As companies navigate mergers or acquisitions they invariably run up against sticky post-merger problems that often prevent them from realizing their potential. Here are 6 things to consider when thinking about M&A.
We Discuss:
- What are the major areas prone to M&A failure? (Hint: Security)
- Why do so many deals fail? - What role does technology play in M&A failure rates?
- What is the impact of culture on deals that work out great?
- What can consultants do when working M&A to help ensure good outcomes?
6 Takeaways:
- Legacy technical debt, like outdated systems and programming languages, can necessitate more IT consolidation post-merger (26:47).
- Effective security in M&A scenarios requires broad organizational maturity as most business leaders don't understand security implications (32:52).
- The business drives M&A decisions based on strategic goals, not to acquire IT systems, so technology enablement should align to business needs (33:36).
- Cultural alignment and change management are critical for integration success but often overlooked in M&A planning (35:25).
- Customer impacts from the merger like billing changes need consideration in addition to internal system transitions (37:57).
- There are often unknown cultural nuances in an acquired company that must be learned in M&A before full value realization (39:42).