How Technology Can Provide Positive Impact During Mergers and Acquisitions (M&A)

Most businesses have a hyper-focus on either (or both) organic growth or inorganic growth. Specifically regarding inorganic growth, the impact of a merger or acquisition on a company and its employees can have some challenges, but having the foresight to involve your IT Provider during due diligence (if possible) will  place your business in the best position once the deal is signed.

Identifying the difference between available technology and compatible technology can have a dynamic impact on the success of any M&A deal. Whether we are talking about fully integrating a brand or leaving the brand as a subsidiary, the goal should ultimately be to transform the existing technology into a scalable revenue generating machine that will positively impact every department.   The evaluation of either sunsetting or adopting legacy systems and programs will be a vital strategic initiative involving key internal stakeholders as well as your trusted IT provider. In addition, M&A often serves as a great opportunity to upgrade existing systems as a needed integration into a legacy system or program may naturally spur a migration in a more efficient system or program.  While there are many factors to consider in determining a move-forward strategy when integrating 2 or more companies, the opportunity to start the discussion of either integrating or upgrading your technology footprint is optimal during a merger or acquisition.

An added component of concern is the state of your cybersecurity once you merge/acquire said business. A thorough cybersecurity assessment will be necessary to mitigate the risk of exposure. There is no question that when a business publicizes an M&A transaction, more attention in the media and by cyber criminals will be on that company. If not handled properly, cybersecurity vulnerabilities could become a major concern. Ensuring that your combined companies are protected from cyber threats is just as vital as ensuring that your EBITDA targets are met. In these situations, involving your managed service provider is both crucial and necessary to accomplishing all future-state IT goals.

Below are a few summarized takeaways to consider:

  • Analyze applicable systems and programs for potential integration or upgrade
  • Enlist your IT partner, NexusTek, during the planning and integration period
  • Take this opportunity to consider modernizing your technology suite
  • Complete a cybersecurity assessment and take the necessary measures to secure your network to mitigate cybersecurity vulnerabilities
  • Ensure that your critical data is backed up and there is a business continuity plan in place in case of a natural disaster or cyberattack

While it is important to focus on business continuity when combining technology infrastructures, always keep the efficiency and productivity of your daily business operations front of mind.

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