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The role of IT in mergers and acquisitions

22 August, 2023
The role of IT in mergers and acquisitions

The business world is constantly changing and mergers and acquisitions play a key role in the search for growth and competitiveness. However, the success of a transaction depends on a variety of factors, including the efficient incorporation of the Information Technology (IT) systems of the companies involved. When well framed in the context of a merger and acquisition process, it becomes a powerful integration tool, increasing the long-term efficiency of an M&A transaction.

For this, some points are fundamental in this process.

What are the key points of IT in business transactions?

The business world is constantly changing and mergers and acquisitions play a key role in the search for growth and competitiveness. However, the success of a transaction depends on a variety of factors, including the efficient incorporation of the Information Technology (IT) systems of the companies involved. When well framed in the context of a merger and acquisition process, it becomes a powerful integration tool, increasing the long-term efficiency of an M&A transaction.

For this, some points are fundamental in this process.

What are the key points of IT in business transactions?

asset management

In IT, asset management involves managing all aspects of technology, whether physical or virtual. This includes taking steps to avoid inefficient investments and contributing to a culture of innovation by strengthening strategies.

In addition, the focus is on ensuring the efficiency of the systems, optimizing the use of hardware and software, offering agility in service and problem resolution. It is this management that determines the need for investments and adjustment of resources.

Information exchange

In an organization, the exchange of information is the key to the development of all operations. It is through this exchange that the processes flow according to the identified needs, thus, faster responses are elaborated, preserving the workflow and even creating new ones that met the new needs.

Systems integration

Among all the points mentioned, systems integration is the main aspect of IT responsibility, which must be planned by the manager who will define the tools kept, replaced and which ones should be acquired, experiencing a new scope of the system.

This covers important aspects, such as costs, finances, strategies and market positioning, encompassing points related to technology and all areas of the organization that receive support from this sector.

It is important to emphasize that, at this stage, the participation of the IT manager plays a crucial role. In collaboration with his team, he will identify and highlight challenges that may arise during integration. Among them, we can mention:

  • Cross-platform incompatibility;
  • Lack of investment in technology;
  • Poorly structured information flows;
  • Service templates.

With this survey, it is possible to point out new opportunities and estimate the costs generated.

Easing M&A challenges

The success of the process of merger and acquisition of companies depends on a well-guaranteed planning, which covers a variety of issues, from the analysis of organizations to the definition of corporate governance. The active participation of the IT team is of paramount importance, with crucial aspects that cannot be neglected in the strategy.

OManagers must compile relevant and secondary information about the business. This document should ideally cover data related to the client portfolio, partners, contracts with suppliers and other partners, investments, revenue forecast for future periods, among others. This approach helps to build a solid foundation for the negotiation and allows those involved to acquire knowledge about important aspects that can influence future results.

It is important to emphasize that, during the due diligence phase, the participation of the IT manager is fundamental. He, along with his team, will identify and locate obstacles that may arise during integration.

In addition, the target company must also be evaluated in relation to the service model, the use of outsourcing, the use of data and applications in the cloud, among other aspects. Based on this analysis, it becomes possible to identify opportunities, needs for changes and estimate the costs generated by operations. Shareholders’ agreement The shareholders’ agreement is a document that establishes the responsibilities of the partners in their involvement with the company and must cover several fundamental situations for the success of the merger or acquisition.

To make efficient changes, count on those who understand the subject!

HASAs companies become increasingly dependent on technological solutions, the role of IT acquires an even greater affinity. By understanding this importance, you increase the chances of achieving a successful merger and acquisition.

Therefore, we can say that information technology plays a strategic role not only in the operations initiated, but also provides essential support in driving major changes.

An ethical and responsible approach is key to integrating both parties. 3Capital is a specialist in this. Count on top professionals, who offer a wide network of knowledge and experience in major successful changes, always thinking about the best way to expand your business.

asset management

In IT, asset management involves managing all aspects of technology, whether physical or virtual. This includes taking steps to avoid inefficient investments and contributing to a culture of innovation by strengthening strategies.

In addition, the focus is on ensuring the efficiency of the systems, optimizing the use of hardware and software, offering agility in service and problem resolution. It is this management that determines the need for investments and adjustment of resources.

Information exchange

In an organization, the exchange of information is the key to the development of all operations. It is through this exchange that the processes flow according to the identified needs, thus, faster responses are elaborated, preserving the workflow and even creating new ones that met the new needs.

Systems integration

Among all the points mentioned, systems integration is the main aspect of IT responsibility, which must be planned by the manager who will define the tools kept, replaced and which ones should be acquired, experiencing a new scope of the system.

This covers important aspects, such as costs, finances, strategies and market positioning, encompassing points related to technology and all areas of the organization that receive support from this sector.

It is important to emphasize that, at this stage, the participation of the IT manager plays a crucial role. In collaboration with his team, he will identify and highlight challenges that may arise during integration. Among them, we can mention:

  • Cross-platform incompatibility;
  • Lack of investment in technology;
  • Poorly structured information flows;
  • Service templates.

With this survey, it is possible to point out new opportunities and estimate the costs generated.

Easing M&A challenges

The success of the process of merger and acquisition of companies depends on a well-guaranteed planning, which covers a variety of issues, from the analysis of organizations to the definition of corporate governance. The active participation of the IT team is of paramount importance, with crucial aspects that cannot be neglected in the strategy.

OManagers must compile relevant and secondary information about the business. This document should ideally cover data related to the client portfolio, partners, contracts with suppliers and other partners, investments, revenue forecast for future periods, among others. This approach helps to build a solid foundation for the negotiation and allows those involved to acquire knowledge about important aspects that can influence future results.

It is important to emphasize that, during the due diligence phase, the participation of the IT manager is fundamental. He, along with his team, will identify and locate obstacles that may arise during integration.

In addition, the target company must also be evaluated in relation to the service model, the use of outsourcing, the use of data and applications in the cloud, among other aspects. Based on this analysis, it becomes possible to identify opportunities, needs for changes and estimate the costs generated by operations. Shareholders’ agreement The shareholders’ agreement is a document that establishes the responsibilities of the partners in their involvement with the company and must cover several fundamental situations for the success of the merger or acquisition.

To make efficient changes, count on those who understand the subject!

HASAs companies become increasingly dependent on technological solutions, the role of IT acquires an even greater affinity. By understanding this importance, you increase the chances of achieving a successful merger and acquisition.

Therefore, we can say that information technology plays a strategic role not only in the operations initiated, but also provides essential support in driving major changes.

An ethical and responsible approach is key to integrating both parties. 3Capital is a specialist in this. Count on top professionals, who offer a wide network of knowledge and experience in major successful changes, always thinking about the best way to expand your business.



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