How to Prioritize Technology in M&A Integration

Technology is a central part of many M&A deals and is only going to play a more important role as time goes on. However, all too many businesses and business brokers fail to prioritize this aspect of M&A, risking a more complex acquisition process and numerous challenges around bringing two businesses together technologically.

Prioritize tech in exit planning

How can businesses make tech a priority when it comes to M&A integration? A recent article by channelfutures.com dived into the issue:

“Disjointed technology integration can negatively affect processes between two businesses, as well as put business objectives and synergy delivery at risk. Technology, in my experience, either makes or breaks the deal – it’s that important. M&A deals are subject to heavy financial scrutiny from shareholders and financial advisers, but good technical due diligence is often an overlooked area.” — Karen Thomas-Bland, Channel Futures. Source.

The key to effectively integrating technology in an M&A deal boils down to understanding the nature of the businesses involved. The article outlines three common paths to take:

Keep the two businesses separate and preserve the individual tech capabilities of both

• Integrate both business’ tech capabilities and coordinate across geographies, functions, sectors, and business units

• Use the integration as an opportunity to redefine the business in terms of tech — this is costly and complex but can be rewarding if done right

Deciding which route to take involves a comprehensive understanding of both businesses, their current capabilities, how they align, your budget, your future goals, and more.

Work with an M&A advisor

The M&A and exit planning process is typically complex and demanding, and technology adds a new layer of challenges to this. However, it’s essential to treat tech as a priority if you want a smooth, successful transaction.

At BizNexus, we can help you achieve this. Our community helps businesses through every stage of the M&A process, with the help of experienced M&A advisors.