M&A Information Technology Best Practices

Chapter 8

Supporting Business Objectives with M&A-Aware Enterprise Architecture

Pavel KrumkachevShalva NolenNitin PrabhakarRajat Sharma

Mergers and acquisitions (M&A) are transforming companies, creating opportunities, and revolutionizing whole industries in many corners of the business world. However, many M&A transactions fall far short of their goals and often fail because of a lack of planning and an inability to execute on post-merger integration. This is evident in the area of information technology (IT), where understanding and planning for the impact of deals on IT can make or break an organization's M&A strategy and the synergies realized.

Based on our collective experience of conducting IT due diligence, preclose planning, postclose execution, and synergy tracking, we have identified specific components of an “M&A-aware” enterprise architecture that can be proactively established by companies in advance of an M&A event. When implemented correctly, these options can help increase the projected merger synergies, accelerate the time to achieve these synergies, and help reduce the cost of M&A transactions.

Sources of IT-Related Synergies during M&A

The corporate IT environments consist of the technical components required to support the many applications and services needed by a company. These components include, but are not limited to:

• Data centers (including disaster recovery sites).
• Network and network equipment (switches, routers, etc.).
• Computers (servers, PCs, laptops) ...