What Technology Challenges Do Mergers and Acquisitions Face?
In our previous article about the technology challenges of mergers and acquisitions (M&As), we spoke about the importance of M&As as the primary drivers of inorganic growth for many companies around the world. There is power behind merging or acquiring another entity for the purpose of creating or expanding new lines of service and/or products when necessary or entering new geographical markets as desired. But often times, technology is an overlooked part of the process. So how can you keep technology in mind each step of the way? What should you be doing to ensure a smooth process before and during the M&A rather than after the fact?
An Ad-Hoc Approach to Technology Can Quickly Leave an Acquisition Feeling Less Valuable and More Hectic… But the Opposite is Also True.
An ad-hoc approach to technology can quickly leave an acquisition feeling less valuable and more hectic, but fortunately, the opposite is also true. If you have a streamlined, flexible approach to your information technology wherein all decisions are made and thought-out ahead of time, an acquisition can feel incredibly valuable and secure. So what should you be doing to ensure a smooth process before and during the M&A? Here’s a few tips:
- Adopt a flexible environment before any deals go through
If you have a more flexible and adaptive environment that provides a platform for a range of business applications, you’re able to quickly and efficiently integrate the acquired company into your environment. This means you should have standardization across the board – meaning one accounting system, operating system, etc. rather than multiple options is best.
- Make sure you’re able to accomodate any new data gained
During an M&A, you’re likely to gain new data – and in some cases – you may gain a massive amount that needs to be stored. Take a look at your existing amount of storage available to you. If you’re with a cloud provider for data storage, talk to them about increasing your limit to ensure you’re able to adapt.
- Sit down with your technology partner to discuss changes
Your management team should sit down with your technology partner, alongside a representative from the acquired company, to discuss what systems, databases, and applications will be kept and what will be transferred to the existing environment. The end goal is an integrated infrastructure that enables each department to thrive.
Should You Perform an Assessment of Your Information Technology Infrastructure Beforehand?
Your technology partner should have thorough documentation on the state of your information technology infrastructure. If they don’t or you’re not working with a technology partner, it’s important to assess the state of your information technology infrastructure, including:
- Networking design and equipment
- Third-party supplier contracts
- And more
You will need to develop a migration plan that meets the requirements of both entities while ensuring there is no outdated, antiquated equipment involved.
How Does Elevate Services Group Help You Create Synergies in People, Processes, and Technologies?
Following an M&A, Elevate Services Group is here to help assist both entities in the following areas:
- Creating 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.
- Assisting 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.
- Implementing 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. Let’s Talk. Call (720) 340-3849.
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