Mergers and Acquisitions: Changing Your IT Strategy to Meet your Growing Needs
Mergers and acquisitions (M&A) are exciting ways to grow your business’ reach, scope and profit margins. It’s a very common undertaking in the business world, with Sprint and T Mobile, AT&T and Time Warner, and Disney and 21st Century Fox being just a few companies who have merged to become forces to be reckoned with in their industries.
When your business merges with another, it’s a great chance for diversifying, corporate growth and gaining the competitive edge. These undertakings aren’t without special considerations, though, such as corporate restructuring, rebranding, and changing your IT strategy to meet your growing needs while trying to keep both businesses profitable and operational.
Changing Your It Strategy in Advance of your Merger or Acquisition
An astonishing 60% of merger and acquisitions have ties to the IT industry, and yet per a McKinsey study, many of them overlook potential issues in their IT strategies. Your IT solutions are an important part of the success of your mergers and acquisitions. Without proper planning in advance, you will run into problems such as:
- Combining data
- Technology culture
- Application usage
- Software uniformity
- Incompatible devices and other technology
Having a consultation from a professional IT company is an important step when you are planning your business’ next big, exciting chapter: merging with another company.
Iconic IT’s Top Five Tips for Changing Your IT Strategy During Your Merger or Acquisition
Iconic IT merged four top-rated IT companies under one brand in July of 2019. We were able to be well-prepared in advance, and combining our IT was vitally important both before and during the merger. Following the five tips below ensured that Iconic IT’s transition was smooth, both culturally and structurally.
1. Align your Company Tech Culture and Objectives
Both companies need to be on the same page regarding growth, technological systems, and innovation. They need to agree on integration processes that combine the IT skills and resources of both companies. Anything less than agreement here will cause inefficiencies, incompatible technology, and tech practices and needs that are at odds with each other. Aligning your tech culture and objectives keeps your new organization relevant, productive, and competitive.
If your companies both provide work-related devices and equipment, your new brand may be more efficient if you agree on a BYOD workplace. Employees will continue to use the equipment they are comfortable with, eliminating IT culture shock and keeping productivity at its maximum level during the transition. Additionally, a BYOD strategy will save money since it eliminates the need to purchase uniform hardware across the board.
Changing Your It Strategy for M&A: Make sure both companies share their unique IT needs and solutions with each other.
2. Specify Your Technology Solutions and Applications
Both companies will be bringing their own vendor contracts, licenses and software into the merger. You will need to establish new ownerships of licenses, potentially negotiating new third-party vendor contracts, and choosing what will need to be upgraded or migrated to the cloud for ease of access.
Make sure you share your company’s:
- Messaging platforms
- Email clients
- VoIP platform
- A/V systems
- Software platforms
Changing Your IT Strategy for M&A: Compare your tech solutions to see how you can combine them to suit your newly branded business.
3. Establish a Timeline
The key to successfully integrating IT solutions for both companies is to sit down and physically create a workable timeline. This establishes priorities in your changing IT strategies and gives you a clear vision of your end goals. Having a timeline will clearly outline what needs to be done, and where the tasks stands in importance to other IT related tasks during your M&A. This also allows you to check off each metric or milestone you meet to track your progress along the way.
Both parties need to reach an understanding regarding the risks of merging their technologies and existing networks. You should consult with an MSP to help you weigh the potential costs and pitfalls against the benefits of merging your current IT solutions and provide you useful strategies to minimize your risks when changing your IT strategy.
Changing Your It Strategy for M&A: Create a realistic timeline to track your priorities when merging IT solutions.
4. Data Integration
You aren’t just merging company names; you are also merging all the data your companies have amassed over the years. This can be tricky if both companies use different IT solutions, applications, and infrastructure. Some data may need to be converted to be transferred into a joint database. Vendors may require a consultation fee to merge the data, so make sure to incorporate this into your starting IT budget.
Data integration prevents files and other data from being lost in transition. It organizes the data of all applications and services and streamlines access to new, updated databases. Data integration must pull all pertinent information from every storage site, whether it is in the cloud or on-site.
Changing Your IT Strategy for M&A: Hire a professional to merge all data from both companies into one shared database.
5. Internet Connections
Your internet is your backbone. Without it, you can’t communicate, process information, or operate efficiently. One of your biggest decisions to make will be finding an internet connection that can stand up to your combined needs. Your connectivity must be reliable and sufficiently powerful to stand up to the increased data load that will be crossing it daily. Which internet provider is best for your new business?
The decisions to be made here are a little more complex than you think. Should both companies retain their own network, or should they be merged? Are cloud solutions better able to stand up to your combined data storage needs? Would it make more sense to build a new, scalable network altogether?
When you are deciding on your internet solutions, don’t forget to consider your remote workforce and their need to access the shared resources, if applicable.
Changing Your IT Strategy for M&A: Don’t forget that your making your choice for your merged internet connections and providers includes many factors.
Let Iconic IT Guide your IT Strategy Change During Your Acquisitions and Mergers
Iconic IT doesn’t just understand the need to change IT strategy during an M&A; we have experienced it ourselves.
Contact us today for a free consultation and analysis of your IT needs. Iconic IT is ready to guide you through a smooth transition while merging your businesses’ IT solutions, and to keep your new business IT systems up and running efficiently afterwards.