There is generally a strategic purpose as to why one company wants to purchase or merge with another. In some cases, the purpose is to take advantage of the streamlined manufacturing or sales process that the second business has created. What should an acquiring business be aware of when integrating with the target organization?
Make Sure That Systems Can Be Integrated
It is critical to spend time creating a mergers and acquisitions IT integration plan. This can help to ensure that employee, customer, and other records can be placed on one specialized server or set of servers. If necessary, IT professionals from the target organization can be allowed to stay and share what they know about their system after the acquisition has been completed.
How Long Will It Take to Implement a New System?
Generally speaking, an organization wants to benefit from its acquisition as soon as possible. To improve the chances of a smooth merger process, there should be an mergers and acquisitions IT integration plan timeline put into place prior to the transaction taking place. For instance, the goal could be to have a new manufacturing or sales system in place no more than 30 days after the deal closes. The next goal could be to see cost savings or other tangible benefits within 90 days of the deal closing.
Will You Need to Let People Go?
It is likely that a merger will result in some employees being laid off. Both the acquiring and the target business should be upfront about how a merger could impact employees. It may be a good idea to allow those who are likely to be terminated to take a buyout or otherwise leave on their own terms.
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