Executive Briefs

Executive Brief - Accelerating M&A Momentum in the Digital Age

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Executive Brief – Accelerating M&A Momentum | 1 Mergers and acquisitions (M&A) are only growing in frequency and importance. In the first half of 2018, companies concluded a stunning $2.5 trillion in M&A deals 1 , and the pace in 2019 is not far behind. Through M&A transactions, companies gain access to new products, new markets, new R&D teams and cutting- edge (often patented) technology. In a highly competitive global economy, M&A deals are strategic moves that many companies cannot afford to ignore. The most successful M&A investments result in a new organization that works effectively as a cohesive whole from Day One. But achieving that seamless unification is no easy task. By law, companies are not allowed much opportunity to coordinate their activities or share detailed business information before an M&A deal closes. Their IT teams are not allowed to study one another's IT systems, product plans or customer data. Without those critical details, it's difficult to develop a sure-fire Day One plan for combining IT systems along with companies themselves. Instead, on Day One, the IT organizations must spring into action, quickly connecting essential business applications and merging essential operational data to help the transformed organization work as effectively as possible. How should IT go about this? At Boomi, we are experts on integration. To help guide your M&A efforts, we've assembled seven tips for managing the integration of IT systems and data to support any merger or acquisition. By following this guidance, you will maintain business momentum, set the new entity up for the smoothest and fastest transition, and help ensure the merger delivers on its promise to boost revenues and create a more competitive organization. Focus on the synergies that drove the deal Every M&A deal is driven by the desire for some kind of synergy – creating a newly forged whole that's greater than the sum of its parts. For some companies, the most important synergy will involve adding customers. For others, it will be adding product lines. And for others still, it will be taking advantage of a powerhouse R&D department or a unique supply chain. Keep the goal of the M&A deal in mind when you're integrating the companies' infrastructures. By focusing on the reasons behind the M&A deal, you'll find it easier to prioritize the work to be done. Concentrate on what's essential, rather than trying to undertake a comprehensive rationalization of all applications across both companies. To drive sales, put customers and customer data first Synergies vary, but in almost all M&A deals, it's critical for the combined companies to be able to sell effectively starting on Day One. That means that the sales representatives in both companies need to be able to see all account data, so they can sell effectively and consistently as a single, well-coordinated sales organization. EXECUTIVE BRIEF – ACCELER ATING M& A MOMENTUM IN THE DIGITAL AGE Accelerating M&A Momentum in the Digital Age 7 tips for managing the integration of IT systems and data to ensure the speed and efficiency of business mergers 1 https://www.nytimes.com/2018/07/03/business/dealbook/ mergers-record-levels.html

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