Mergers & Acquisitions Planning and Integration
Many companies in the marketplace today have come to appreciate the advantages of acquisitions in helping meet growth objectives, enter new markets or gain competitive advantage. Globalization, increased competition, pressure on profits and even competitive positioning is forcing companies to be more aggressive about acquisitions. The successful planning and integrating of the Information Technology (IT) of an acquired company can represent a significant challenge even for companies that have completed acquisitions in the past.

Speed and efficiency of the IT integration are often key factors in determining the success or failure of an acquisition in the area of achieving forecasted synergies. Indecisiveness can lead to delays, which can have significant negative impacts including triggering impairment charges (see FASB 142) if the goodwill is materially reduced.

What critical piece of advice can Transition Partners offer? Begin the IT integration planning process early. Develop and execute a plan designed to ensure that your acquisition integration strategy is executed properly. The basic key elements of an Integration Plan are as follows: