Insight
Why technology integration is key to a successful M&A
By Jennifer Mohundro, prosource.it specialist
In my experience, one of the biggest misconceptions in M&A is that IT integration starts after the deal closes.
In reality, the success of the transition is often determined months earlier. Typically, 95% of the IT activities happen pre-close.
In some cases, organisations rely on Transitional Services Agreements (TSAs), where one company temporarily continues providing IT services while the new environment is established. This can be a very useful solution in a complex M&A.
Whether organisations are merging, divesting or carving out business units, technology infrastructure plays a central role. IT integration is not one of the “things” to address once the ink dries on the deal. It is a core business function that determines how successfully the new organisation can operate from day one.
Integrating different systems is rarely straightforward. Different architectures, processes and data formats can quickly create compatibility challenges that are far more complex than initially anticipated. Testing and validation are needed to check that the integration is robust and effective.
The human element should also not be underestimated. Clear communication and thorough training are key to gaining employee buy-in and maintaining productivity.
Whether the transaction is a merger, acquisition, or divestment, as much as 95% of IT activity happens before close.
Set your course early
M&A timelines are often driven by financial and legal milestones, but operational success depends heavily on IT readiness. The confidentiality of early-stage M&A activity can make planning more challenging, but early preparation will shape the integration’s success.
During a M&A, both the buyer and seller teams must work through detailed planning activities, including knowledge-sharing sessions and transition preparation. The Change in Control (CiC) process itself can take anything from minutes to days, depending on the complexity of the environment. The priority is ensuring critical systems remain operational and secure throughout the transition.
A successful integration strategy should clearly define goals, timelines, responsibilities, and the long-term approach — whether systems will be fully integrated, partially integrated, or remain separate.
Throughout the execution phase, it's important to stay vigilant and continuously plan for the unforeseen. A successful integration not only meets strategic goals but also adapts to a landscape that will likely evolve as the process progresses. Recognising when a plan needs to change is just as important as developing one in the first place.
Data is critical
Data underpins every decision, strategy and innovation of a successful business.
During IT integration, it needs to be accurately collected, seamlessly migrated, assessed and tested. This helps maintain integrity and consistency across systems. If data quality is compromised during this process, it can lead to data loss and operational inefficiencies.
Early pre-close decisions by the buyer and seller include data sharing, format, sample or full sets, transport methods, and release dates. These require careful planning. Until CiC occurs, data sharing may be limited, creating a dynamic where IT groups work towards the same goal but follow different guidelines.
Recognising when a plan needs to change is just as important as developing one in the first place.
Manage the change
It is important to be transparent about what's happening, including any challenges and next steps to build trust and manage expectations. Getting everyone bought into a change is a journey. Some people need more time and information than others.
Keeping communication consistent whilst ensuring there is always a way for stakeholders to ask questions and provide feedback will allow everyone to navigate the changes in a way that works for them. By managing the change, you will build overall confidence in the transition and improve the chances of ongoing success.
The organisations that manage M&A integrations best are the ones that recognise IT isn’t simply supporting the transition, it’s enabling it. When planning is rushed, data is underestimated or people are left behind, the consequences are felt across the entire business.
But when integration is approached strategically, IT becomes one of the biggest drivers of operational stability and long-term value.
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