Don’t Forget IT: Eight Simple Ideas to Help Reduce IT-Related M&A Risk
It is widely known that most mergers fail to deliver their expected value. An important factor that is often overlooked during a merger is the early involvement of information technology (IT). A recent Deloitte Research survey, Strategic Acquisitions Amid Business Uncertainty, shows a clear correlation between Day One effectiveness and IT involvement during due diligence and planning. It also shows a strong correlation between IT due diligence and the effective capture of IT-related synergies.
Yet according to the survey, fewer than 30 percent of companies get IT involved in preclose planning. This lack of early involvement from IT can have serious consequences, including:
- Losing millions in unexpected integration/divestiture costs
- Long delays in capturing benefits
- Temporary IT solutions that are expensive, risky and wasteful
Download the attached to learn more about eight simple ideas that can help companies avoid ineffective deals resulting from delayed IT involvement and reduce merger and acquisition risk.
Article: The role of information technology in mergers and acquisitions