Statistics and media reports indicate that the success rate for mergers and acquisitions is about 50%. However, it is a little more complicated than that as the definition of success is somewhat subjective. Think of it as a sliding scale between complete failure and complete success. The merger or acquisition would be a success upon receipt of all aspirations, identified benefits, cost savings and increased profits. In the worst-case scenario, it would lead to the collapse of both businesses under financial strain.
In Mergers and Acquisitions: The case for early IT involvement, we present a compelling argument that the success rate of mergers and acquisitions is increased by involving IT professionals in the initial discovery and due diligence before making a final buying decision. We liken buying an old house without a structural survey to purchasing a business without considering the IT implications.
Some businesses have the financial resources and operational capacity to absorb a bad deal, but for many, it could be catastrophic. This book provides thought-provoking questions to help identify potential integration issues and appraise the viability of the transaction from an IT perspective before signing contracts.
My co-author John Presland led numerous mergers and acquisitions whilst working for several different UK based insurance providers. In addition to my involvement with pre-acquisition due diligence with a German energy provider, I was part of John’s team in the insurance sector; giving both of us an in-depth understanding of the pitfalls and challenges.
Robert is an information security consultant with over 20 years of experience across various organisations, both in the United Kingdom and internationally. Robert graduated in 1997 with an honours degree in software engineering for security and safety-critical systems. Contact Robert directly through Linked In.