The Importance of Integrating Tech Platforms After a Merger
One of the key objectives of any M&A strategic plan should be to integrate data and technology platforms between the merging organizations. “If you’re not able to get fully integrated and engage in the data sharing and knowledge sharing that this enables, you’re not going to achieve the synergies that are the ultimate value companies are looking for in an M&A,” Varin says. “Merging companies need to make sure there is good collaboration and that they are able to share ideas and data across the new organization.”
Cloud computing solutions have become powerful tools to achieve this objective. Platforms such as Microsoft Azure, Amazon Web Services and Google Cloud make it easier to centralize information that is involved in a merger or acquisition, Bock says. This makes the cloud a more attractive option in many cases than standardizing on an on-premises solution. “Cloud platforms have taken center stage because they’re much more agile and flexible,” he says.
Further, cloud platforms enable employees of a merged company to access enterprise data from anywhere they have an internet connection, which supports remote and hybrid work models that have become widely adopted in recent years.
READ MORE: Check out why banks need to modernize their applications after a merger.
Security Remains a Major Concern for M&A Activity
A focus on security is essential to successful M&A integration. Bock explains that even in industries that may not seem to make cybersecurity a priority, such as farming, data breaches can represent a massive problem. This has made security a top concern as IT teams look to integrate systems.
As organizations consider M&A activity, they are paying special attention to issues such as risk assessments, patch management, multifactor authentication, single sign-on and network segmentation. A security audit is a critical step as companies engage in mergers and acquisitions, Varin says, so IT teams can identify security vulnerabilities before they begin integration efforts.
Ultimately, organizations that plan their transitions and execute them effectively will give themselves a better chance to achieve M&A success.