BrandPost: Driving M&A Integration to Completion
Merger and acquisition (M&A) activity across the world has hit a 17-year-record high in the first quarter of 2018, according to a report by research firm Mergermarket. That growth is expected to increase, as corporate tax reductions in the United States fuel a number of growth investments, including M&A.
Common deal structures (i.e., acquisition of like entities, carve-out and integration of like operating units) come with the expectations of integrating the acquired entity(ies) into the acquiring company’s operations. These deals create challenges for the IT organization, which must simultaneously “keep the lights on” in the legacy organization while integrating the acquired organization and evolving the integrated IT organization to support the expanded entity. These efforts can take a significant amount of time, so companies can be tempted to conclude formal integration activities before the “long tail” of IT integration is complete.