An IT Check-list for Merger and Acquisition of Businesses

Merger and Acquisition give tough challenges, for businesses. It is harmful to the work environment of both the seller and the acquiring company. Many IT issues are not given full consideration and forward-planning, during the due diligence stages.

However, IT planning and management is critical to a successful, and smooth changeover to a company restructuring after M&A. In lack of proper IT planning, many more issues may arise. I (Jeremy Lee Chen Seong), feel that some potential risks and disruptions can be reduced with research, planning, and coordinated communications, as IT plays a vital role in these activities.

IT Check-list for M&A

The IT team should gather all contracts, commitments entered with outside vendors and service providers, and agreements. It will establish transferability of assignment and termination clauses.

Software Licensing

While staying in industry, I (Jeremy Lee Chen Seong), have experienced that when a company is acquired by another firm, the transfer of licenses may not be straightforward. Hence, to avoid costly fees and penalties due to non-compliance, it’s important to understand the ownership and entitlements for all licensing.

Network

The IT management team must determine whether the two networks will remain separate, or if a completely new network will be built. These factors should be considered to make an effective, low-risk, minimally disruptive transition plan.

Carrier Contracts and Agreements

Another factor for consideration is the state of current carrier contracts and agreements. A course of action must be decided upon, in order to minimize any time-lapse or disruption for ordering new circuits.

Messaging

Using social technologies, including messaging, the company could improve workforce productivity by 20-25%. Hence, the IT team must determine which messaging service is currently in use by each party in case of a merger. Lack of messaging could cause disrupted employee communication.

Other Tools

Other tools to consider are -email archiving, mail forwarding services, the charge of telephony, VOIP, and A/V systems, documenting equipment and evaluating interoperability. There should also be clarity on the use of the primary domain and the creation of a new domain.

Thus, considering all the IT needs could lead to a smooth transition of the M&A process.