As mergers and acquisitions are a more frequently observed business transaction in today’s landscape, many cite the financial and strategic benefits. A less frequently cited but often observed benefit can be achieved in the tech department. While not necessarily an intended effect, a transformative business transaction like a merger or acquisition is an opportunity to modernize, to strategically invest in systems and processes, and, lastly, to bring in outside consultants to ensure a seamless transition for all those involved.
M&A Tech Benefit: Modernization
Leverage the best of both worlds or, in this case, both companies by using the most effective systems from each. M&As and other such business transactions are an ideal opportunity for companies to evaluate their technology systems and see what’s working and what’s not. It’s also an opportunity to gain perspective by measuring up to another organization’s technology, systems and processes and gaining a benchmark. Following the merger, the newly formed organization can pick and choose from the existing systems and processes and even bring in new technology when the status quo just won’t cut it. Cloud technology is an ideal platform to bridge the two tech ecosystems into one streamlined environment. Additionally, the cloud will help a newly formed organization modernize with the latest greatest technology behind its operations.
M&A Tech Benefit: Look Outside Your Organization(s)
While businesses undergoing a merger or acquisition can benefit from a little introspection, it also pays to look outside both companies for third party help. Let’s face it, merging two disparate IT environments is quite an undertaking. That’s without even taking into consideration the aggressive timelines that are often associated with such a transition. To ensure that systems are merged as quickly and efficiently as possible, look to a third party, even if just for the short-term while staff is being assembled internally.
M&A Tech Benefit: Pool Resources to Invest in More Robust Systems
Similar to how a merger or acquisition can be used to gain additional market share, combined resources and the scope of the new, larger company will come with greater purchasing power. Tech departments can leverage this purchasing power and take advantage of volume discounts and other purchase incentives. This is an ideal opportunity to invest in robust technologies and systems that can advance the newly formed organization from a tech perspective. It’s an ideal time to evaluate technologies like cloud, ERP, accounting/billing software and CRM that can make the company run more smoothly. As a larger company, there’s less of a need to think small and lead with price considerations which opens up a number of opportunities for advancement.
The Net Effect: How M&A Scenarios Benefit Tech
A merger or acquisition allows a company to think big without the painstaking timeline of gradually scaling. From a tech perspective, this opens up a number of opportunities to modernize. Take full advantage by leveraging the best of both organizations and using the scale of the newly formed company for purchasing power. If cloud is on the roadmap for your company, read more about the specialized advantages we offer companies undergoing a merger or acquisition on our mergers and acquisitions page or contact us today.