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IT Mergers, Acquisitions & Divestitures

M&A Deals are becoming ever more complex. One-time costs of process and systems integration can go through the roof if not well managed. And with technology enabled synergies contributing up to 50% of total synergies, business and systems integration can easily make or break your M&A deal!

Mergers and acquisitions are highly complex…

So why is IT often the last to know?

When an organisation embarks on M&A activity, it’s always a challenge to get a clear understanding of what’s really happening. No two M&As the same since every organisation is different

Furthermore, the strategic rationale for a merger and/or acquisition also differs from one deal to the next. For instance it could be to:

  • Acquire technologies, expertise, products, and/or resources
  • Exploit economies of scale in specific industries
  • Invest in companies with a lot of promise
  • Improve performance
  • Consolidate to remove excess capacity
  • Improve time to market
  • And so on, and so on
IT Mergers, Acquisitions & Divestitures

A significant portion of M&A value is tied up in IT

Engage IT early on

Early engagement in the M&A life cycle by IT is critical to the successful delivery of an M&A deal.

Why?

Firstly, because technology enabled synergies (skills, experiences, systems, technologies, etc.) can contribute up to 50% of the total synergies. This has a significant impact on the total M&A deal value.

Secondly, with M&A deals becoming more and more complex, the one-time costs of process and systems integration can go through the roof if not well managed. Put simply, business and systems integration can easily make or break your M&A deal!

Deploying a consistent approach is paramount

Successful acquirers must be masters of process and systems integration. In addition to early engagement, consistency of integration process is key. A replicable, scalable, methodical approach must be deployed.

This is what we do at PTS. We bring a strategic lens to pre-, during-, and post-merger process and technology integration. Working closely with your teams, we focus on the following 3 core objectives.

Our Core Objectives

1

Supporting the Deal Thesis

Focusing on how technology drives deal value, with a pragmatic approach that identifies cost savings and supports the combined business.

2

Achieving Target State

We work closely with you to develop a plan for long-term integration and rationalisation, improving steady-state performance and capturing cost synergies.

3

Rigorous Preparation

We must ensure a smooth transition with a clear Day One plan, attention to key requirements across processes and functions, and First 100-Days post-closure plans.

IT M&A Checklist

Free Download

If you’re currently tackling a merger or acquisition, a great place to start would be to download our free IT M&A Readiness Checklist.

The purpose of the checklist is to help you quickly assess and score your readiness, and to highlight the areas that require immediate attention.