M&A Information Technology Best Practices

Chapter 24

Important Role of Data in an M&A Transaction

Lynda GibsonAnil TondavadiChris Vu

Mergers and acquisitions (M&A) can present major challenges for the acquirer and the acquired alike. The rewards can be significant, but the risks are generally high—not all M&As deliver the targeted shareholder value. While many executive careers have prospered because of successful mergers and acquisitions, many others have gone off the rails due to unsuccessful mergers.

Technology and the role of information technology (IT) have become critical—without the appropriate executed strategy, the entire M&A event can go up in flames. Ideally, IT leadership is involved up front in the strategic conversations, as an equal at the executive table. This participation can allow for the discussion of potential technological issues and solutions as part of the decision and planning processes. However, in our experience, conventional technology integration techniques may fall short of achieving desired, required, expected, or anticipated post-merger integration business targets because they rely heavily on traditional approaches that sometimes fail to take into account specific information management (IM) challenges and opportunities. In particular, these focus on:

1. Data integration planning to develop a future-state enterprise data architecture, including data integration and access patterns, that is based on key data domains and aligned with the tactical goals of each business function and the strategic ...