5 Challenges to Successful M&A
There are five big integration challenges for technology acquirers.
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“The U.S. has a longer hours culture, a more formal language used in the U.K. and a higher service culture in U.S. Then you are bringing together people with very different sets of values, behaviours, leadership styles, mindsets and policies. The integration challenge is winning the hearts and minds of both sets of employees and giving them a compelling vision to buy into,” says M&A expert Karen Thomas-Bland.
“Customers are another big integration challenge for technology acquirers. With leadership being distracted by the deal and integration process, it is not uncommon to lose focus on the customer. Customers are known to defect in times of uncertainty and competitors tend to strike when you are distracted. The integration challenge is retaining customers through the integration process. [Additionally], ensuring they don’t experience any loss in service quality,” says Thomas-Bland.
“It is currently a candidate-driven rather than employer-driven employment market,” says Thomas-Bland. “Specific technology skills – data analytics, cyber, digital, augmented/virtual-reality and artificial intelligence – are all in high demand. In times of uncertainty, top talent are likely to flee, and competitors are likely to pounce. Therefore, the integration challenge is having retention strategies lined up so you hang on to your best people.”
“An inability to drive the expected synergies from the deal. Due diligence helps you understand some of the risks and opportunities, but it’s impossible to unearth them all before you buy the company,” says Thomas-Bland. “The integration challenge is often managing “cost-to-achieve” with the same rigour as synergies.”
Bringing together business applications, technology landscape and system configuration. The integration approach needs to have a clear understanding of current technology assets, liabilities and key risk areas that affect day-one and beyond planning. For example, understanding how data integration efforts will impact key systems such as ERPs,” says Thomas-Bland.
Bringing together business applications, technology landscape and system configuration. The integration approach needs to have a clear understanding of current technology assets, liabilities and key risk areas that affect day-one and beyond planning. For example, understanding how data integration efforts will impact key systems such as ERPs,” says Thomas-Bland.
Karen Thomas-Bland is a global board-level adviser, partner level management consultant and non-executive director. She has significant transformational, successful M&A experience, including in the tech sector.
Karen Thomas-Bland
She says there are five big integration challenges for technology acquirers.
Check out our slideshow above for the five big challenges to successful M&A in the tech sector.
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