Can IT Make or Break a Corporate Acquisition?

by David N. Rasmussen

When companies get the urge to merge, two things have to happen: due diligence on the target company and integration of two distinct organizations. It would seem like a no-brainer to involve the acquiring company's IT organization in both activities -- after all, it's IT that will have to support the operational systems and processes of the newly merged enterprise. Yet IT is frequently shut out of the due diligence process, primarily because of the need for secrecy before a merger is publicly announced. And once the deal is consummated, the acquirer's IT organization is tasked with integrating the two IT departments quickly, usually with little notice or advance planning. Not surprisingly, it's often at this point that the acquiring IT group uncovers daunting integration challenges that should have been identified before the deal went through.

It doesn't have to be this way. In this issue, we'll discuss how IT can add value to an M&A and how CIOs can increase their chances of being invited to the negotiating table. You'll hear about three distinct M&Amp;A types and how they can determine the extent of IT's involvement before the merger and what IT will be asked to do afterwards. A former CIO and veteran of 45 company acquisitions will tell you how to spot potentially costly M&A pitfalls and what to do about them once you do. And you'll learn how savvy IT departments can exploit the opportunity a merger presents to reengineer technology acquisition, deployment, and support. Tune in, before the value of your next M&A goes MIA!