With big tech now ubiquitous yet ever more complex, business leaders are eyeing smaller companies and startup vendors as key to their business strategies. As a result, organizations in virtually every industry are now considering mergers and acquisitions (M&A) an essential component of their company growth game plan.
M&A will affect not only the parent company but all those involved. Therefore, executives must anticipate and work out how their IT strategies will affect acquired or acquiring companies. In addition, risk and compliance challenges may entail unplanned costs during an M&A event as organizations contend with combining complicated infrastructures.
Meeting the challenges
In merging businesses, skillful management of all aspects, including technology and resources, will be required if you want to avoid cost overruns and the risk of failure.
Enterprise networks must manage more software, Cloud, and professional service vendors. And, with a globally distributed workforce and the complexities of the Cloud, M&A activity only adds to the multiple issues with which parent and acquired companies must deal. However, with new ways to scale their organizations, business leaders can
Why some M&A deals fail:
- Lack of a legitimate motive for the acquisition
- Selecting an inappropriate company
- Overestimating synergies
- External challenges
- Failing to maintain the trust of crucial stakeholders
- Inadequate intelligence and preparation
- Inability to integrate systems
Manage compliance and risk
Complete visibility into all aspects of your organization and any you seek to acquire is requisite for M&A success. In addition, CFOs can invest their IT budget into solutions that help mitigate risk, ultimately gaining a competitive advantage. For example, with the insights provided by an integrated Dynamics 365 solution, organizations can decrease legal and other enterprise risks that come with a demanding regulatory environment.
IT performance often determines the success or failure of the CFO role during M&A events. Therefore IT is crucial to merging the complicated infrastructure of the company’s networks of devices, servers, and resources. With
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By Logan Consulting,