Part 1: The Technology Challenges of Mergers and Acquisitions

Close up of a employee using a laptop to help make Mergers and Acquisitions easier and the process smoother.


The Technology Challenges of Mergers and Acquisitions


Mergers and acquisitions (M&As) are the primary drivers of inorganic growth for many companies around the world – enabling them to create or expand new lines of service and/or products when necessary or enter new geographical markets as desired. For most companies, the decision to merge or acquire is the easy part… What comes next becomes quite difficult, especially in terms of technology. Although something as simple as acquiring a smaller company can deliver greater flexibility and faster time to market, they’re often riddled with less organized, well-planned technology that’s not secure or efficient.

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What Are the Technology Challenges of Mergers and Acquisitions?


During an M&A of any sort, it’s crucial to integrate systems, databases, and applications fast – allowing the companies to run in synchronization without any sort of misaligned processes and procedures. The following technology challenges are quite common when it comes to mergers and acquisitions:


1. A lack of integration


Typically, the acquired and the acquiring company come in with their own financial systems, partners, applications, etc. – making it difficult to integrate together in terms of technology. This often slow down operational processes – from ERP to sales to HR and everything in between. It’s critical to synchronize and standardize as soon as possible.


2. A lack of visibility


If the acquired and the acquiring company are operating in a similar industry, they may have duplicate customer information, but a lack of visibility can create difficulties in terms of sales and business development. It’s helpful to obtain an updated, single point of view into the customer data via a data integration system that combines and organizes everything.


3. A lack of compliance


Unfortunately, it’s unlikely that both the acquired and the acquiring company have the same levels of compliance in terms of policies, documentation, and other factors. If the acquiring company is larger and more heavily regulated, they may need to get the acquired company up-to-speed quickly to prevent non-compliance.


4. A lack of security


Similar to a lack of compliance, a lack of security with the acquired company can be nerve-racking. If they don’t have any sort of security solutions, processes, and policies in place, the acquiring company may need to assist with integrating new employees and/or planning to create a multi-layered approach to protect against hackers.


How Does Elevate Services Group Help You Create Synergies in People, Processes, and Technologies?


Following an M&A, Elevate Services Group is able to assist companies in handling the technology challenges they face. We’ve worked with many companies during and after the change to:


  • Create a short and long-term plan to outline priorities in terms of activities and/or upgrades necessary to ensure systems, databases, and applications are aligned with one another for a cohesive environment.
  • Assist with informing customers of both entities on the occurrence and impact of the merger and/or acquisition via a press release, email or some other form of communication.
  • Implement new policies and procedures to enforce a strict information and/or data privacy program that keeps both entities safe against threats to confidentiality and/or compliance.


The Technology Challenges of Mergers and Acquisitions Can Be Difficult, But Elevate Services Group Is Well-Versed and Ready to Help.