Financier Worldwide quotes Charles Mallows on the importance of IT integration for M&A

In the M&A landscape, how does technology shape integration and ensure operational continuity? For serial acquirers a repeatable integration framework is essential to protecting returns across a portfolio of transactions, from assessing risk during due diligence processes through to integrating infrastructure and data across a combined entity. 

No two deals are the same, so each transaction, priorities and timelines should be tailored accordingly. Deal teams should be mindful of integration challenges from the outset, rather than treating them as post-completion concerns.

Indeed, early preparation on the sell-side can shape the success of post-deal integration, significantly reducing complexity and uncertainty for buyers.

Sellers are also incentivised to act proactively, because pre-sale work to disentangle the target’s technology stack from group infrastructure de-risks the buyer’s integration path, supporting a stronger valuation and accelerating execution.

Charles Mallows, Senior Associate in our Commercial team, comments in Financier Worldwide:

IT integrations routinely fail and meaningful value is lost to ineffective systems migration. Where the target is carved out of a seller group reliant on shared services such as enterprise resource planning (ERP), payroll, finance platforms or authentication tools, the acquirer inherits dependencies it cannot easily replicate, and promised transitional support often proves less workable when stress-tested.

"By then, the contractual position is largely irrelevant if technical integration is not achievable. Key client-facing staff and relationship owners often depart amid deal uncertainty, taking institutional knowledge and customer relationships with them and directly eroding the revenue base. Early identification, targeted retention packages and clear communication on future roles are essential.

Read the full article in Financier Worldwide here.