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Technology is a top concern for anyone doing M&A integration work. It can affect the overall valuation as well as the timeline to profitability. What are the top 3 technology integration concerns that you have addressed?
WE have found the main issue with technology integration is that there was never a clear enough technology integration strategy. Will you fully integrate all systems? Partially integrate systems such as Finance, HR? Or keep both completely separate? Keeping them completely separate is sometimes due to the high cost of integration versus the actual value the deal will create, this we see during acquisitions within an aggressive PE cycle.
Agreed on how much integration is necessary on day one in order to achieve the value of the M&A. It’s been my experience, depending on the situation, that much of the value proposition can be achieved with less integration early and adding more later as it becomes more clear on where the M&A should go. There are many “transitional states” that are achieved prior to integration completion. Many times this takes years.
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