How to Navigate M&A Technology Integration: A Decision-Makers Guide

If you’re planning a merger and acquisition (M&A), your chief executive officer (CEO) likely wants everyone up and running with a company email on Day 1. However, onboarding people isn’t easy.

Integrating multiple IT environments creates productivity, compliance, and customer experience risks. In addition, IT teams must balance tight M&A deadlines with business continuity and data security.

With so many challenges, it’s unsurprising that most integrations miss the mark. According to the Harvard Business Review, 70-90% of acquisitions fail, and poorly executed integrations often cause these failures.

No pressure on IT, right? 

Ensuring a smooth transition can be challenging if your IT team is already fully utilized and doesn’t have the time or resources to integrate another company into your environment. An M&A technology partner can accelerate your transition and ensure your newly merged organization is poised for growth, innovation, and long-term success.

Look for a partner with a proven track record of successful technology integrations. Ideally, your partner should have a dedicated M&A technology team and the ability to handle everything—including software lifecycle management (SLM), cloud migrations, change management, Cloud Financial Management (FinOps), and data security. The right partner will ensure your technology is continually cost-optimized and aligned with your M&A objectives.

Key Questions to Ask Before, During, and After an M&A

Security…backups…disaster recovery…data centers…

You have a lot to think about during an M&A, and your technology environment is likely more extensive than you realize. Here are some questions to ask during each stage of an M&A so you can be sure to cover everything:

Pre-M&A

• Which systems, apps, and Enterprise resource planning (ERP) are we keeping?
• How many clouds do we have, and which ones will we keep going forward?
How are you going to consolidate user identities? How will this affect the users of both organizations?
• Where is our data currently stored? Do we need to migrate it during the M&A, and where should it go?
• Do we have the time and skillsets to manage the M&A integrations in-house?
• Is the M&A domestic or global? If it’s global, do we have a partner who has experience with international M&As?

Day 1

• Now that we can see the other company’s data, how can we ensure it fits into our processes?
• What communication and collaboration tools are we using? Should we make any changes to our related technologies or processes or provide training for new employees?
• What security tools do we have in place? Do we need to add any new technologies or policies?
• Do employees have the proper access to all necessary tools so they can be productive from Day 1?

Post-M&A

• How did the M&A go? Is there anything we still need to take care of?
• Are we struggling with any compliance issues? If so, what is needed for us to maintain compliance?
• Do we need to standardize our clouds and security?

Achieving M&A Success: 7 Best Practices for a Smooth Technology Integration

No two M&As are the same. But if you plan early and follow these best practices, you will be better positioned to navigate the complexities of integration and enjoy long-term success.

1. Develop a comprehensive integration plan. Your plan should include timelines, milestones, and key performance indicators (KPIs) to track your progress. It should also be flexible enough to adapt to unexpected challenges or changes in your business environment.

2. Prioritize. Don’t try to tackle everything at once. Instead, focus on the use cases to keep the business running during your M&A. For example, you can start with keeping users connected and secure.

3. Think beyond IT. Successful integration isn’t just about technology. It also requires you to manage people and processes. Work with all stakeholders, including people from HR, Finance, Legal, Marketing, and other lines of business. A change management team can communicate with these stakeholders, reduce resistance, and drive the adoption of new tools.

4. Focus on the end-user experience. According to an academic study from The Wharton School, 33% of acquired employees leave after an M&A. Improving the end-user experience can make life easier for employees and potentially motivate them to stay. Give users a choice of tools and keep them involved and engaged throughout the transition.

5. Revisit your software contracts and licenses. Consolidating software vendor agreements is challenging. Look for an integration partner with licensing experience who can help you negotiate the best terms. Your partner should also work in your interest—not your vendors’ interest.

6. Simplify and consolidate everything. Running duplicate applications creates inefficiencies for users and your IT team. Use the M&A as an opportunity to clean and consolidate your applications. Streamlining things will improve your user experience and make management easier.

7. Ensure data security and compliance. Conduct thorough audits and risk assessments to identify potential vulnerabilities, and work closely with your legal and compliance teams to address them. Taking these steps will help protect your organization against potential legal, security, and financial risks.

Ensuring a smooth transition can be challenging if your IT team is already fully utilized and doesn’t have the time or resources to integrate another company into your environment. An M&A technology partner can accelerate your transition and ensure your newly merged organization is poised for growth, innovation, and long-term success.

Look for a partner with a proven track record of successful technology integrations. Ideally, your partner should have a dedicated M&A technology team and the ability to handle everything—including software lifecycle management (SLM), cloud migrations, change management, Cloud Financial Management (FinOps), and data security. The right partner will ensure your technology is continually cost-optimized and aligned with your M&A objectives.