Financial integration – financial system integration

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This topic contains 2 replies, has 3 voices, and was last updated by  Lawrence Velasco 1 week, 4 days ago.

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  • #113458

    Kent Anderson
    Participant

    Company financial systems are built over years and are full of nuance over time. What are the largest pitfalls in choosing one companies financial software over the other?

    #113679

    Arlene Clinkscales
    Participant

    Although most integration approach is to Assimilate, not just the operations, but the systems, there are instances in which the newco or even a brand new system is used for the merged companies. There are so many factors to consider that may lead to pitfalls, but here are a few:
    – focusing at the financial analysis as the primary drivers.. instead of the operational impacts.
    – trying to fit a round ball into a square peg… the newco business model is ignored (or not well understood) and focused fit into the parent co. ERP without much configuration
    – resources not available… the right ones and not enough

    #113933

    Lawrence Velasco
    Participant

    This is a challenging exercise in post merger integration. Most often than not, acquires have its existing accounting system. I guess the integration of financial systems must also be risk based. Is the current accounting system of the acquired not reliable or not up to par based on the internal control standards of the acquirer? If yes, then a robust transition plan must be in place. Otherwise, you will continue to doubt the data which will be a hindrance to overall post-merger synergy harvest.

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