Many Buyer Deal teams approach IT planning for an Acquisition as an after-thought….particularly in the Search phase. Controlling the considerable costs for IT integration starts well before the Deal is on the table. Delaying IT considerations to the post-Day 0 period is an expensive mistake that can be avoided. If IT is not in your pre-Day 0 planning scope, the fix is easy.
- Buyer’s IT Readiness Assessment for M&A IT
- Acquisition IT Evaluation Checklist
- Buyer’s Strategy for IT Integration of Acquisition
- Buyer’s Estimate for IT Integration of Acquisition
- Buyer’s Deal Term Sheet for IT
Nothing upsets a Deal negotiation like a big surprise. IT Separation and Integration for an Acquisition can cost 1 to 3 times the IT operating budget of the Acquisition for complex deals. Finding out that IT costs and timelines don’t fit the Deal Value assumptions – after the Deal closes – is a common and costly surprise.
Day 0 to Day 1 timelines are typically 30-90 days. IT Risk for M&A is best managed before the Deal closes. Knowing what to do and getting it done quickly saves the Buyer considerable money and avoids aggravation and disappointment. If your team needs help, don’t delay.
- Acquisition IT Due Diligence
- Buyer’s Strategy for IT Integration of Acquisition including
- Business/IT Alignment, Optimization Potential & Cost/Benefit Analysis
- IT Transition Services Agreement and Operating Model
- IT Separation/Integration Concept of Work and Day 2 Commitments with Seller
- IT Sale Agreement and Inventory
- Buyer’s Evaluation of M&A Program Readiness
The Seller may have the best understanding of your Acquisition’s IT landscape and services but after Day 1, the cost and responsibility belong to the Buyer.
Delayed IT transitions of your Acquisition will degrade Deal Value, block other valuable IT work and frustrate business and IT teams alike. Smart Buyers ramp up quickly and exit TSA’s on-time or ahead of schedule. Prepare for Day 2 before the Deal closes.
- IT Transition Services Agreement Management
- IT Transition Services Operational Management
- IT Separation/Integration Project Plans for Day 2 with Confirmed Timelines, Costs, Resources
- IT Optimization Concept of Work for Day 3
Root causes for Acquisitions that don’t deliver expected value may be varied but Acquisitions with poor IT optimization always leave money on the table. Planning for Day 3 IT Optimization should begin before the Deal closes to set realistic expectations.
Day 3 Optimization requires technical acumen, Business and IT alignment, well thought-out strategies and plans and precise execution. Any gaps in your Day 3 team? Get the help you need to succeed before Day 3 arrives.
- Business and IT Aligned Optimization Strategy and Concept of Work
- IT Optimization Project Plans for Day 3 with Confirmed Timelines, Costs and Resources
- IT Optimization Value Tracking