In this micro-podcast, learn about the role of a technical lead in a Merger and Acquisition.
Transcript
I’m Johnny Hamilton and my role in mergers and acquisitions is to review the technical infrastructure. There are three practices that I make sure to keep top of mind.
The first is to involve the IT leaders of both companies early on in the process. As the lead of technology, I need to make sure my team evaluates the target’s digital capabilities, applications, company data, and infrastructure. Only then can we estimate the value of the M&A, the effort needed to integrate their systems with ours, and the achievable synergies.
The second best practice is to pay attention to people. Most IT departments, including ours, are already running at full capacity. So we need to ensure that there are enough personnel and resources from our target organization and us to handle the post-merger integration as swiftly as possible. This plan must also include a good change management plan. Our newly acquired workforce will need to learn our policies, processes, and tools while still maintaining and accessing their tribal knowledge of what made their company great in the first place.
The last best practice is to conduct a thorough IT due diligence. Without fully reviewing the target’s IT systems, numerous problems can arise after the deal. There can be upset clients, frustrated employees, and negative impacts on the bottom line. The primary objective of the due diligence process is to avoid disruption in the business
As I lead my IT team through this process, we need to fully address a lot of questions. For example:
- Who will manage employee onboarding into our systems- with things like accounts and access?
- Who will manage the preparation, testing, and migration of all of the target’s systems and tools into our own?
- What’s the budget for doing this work?
When considering all of these factors, IT due diligence is becoming as crucial as financial due diligence. The level of work required to successfully lead a team through an M&A is substantial but well worth it- as it will make the business stronger in the end.
I’m Johnny Hamilton and my role in mergers and acquisitions is to review the technical infrastructure. There are three practices that I make sure to keep top of mind.
The first is to involve the IT leaders of both companies early on in the process. As the lead of technology, I need to make sure my team evaluates the target’s digital capabilities, applications, company data, and infrastructure. Only then can we estimate the value of the M&A, the effort needed to integrate their systems with ours, and the achievable synergies.
The second best practice is to pay attention to people. Most IT departments, including ours, are already running at full capacity. So we need to ensure that there are enough personnel and resources from our target organization and us to handle the post-merger integration as swiftly as possible. This plan must also include a good change management plan. Our newly acquired workforce will need to learn our policies, processes, and tools while still maintaining and accessing their tribal knowledge of what made their company great in the first place.
The last best practice is to conduct a thorough IT due diligence. Without fully reviewing the target’s IT systems, numerous problems can arise after the deal. There can be upset clients, frustrated employees, and negative impacts on the bottom line. The primary objective of the due diligence process is to avoid disruption in the business
As I lead my IT team through this process, we need to fully address a lot of questions. For example:
- Who will manage employee onboarding into our systems- with things like accounts and access?
- Who will manage the preparation, testing, and migration of all of the target’s systems and tools into our own?
- What’s the budget for doing this work?
When considering all of these factors, IT due diligence is becoming as crucial as financial due diligence. The level of work required to successfully lead a team through an M&A is substantial but well worth it- as it will make the business stronger in the end.