During the throws of a typical company merger there are (unsurprisingly) a large amount of board-level C-level (e.g. CEO, CIO etc.) executives called into attendance to ponder meeting minutes, eat the chocolate shortbread squares and drink copious amounts of coffee, water and various Taurine-based energy drinks.
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There are (unsurprisingly again) not many developer and operations team members called into these meetings.
Tony Qui, partner in Ernst & Young’s operational transaction services division has suggested this week that IT and operational considerations are not always given adequate attention in planning and execution phases of mergers and acquisitions in his speech at the SAP Sapphire Now and TechEd conference.
Qui has referenced the firm’s recent survey of 220 C-suite and board level executives:
• 37% of the respondents felt operation and IT issues presented the most significant challenges post-transaction.
• 47% of those surveyed said that more detailed IT due diligence could have prevented value erosion.
“Our findings clearly show that technology needs to have a seat at the M&A table in order to deliver real value. Our survey found that only 50% of respondents said they typically involve IT in the transaction process – compared to nearly 80% who involved the finance department,” said Qui.
He continued, “The due diligence that must be conducted should focus on improving earning opportunities, and identifying key deal breakers to avoid unplanned investment. It’s about connecting IT issues to the strategic motivation for the deal. An integration blueprint and roadmap can be built and set to realistic, deliverable timeframes. Giving IT a seat at the table from the start of the process helps a deal move from integration to innovation.”