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IT in Mergers and Acquisitions
Organizations expand, downsize, sell, merge with, and acquire other
organizations. The task of successfully aligning the IT systems, processes, and
controls of two organizations can be a daunting one for the Executive Board.
To reap benefits, avoid huge expenses and shareholder disappointment, the deal
has to be planned, executed and monitored correctly with all the IT information
communicated to the Board. Adequate synergies in operations and management
of IT function as an enabler of the business operations of the merged entity are
crucial for successful transition and integration.
What We Do
The IT Advisory team offers the following services with respect to IT in M&A
- Advise, assess, and help buying and selling organizations, both pre-deal and
during the deal, to create appropriate IT strategies and synergies that impact
deal objectives
- Assess the client’s or target's IT people, IT processes, systems and
technology, and their ability to meet business and deal objectives, providing
an assessment that focuses on the scalability and robustness of IT systems,
infrastructure and processes
- Perform model reviews of critical deal models to help bring about model
integrity
- Help clients plan the IT aspects of their post-deal integration
- Provide program assurance and project management advice on critical
projects after the deal is completed
- Define and monitor IT benefit realization and key performance indicators
post-deal
Potential benefits
- Better information and assurance on IT capabilities and key financial models
supporting the deal
- Early identification and advice on hidden IT liabilities (e.g., licensing, third party
dependency, intellectual property, ownership, obsolescence of technology, and
control issues) and missed or overstated IT synergies that may affect the deal value
and increase overall risk
- Critical issues in management, governance and operations of IT function as well as
IT skills and people-related issues
- More realistic and measurable post-deal IT strategies, plans, and subsequent
projects.
- More controlled and measurable realization of the IT components of post-deal
synergies.
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For further details contact us
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