M&A TECHNOLOGY INTEGRATION SERVICES

1.

Strategy & Analysis

A part of every good merger and/or acquisition is thorough due diligence and planning, preferably pre-deal, however critical during the 1st 100 days post deal.

In order to complete an M&A that benefits all parties, our due diligence and planning begins with an introduction of companies involved. From there, we assess the needs of the parent company, followed by identifying and defining goals. After the assessment, we discuss in further detail how other facets of our service offerings can help. With our help, your business can shorten the timeframe for the Transition Services Agreement (TSA) and obtain a ROI sooner.

Most M&A deals failure is directly attributed to poor technical due diligence pre-deal but more importantly in the 1st 100 days post deal’s. Poor due diligence typically results in bad decisions and bad investments, often with technology solutions selected because they’re the new “hot” thing rather than actual business requirements.

Before any major change, assessing your own capabilities is imperative and the same is true of the technology you use. In fact, technology assessment should be part of overall assessment so that it is not overlooked during the initial stages.

We look at 8 key areas of due diligence

Business Strategy M and A Technology Intergration Services

Business Strategy

  • Review the business strategy and growth plans to ensure technology decisions are aligned
  • Conduct a needs analysis
Strategy Roadmaps Budgets M and A Technology Intergration Services

Tech Strategy, Roadmaps and Budgets

  • Review the technology strategy to ensure there is synergy with the Business strategy

  • Evaluate the ability of the target environment to integrate future acquisitions

  • Review key planned investments related to technology

People and Organisation M and A Technology Intergration Services

People and Organisation

  • Review IT Organisation size and capabilities

  • Determine if staffing levels are appropriate for growth

  • Identify single points of failure

  • Identify the right people with key attributes to achieve

Platforms and Architecture M and A Technology Intergration Services

Technology Platforms & Architecture

  • Create an overview of the technology landscape focusing on the key line of business applications

  • Determine any scalability limitations and technology gaps

  • Review the technology stack and an inherent technical debt

Data M and A Technology Intergration Services

Data

  • Identify how the business stores data and leverages it to meet business needs
  • Identify data separation requirements including data sovereignty, compliance requirements.
  • Identify the value of data to the business
Cyber Security Compliance IT Services M and A Technology Intergration Services

Cyber Security, Compliance & IT Service Management

  • Evaluate IT Security policies; procedures; data privacy; GDPR compliance
  • Evaluate IT Security standards in place against industry standard frameworks
  • Evaluate the IT Service Management Maturity levels including ability to scale
Tech Infrastructure M and A Technology Intergration Services

Technology Infrastructure

  • Review IT Infrastructure to support scalability requirements

  • Evaluate the Network and Security infrastructure to ensure availability, scalability and performance requirements can be met

  • Evaluate hosting facilities technology stack

  • Identify IT Infrastructure applications

Business Applications M and A Technology Intergration Services

Business Applications

  • Identify key line of business applications including internal and external integrations

  • Identify vendors; age, costs, development lifecycle etc

  • Identify key business processes linked to the identified business applications

2.

Execution

No one wants a deal that results in a semi-integrated company, so post acquisition technologies merger planning should begin at the beginning of the deal. Affiniti Integrations can:

  • Define Day 1 Target operating model

    • Identify IT-Specific Processes in Scope for the Transaction per the IT Charter
    • Identify Subprocesses for each IT-Specific Process
    • Identify, assess and track critical Day One tasks for smooth transition
    • Compile Day 1 TOM Systems Inventory, Ensuring that Overall IT Architecture, IT-Specific Systems/Tools
  • IT Roadmapping – customised to your specific IT functions models

    • Determining whether IT budget is centralised or dispersed
    • Review of overall IT roadmap
    • Overall IT program budgeting and contingencies
  • IT Organisation, design, processes & policies

  • Design of IT facilities requirements

  • Data stewardship

  • Information security

  • Hardware, software & licensing

  • Implementation requirements

3.

Optimisation

So running a post-merger integration (PMI) project is the same as any other type of project, yes? Err, no.

Of course, there are similarities at the broadest level however what needs to be achieved is very different dependant upon the type of acquisition but also the value realisation objectives set initially and then revised over time.

The CIOs who have survived an M&A, talk about it with the same heart-quickening cadence an adrenaline junkie uses to describe an extreme sport.

What is Post-Merger Integration (PMI)?

Post-merger integration is the process of unifying two entities in a manner that creates the most value for the future of the enterprise by realizing efficiencies and synergies. From an IT perspective, PMI is a complex process requiring the leadership to ensure a smooth process.

Depending on the Execution approach PMI can occur as soon as Day 1, however this can lead to inevitable conflicts between achieving separation and transformation. AFFINITI Integrations will work with you to develop the PMI approach which works for you!

Every merger is about achieving synergies, many of these are now technology-enabled. That’s why it’s essential to assess the IT capabilities of the pre- and post-deal companies and pinpoint the applications that will help achieve synergies – and the ones that won’t.

AFFINITI Integrations focuses on the following key areas to name a few:

  • Technology Roadmaps & Strategy

    • Develop and/or review Tech Roadmaps
    • Technology adoption review
    • Business consultation
    • Infrastructure Optimisation
    • Technical Debt Review
  • Change

    • Process Improvements
    • Culture Integration
    • Business change impacts particularly with IT
  • Rationalization

    • Application consolidations
    • Infrastructure consolidation
    • Vendor Contracts alignments and review
    • Contract and cost optimization
  • Hypercare

    • Analysis of IT Tickets
    • Analysis of IT performance through business feedback loops
    • Engage with business to measure outcomes
    • Onboarding of 3rd party support partners
    • Supporting collateral such as documentation