Technology M&A Trends and Insights

How Mergers and Acquisitions are Shaping the Tech Industry

As a Technology M&A team, our primary focus is identifying risks and opportunities for synergy in a Target company's technology capabilities, processes, applications, and infrastructure before an acquisition. We tackle diverse problems of varying complexity, ranging from moderate to substantial. Our team provides strategic guidance on IT infrastructure and security concerning IT integration efforts, supporting all growth opportunities such as mergers, acquisitions, divestitures, joint ventures (JVs), and minority investments.

Our role involves working closely with senior executives, corporate development teams, integration management teams (IMT), acquired company representatives, and internal cross-functional IT teams. We evaluate potential target companies and develop and implement IT integration plans. Our responsibilities as M&A IT include recommending the technological impact of mergers, acquisitions, and divestitures on an organization's profitability. We conduct appropriate due diligence to ensure the reliability of the information provided by potential acquisition targets and advise executives to develop functional strategies on significant matters.

IT Due Diligence:
  • Contribute to the IT due diligence process for all growth opportunities by analyzing and assessing potential target companies for IT infrastructure and security/cybersecurity risks.
  • Assist in creating an IT integration cost model for IT infrastructure and security based on the proposed deal structure and integration hypothesis.
  • Build a theoretical understanding of how the target company's IT infrastructure would be integrated based on the planned ideal structure and integration hypothesis.
  • Create a standard risk-based approach/methodology for IT infrastructure and security that can be utilized to evaluate potential target companies.

Planning and Executing IT Integration:
  • Facilitate and support IT infrastructure and IT security/cybersecurity assessments.
  • Work with IT infrastructure and IT security teams to gain an initial understanding of potential IT integration gaps, barriers, risks, and challenges.
  • Collaborate with IT infrastructure and security teams to build IT integration plans (short, mid, and long-term) aligning with M&A objectives.
  • Lead everyday implementation of the IT integration process, which includes training cross-functional IT teams, handling weekly IT integration team meets, and actively resolving problems.
  • Proactively identify and mitigate project or downstream risks by working closely with IMT, business, and IT teams to identify solutions that address business or technical issues that arise during execution.
  • Ensure effective communications with all stakeholders during the planning and execution phases.
  • Support remediation efforts for risks (IOPs/P9s), gaps, or issues identified during vendor cybersecurity risk assessments that exceed the company's risk tolerance.
  • Identify and mitigate risks associated with cloud technology through partnerships reinforced by Cyber Security and Disaster Recovery.
  • Develop IT M&A governance processes for cloud and software-defined infrastructure, including source code management and development methods.

IT Integration Process:
  • Contribute to improving IT integration best practices and playbook for achieving strategic and operational results of M&A efforts by sharing insights, modifications, and other valuable information.
  • Act as a change agent by effectively communicating and inspiring key stakeholders from companies and target companies on the value and intent of M&A.
  • Lead the IT integration steering committee and governance process, enabling senior executives and IT stakeholders to review the post-acquisition status, provide inputs on IT integration goals and objectives, and approve resource allocation.

Integration Results:
  • Record the key takeaways from the IT integration closing activities related to IT infrastructure and security.
  • Perform an analysis of IT integration metrics for IT infrastructure and security, comparing the actual outcomes with the planned goals.

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