Mergers and Acquisitions: Why They Fail

|||Mergers and Acquisitions: Why They Fail

Mergers and acquisitions seem to be gaining a boom as we enter 2015 and – as this may seem as simple as combining a few computer systems – integrating servers, merging department functions, using the absolute size to force supply prices down, and eventually the merged giant should be more profitable than if it were in separate pieces, where deal makers theoretically see it as 1+1 > 2.

The stats make it appear very profitable, but there are always two sides of a picture and seeing/analyzing the big picture (both sides) before proceeding is what will make a business prosper the way it is being portrayed. If handled improperly, mergers and acquisitions can go very awry. The enthusiasms that drive mergers and acquisitions can be flawed, and efficiencies from economies of scale may prove mysterious. Despite having great benefits, these drawbacks need to be addressed. Hence, partnering with the right provider before making a deal is of the utmost importance.

Taking into consideration mergers and acquisitions of companies having more than 100 employees, it is a challenging task to accomplish, with data security remaining top priority. Combining so many computers and assuring proper server integration isn’t as easy as it seems if the project is being locally managed rather than in the cloud because it isn’t desktops or servers alone that need to be merged/integrated. In terms of software licensing, there are a lot more considerations, including data storage, data securitydesktops and servers – and don’t forget the support service – all required on a single platform. The timing of a merger is also of great importance, and getting the deal done and completely streamlined within the minimum timespan is the biggest roadblock companies face, which can ultimately lead to disruption in everyday business workings, encouraging worried customers to flee. This momentous loss of revenue is one big reason why so many worthy mergers fail to create required value for their shareholders.

Solution: dinCloud – “A One Stop Shop”

Organizations need to move to the cloud in order to speed up their potential mergers, and they can earn peace of mind knowing they have all of the above aspects catered for when they partner with providers like dinCloud. Organizations can speed up their processes by gaining control of their infrastructure, managing it all centrally and spinning up resources immediately, making your acquisition integration look simple and stress-free.

If a merger goes well, the new organization should appreciate in value as stakeholders and investors expect synergies to actualize, increasing revenue and creating cost savings for the newly formed organization/entity, and dinCloud is the key to making all this happen.

Contact our sales team or your partner for more guidance, and dinCloud will speed you through your M&A transaction so that you can relax.

2018-10-10T14:34:15+00:00