Careful and comprehensive IT planning is vital for a successful M&A. Here is how the IT element of an M&A event increases value, minimizes costs, and creates synergies for all involved.

1. The
IT
Playbook
for
Seamless
M&A
Events

2. The
Role
of
IT
in
M&A
Events 2
Sound
Familiar?
After
an
M&A
event…

3. The
Role
of
IT
in
M&A
Events 3
Sound
Familiar?
Promised
IT
synergies have
not
materialized
After
an
M&A
event…

4. The
Role
of
IT
in
M&A
Events 4
Sound
Familiar?
Promised
IT
synergies have
not
materialized
Expert
IT
resources have
left,
creating
risk
and
disruptions
After
an
M&A
event…

5. The
Role
of
IT
in
M&A
Events 5
Sound
Familiar?
Promised
IT
synergies have
not
materialized
Expert
IT
resources have
left,
creating
risk
and
disruptions
Software
licensing
issues
lead
to
unmet
business
solution
needs
After
an
M&A
event…

6. The
Role
of
IT
in
M&A
Events 6
Sound
Familiar?
Promised
IT
synergies have
not
materialized
Expert
IT
resources have
left,
creating
risk
and
disruptions
Software
licensing
issues
lead
to
unmet
business
solution
needs
Integration of
enterprise
systems
has
failed,
putting
business
processes
at
risk
After
an
M&A
event…

7. The
Role
of
IT
in
M&A
Events 7
Sound
Familiar?
Promised
IT
synergies have
not
materialized
Expert
IT
resources have
left,
creating
risk
and
disruptions
Software
licensing
issues
lead
to
unmet
business
solution
needs
Integration of
enterprise
systems
has
failed,
putting
business
processes
at
risk
Understanding
of
post-­‐transition
IT support
and
operations
expectations
have
been
unclear,
creating
risk
of
disruptions
After
an
M&A
event…

8. The
Role
of
IT
in
M&A
Events 8
Why
IT
Planning
Is
Vital
to
a
Successful
M&A

9. The
Role
of
IT
in
M&A
Events 9
The
Value
of
IT
in
M&As
The
level
of
value
in
mergers,
acquisitions
and
divestitures
is
primarily
driven
by
a
successful IT
transition.

10. The
Role
of
IT
in
M&A
Events 10
The
Value
of
IT
in
M&As:
So
What?
By
beginning
the
M&A
process
with
a
detailed
IT
execution
plan,
transparency is
gained,
which
can
be
leveraged
during
negotiations
and
lead
to
substantial
transaction
cost
savings.

11. The
Role
of
IT
in
M&A
Events 11
The
Cost
of
IT
in
M&As
IT
is
typically
the
largest
cost
element
in
an
M&A
event
– and
can
be
the
single
biggest
enabler
of
synergies.

12. The
Role
of
IT
in
M&A
Events 12
The
Cost
of
IT
in
M&As:
So
What?
Proper
IT
planning
mitigates
M&A
risk.
Since
IT
cost
is
the
highest
cost
within
M&A
events,
first
time
quality
should
be
achieved
to
avoid
the
substantial
and
damaging
cost
of
failure.

13. The
Role
of
IT
in
M&A
Events 13
IT
Synergies
in
M&As
Getting
IT
involved
early
and
often
throughout
the
M&A
lifecycle
can
be
critical
for
effective
execution
and
realization
of
benefits
from
a
merger,
acquisition,
or
divestiture.

14. The
Role
of
IT
in
M&A
Events 14
IT
Synergies
in
M&As:
So
What?
The
realization
of
synergies
and
the
End-­‐State
Blueprint
avoids
undelivered
promises
and
delayed
transitions.
Additionally,
a
proactively
negotiated
TSA
can
accelerate
the
negotiation
process
and
create
a
smoother
transition.

15. The
Role
of
IT
in
M&A
Events 15
How
to
Maximize
IT
Outcomes
During
an
M&A
Event

16. The
Role
of
IT
in
M&A
Events 16
The
M&A
Lifecycle
The
6-­‐stage
M&A
Lifecycle,
when
properly
executed,
is
a
game
changer
for
reducing
the
risk
of
failure
and
unforeseen
costs
from
your
M&A
event.
Screening Initial
Evaluation
Detailed
Evaluation
Operational
ReviewClosing Execution

17. The
Role
of
IT
in
M&A
Events 17
Screening Initial
Evaluation
Detailed
Evaluation
Operational
ReviewClosing Execution
Stage
1:
Screening

18. The
Role
of
IT
in
M&A
Events 18
Screening Initial
Evaluation
Detailed
Evaluation
Operational
ReviewClosing Execution
Stage
1:
Screening
Events Approach Deliverables
IT
Advisory Provide
IT
advice
to
the
core
M&A
team
M&A
Readiness
Assessment

19. The
Role
of
IT
in
M&A
Events 19
Stage
2:
Initial
Evaluation
Screening Initial
Evaluation
Detailed
Evaluation
Operational
ReviewClosing Execution

20. The
Role
of
IT
in
M&A
Events 20
Stage
2:
Initial
Evaluation
Screening Initial
Evaluation
Detailed
Evaluation
Operational
ReviewClosing Execution
Events Approach Deliverables
IT
Cost IT
Subject
Matter
Expert
(SME)
works
with
M&A
team
to
prepare
for
event
• IT
Cost
Analysis
• Due
Diligence
Preparation
Plan
• Synergies
Plan
• Risk
Analysis

21. The
Role
of
IT
in
M&A
Events 21
Milestone
I:
Letter
of
Intent
Signed
Screening Initial
Evaluation
Detailed
Evaluation
Operational
ReviewClosing Execution
MILESTONE
I
Letter
of
Intent
Signed
Period
of
exclusivity;
due
diligence
initiated.

22. The
Role
of
IT
in
M&A
Events 22
Stage
3:
Detailed
Evaluation
Screening Initial
Evaluation
Detailed
Evaluation
Operational
ReviewClosing Execution

23. The
Role
of
IT
in
M&A
Events 23
Stage
3:
Detailed
Evaluation
Screening Initial
Evaluation
Detailed
Evaluation
Operational
ReviewClosing Execution
Events Approach Deliverables
IT
Due
Diligence Perform
detailed
Due
Diligence
on
all
aspects
of
IT
within
the
entity,
and
the
IT
organization
• Due
Diligence
Worksheets
• Transition
Planning
• Staff
Retention
Plan
• Current-­‐ &
Future-­‐
State
Blueprint

24. The
Role
of
IT
in
M&A
Events 24
Pre-­‐Close
Findings
By
Stage
3
your
organization
will
have
addressed
the
following
aspects:
Screening Initial
Evaluation
Detailed
Evaluation
Operational
ReviewClosing Execution

25. The
Role
of
IT
in
M&A
Events 25
Pre-­‐Close
Findings
Risks:
Understand
and
expose
potential
risks
that
may
threaten
financial
and
operational
success;
use
metrics
to
monitor
project
risks
By
Stage
3
your
organization
will
have
addressed
the
following
aspects:
Screening Initial
Evaluation
Detailed
Evaluation
Operational
ReviewClosing Execution

26. The
Role
of
IT
in
M&A
Events 26
Pre-­‐Close
Findings
Risks:
Understand
and
expose
potential
risks
that
may
threaten
financial
and
operational
success;
use
metrics
to
monitor
project
risks
Gap
Analysis:
Understand
the
magnitude
of
the
integration
or
separation
effort
By
Stage
3
your
organization
will
have
addressed
the
following
aspects:
Screening Initial
Evaluation
Detailed
Evaluation
Operational
ReviewClosing Execution

27. The
Role
of
IT
in
M&A
Events 27
Pre-­‐Close
Findings
Risks:
Understand
and
expose
potential
risks
that
may
threaten
financial
and
operational
success;
use
metrics
to
monitor
project
risks
Gap
Analysis:
Understand
the
magnitude
of
the
integration
or
separation
effort
Synergies:
Determine
opportunities
for
synergy
and
set
goals
By
Stage
3
your
organization
will
have
addressed
the
following
aspects:
Screening Initial
Evaluation
Detailed
Evaluation
Operational
ReviewClosing Execution

28. The
Role
of
IT
in
M&A
Events 28
Pre-­‐Close
Findings
Risks:
Understand
and
expose
potential
risks
that
may
threaten
financial
and
operational
success;
use
metrics
to
monitor
project
risks
Gap
Analysis:
Understand
the
magnitude
of
the
integration
or
separation
effort
Synergies:
Determine
opportunities
for
synergy
and
set
goals
Due
Diligence:
Understand
target
assets,
liabilities,
and
capabilities
through
comprehensive
evaluations
By
Stage
3
your
organization
will
have
addressed
the
following
aspects:
Screening Initial
Evaluation
Detailed
Evaluation
Operational
ReviewClosing Execution

29. The
Role
of
IT
in
M&A
Events 29
Pre-­‐Close
Findings
Risks:
Understand
and
expose
potential
risks
that
may
threaten
financial
and
operational
success;
use
metrics
to
monitor
project
risks
Gap
Analysis:
Understand
the
magnitude
of
the
integration
or
separation
effort
Synergies:
Determine
opportunities
for
synergy
and
set
goals
Due
Diligence:
Understand
target
assets,
liabilities,
and
capabilities
through
comprehensive
evaluations
Integration
or
Separation
Planning:
Day
1
and
Future-­‐State
Blueprinting;
validate
model(s)
to
be
used
By
Stage
3
your
organization
will
have
addressed
the
following
aspects:
Screening Initial
Evaluation
Detailed
Evaluation
Operational
ReviewClosing Execution

30. The
Role
of
IT
in
M&A
Events 30
Milestone
II:
Deal
Signed
&
Announced
Screening Initial
Evaluation
Detailed
Evaluation
Operational
ReviewClosing Execution
MILESTONE
II
(DAY
0)
Deal
Signed
&
Announced
Obtain
regulatory
&
shareholder
approvals;
integration/separation
planning
initiated.

31. The
Role
of
IT
in
M&A
Events 31
Stage
4:
Closing
Screening Initial
Evaluation
Detailed
Evaluation
Operational
ReviewClosing Execution

32. The
Role
of
IT
in
M&A
Events 32
Stage
4:
Closing
Screening Initial
Evaluation
Detailed
Evaluation
Operational
ReviewClosing Execution
Events Approach Deliverables
Due
Diligence
Finalization
Transition
Services
Agreement
Refine
the
Due
Diligence
findings,
TSA
terms,
transition
plans
for
closing
• Transition
Services
Agreement
(TSA)
• Detailed
Transition
Plan

33. The
Role
of
IT
in
M&A
Events 33
Screening Initial
Evaluation
Detailed
Evaluation
Operational
ReviewClosing Execution
Milestone
III:
Deal
Closed
MILESTONE
III
(DAY
1)
Deal
Closed
Financial
close
of
the
transaction,
integration/separation
execution.

34. The
Role
of
IT
in
M&A
Events 34
Stage
5:
Execution
Screening Initial
Evaluation
Detailed
Evaluation
Operational
ReviewClosing Execution

35. The
Role
of
IT
in
M&A
Events 35
Stage
5:
Execution
Screening Initial
Evaluation
Detailed
Evaluation
Operational
ReviewClosing Execution
Events Approach Deliverables
Project
Management
IT
Blueprint
Design
Execution
IT
TSA
Execution
&
Exit
Management
Utilize
project
management
and
change
management
to
drive
a
successful
transition
• Transition
Status
Reports
• TSA
Execution
and
Exit
Management
Report
• IT
Blueprint
Design
Execution
Report

36. The
Role
of
IT
in
M&A
Events 36
Stage
6:
Operational
Review
Screening Initial
Evaluation
Detailed
Evaluation
Operational
ReviewClosing Execution

37. The
Role
of
IT
in
M&A
Events 37
Stage
6:
Operational
Review
Screening Initial
Evaluation
Detailed
Evaluation
Operational
ReviewClosing Execution
Events Approach Deliverables
Synergies Pursue
synergies
early,
with
an
expectation
of
synergy
realization
within
the
first
operational
phase
(first
year)
• Synergy
Tracking
&
Management
Report

38. The
Role
of
IT
in
M&A
Events 38
How
to
Leverage
the
IT
Organization
Engage
trusted
senior
IT
leader during
screening
activities
to
provide
IT
Advisory
to
the
core
M&A
Team

39. The
Role
of
IT
in
M&A
Events 39
How
to
Leverage
the
IT
Organization
Engage
trusted
senior
IT
leader during
screening
activities
to
provide
IT
Advisory
to
the
core
M&A
Team
Assign
a
senior
IT
leader
(and
IT
infrastructure
leader)
to
the
M&A
Event
Team
during
the
Initial
Evaluation,
Stage
2

40. The
Role
of
IT
in
M&A
Events 40
Outcomes

41. The
Role
of
IT
in
M&A
Events 41
How
M&A
Events
Benefit
from
Active
IT
Support
Transition
IT
On-­‐Time
&
On-­‐Budget
Execute
Successfully
from
Day
One
Execute
TSA
Effectively
Exit
TSA
Early
Achieve
Synergies
Realize
Future
State
Blueprint

42. The
Role
of
IT
in
M&A
Events 42
Acknowledgements
If
you
are
a
novice
in
IT
M&A,
we
recommend
the
ultimate
reference
book:
M&A
Information
Technology
Best
Practices
by
Janice
M.
Roehl-­‐Anderson
Accenture
ARMA
International
CIO
Journal
Crowe
Horwath
Deloitte
Forrester
Gartner
McKinsey
PWC

43. The
Role
of
IT
in
M&A
Events 43
Wes
Hopmans:
linkedin.com/in/weshopmans/
James
Healey:
linkedin.com/in/jamescundarihealey/
Abraic
helps
improve
business
processes
&
outcomes
for
IT
organizations.

44. The
Role
of
IT
in
M&A
Events 44
Learn
more:
abraic.com/blog
Abraic
helps
improve
business
processes
&
outcomes
for
IT
organizations.