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Raising the Stakes of Information: Effective Information Management for Mergers, Acquisitions and Divestitures


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Gartner predicts that through 2010, the vast majority of its clients will be involved in some sort of merger and acquisition (M&A) activity*. The overall financial success of M&A transactions, however, continues to be disappointing, as studies indicate that 50–70 percent of M&A transactions fail to create incremental shareholder value**. The availability of accurate, reliable information is critical to the ultimate effectiveness of a merger, acquisition and divestiture (MAD) transaction.

Deloitte Consulting LLP’s point of view, "Raising the stakes of information," talks about the impact of information management on enterprise value. M&A enterprise value drivers such as revenue growth, cost reduction, asset efficiency and governance, risk and compliance (GRC) are supported by six critical elements of information management, including:

  • Access to all enterprise data
  • Fit with integration architecture
  • Data quality management
  • Data transparency, security and auditability
  • Timely delivery to target users
  • Enterprise-class deployment

To learn more about the guidelines for effective MAD-related activities, download the full report attached below.

 

* Mack, Robert. “IT Handbook on Mergers, Acquisitions and Divestitures,” Gartner Inc., G00130975, December 16, 2005.
** Bloor Research, Nov. 2007; Deloitte 2000 (“Solving the Merger Mystery," "Maximizing the Payoff of Mergers & Acquisitions"), etc. There are numerous studies that support the statement above. “Fewer than 30 percent of merging companies improve shareholder value five years after the acquisitions have been completed — Does M&A Pay?" Robert F. Bruner, Chapter 3, Applied Mergers & Acquisitions, John Wiley & Sons, 2004.

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