privacy obligations. Our report is broken into two sections” an executive summary of our observations and recommendations and a detailed analysis of each of the components of the assessment.
Information technology experts can help outline the scope of work, associated costs, and timelines required to fully integrate your system with those of the target company. Potential integration issues identified in this phase avoid expensive surprises down the line.
Technology integrations are an iterative process where elements are progressively migrated to align with their IT portfolios. A “test” candidate is then built to serve as a point of reference for all subsequent candidates. This creates an effective, repeatable model for executing post – M&A migrations.
Briefly, this process will follow the below steps:
Upon completion of the migration, on-staff IT teams can work on core business projects. This allows integration consultants, like Bridgehead IT, to continue migrating the other users, complete maintenance tasks, and deploy any customizations.
Headquartered in San Antonio, Texas, Bridgehead IT’s team of experts are here to help your business find the best technology solutions, from migrating your data into the cloud, to structured cabling and cyber security compliance. We are an award-winning, global provider of business and technology consulting services. This has been amplified through our industry-leading partnerships with Microsoft, HPE, Cisco, VMWare, SonicWALL, and Facebook Workplace. Bridgehead IT can transform your business into everything it is capable of and more.
Thoughtful solutions, not quick fixes.
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