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M&A Information Technology Best Practices

Book Description

Add value to your organization via the mergers & acquisitions IT function

As part of Deloitte Consulting, one of the largest mergers and acquisitions (M&A) consulting practice in the world, author Janice Roehl-Anderson reveals in M&A Information Technology Best Practices how companies can effectively and efficiently address the IT aspects of mergers, acquisitions, and divestitures. Filled with best practices for implementing and maintaining systems, this book helps financial and technology executives in every field to add value to their mergers, acquisitions, and/or divestitures via the IT function.

  • Features a companion website containing checklists and templates

  • Includes chapters written by Deloitte Consulting senior personnel

  • Outlines best practices with pragmatic insights and proactive strategies

Many M&As fail to meet their expectations. Be prepared to succeed with the thorough and proven guidance found in M&A Information Technology Best Practices. This one-stop resource allows participants in these deals to better understand the implications of what they need to do and how

Note: The ebook version does not provide access to the companion files.

Table of Contents

  1. Cover
  2. Series Page
  3. Title Page
  4. Copyright
  5. Preface
    1. This Book's Setup
  6. Acknowledgments
  7. PART I: Introduction
    1. Chapter 1: Introduction to the IT Aspects of Mergers, Acquisitions, and Divestitures
      1. Role of IT in M&A
      2. Due Diligence
      3. Integration/Separation Planning
      4. Integration/Separation Execution
      5. Wrapping It Up
    2. Chapter 2: The Role of IT in Mergers and Acquisitions
      1. Quest to Capture Synergies
      2. Capturing the Benefits
      3. Wrapping It Up
    3. Chapter 3: Aligning Business and IT Strategy during Mergers, Acquisitions, and Divestitures
      1. The Business-Aligned Integration Model
      2. Enterprise Blueprint and IT Alignment
      3. IT's Role in Functional Blueprinting
      4. Decision Making and Business Alignment
      5. Business Alignment in Due Diligence
      6. Wrapping It Up
    4. Chapter 4: Mergers and Acquisitions IT Strategy, Approach, and Governance: IT and Its Customers
      1. Strategy
      2. Approach
      3. Governance
      4. Finance
      5. Operations
      6. Human Resources
      7. Information Technology
      8. Wrapping It Up
  8. PART II: Information Technology's Role in Mergers, Acquisitions, and Divestitures
    1. Chapter 5: IT Due Diligence Leading Practices
      1. Objectives and Complexities of IT Due Diligence
      2. Areas of Investigation
      3. Proprietary or Product Technology–Driven Due Diligence
      4. Impact of Transaction Type on the Due Diligence Investigation
      5. Investigation for Strategic Buyers versus Financial Buyers
      6. Considerations of Planning IT Due Diligence
      7. Considerations of Conducting IT Due Diligence
      8. Considerations of Finalizing IT Due Diligence
      9. Tying Due Diligence to the Next Steps in the Post-Merger Process
      10. Wrapping It Up
      11. References
    2. Chapter 6: IT Infrastructure Aspects of Mergers, Acquisitions, and Divestitures
      1. IT Infrastructure Blueprinting
      2. IT Infrastructure Planning
      3. IT Infrastructure Dependencies
      4. Wrapping It Up
    3. Chapter 7: M&A IT and Synergies
      1. IT's Role and Contribution to Synergy Capture
      2. Synergy Capture and Benefits Tracking during the Merger, Acquisition, and Divestiture Lifecycle
      3. Wrapping It Up
    4. Chapter 8: Supporting Business Objectives with M&A-Aware Enterprise Architecture
      1. Sources of IT-Related Synergies during M&A
      2. Post-Merger IT Integration Planning: The Model Makes the Difference
      3. M&A-Aware Enterprise Architecture Models
      4. Divestitures and the Enterprise Architecture Frameworks
      5. Wrapping It Up
    5. Chapter 9: The Importance of a Tested IT Strategy and Approach for Mergers, Acquisitions, and Divestitures
      1. M&A IT Organization and Strategy
      2. A Tested and Repeatable Approach for IT Integrations
      3. A Tested and Repeatable Approach for IT Divestitures
      4. Wrapping It Up
    6. Chapter 10: Cloud Considerations for M&A IT Architecture
      1. Understanding Cloud Solutions
      2. Types of Cloud Solutions
      3. Cloud Solution: Potential Benefits
      4. Opportunity during Post-M&A Integration
      5. Cloud Solutions for Post-M&A Plug-and-Play IT Frameworks
      6. Determining Suitability for Cloud Solutions
      7. Assessing Cloud Migration Timing
      8. Establishing a Cloud Strategy
      9. Evaluating Cloud Providers
      10. Cloud Solution Success Factors
      11. Wrapping It Up
    7. Chapter 11: Data Implications of Mergers and Acquisitions
      1. Criticality of Data Management in M&A Transactions
      2. Data Governance and Organizational Considerations
      3. Data Confidentiality, Privacy, Security, and Risk Management
      4. Data Archiving Requirements
      5. Data Management Road Map
      6. Customer Data Considerations
      7. Wrapping It Up
    8. Chapter 12: Using M&A to Streamline the Applications Portfolio
      1. Overview of an Applications Rationalization Program
      2. Achieving Cost Synergies through Applications Rationalization
      3. Achieving Operational Synergies through Applications Rationalization
      4. Technology and Cost Impact in a Divestiture Event
      5. Emerging Trends
      6. Best Practices for Applications Rationalization in an M&A Scenario
      7. Wrapping It Up
    9. Chapter 13: Third-Party Contracts in M&A: Identifying and Managing Common Implications
      1. Challenges Inherent in Different Types of M&A Transactions
      2. Typical Realities
      3. Primary Challenges
      4. Tackling Challenges
      5. Program Management
      6. Wrapping It Up
      7. Case Studies
      8. Lessons Learned
    10. Chapter 14: M&A IT Architecture and Infrastructure: Developing and Delivering Transition Services Agreements
      1. Plan Early and Resource Appropriately
      2. Foster Deal Team and Business Collaboration to Document Appropriately
      3. Price Services Conservatively
      4. Establish a Practical Governance Approach
      5. Plan Exits and Remove Stranded Costs
      6. Wrapping It Up
    11. Chapter 15: Day 1 Implications for IT Functions
      1. Top Day 1 Priorities for IT
      2. Wrapping It Up
    12. Chapter 16: Transition Services Agreement (TSA)—Untangling the Web
      1. Key Considerations for Drafting an Effective TSA
      2. Structuring the TSA
      3. Managing TSAs
      4. Governance of TSA Services through a Parallel Structure
      5. Rationale for Accelerated Exit of a TSA
      6. Key Considerations for TSA Exit
      7. Wrapping It Up
    13. Chapter 17: IT Risk, Security, and Controls in M&A: Identifying and Managing Common Considerations
      1. Understanding the IT Risk, Security, and Controls Current State
      2. Practices for Managing IT Risk, Security, and Control Considerations
      3. Wrapping It Up
  9. PART III: The People Aspects of Mergers, Acquisitions, and Divestitures
    1. Chapter 18: The Role of the CIO in Mergers, Acquisitions, and Divestitures
      1. The Double-Duty Role
      2. The Internal Role
      3. The External Role
      4. Some Lessons Learned
      5. Wrapping It Up
    2. Chapter 19: The Role of CFO
      1. Strategist Face
      2. Catalyst Face
      3. Operator Face
      4. Steward Face
      5. Wrapping It Up
    3. Chapter 20: Managing the People Side of IT M&A
      1. Key Priority: Communicating for Impact
      2. Merger Stages
      3. Effective M&A Communication
      4. Key Priority: Defining the Future-State IT Organization
      5. Steps in M&A Organization Design
      6. Key Priority: Assessing and Selecting IT Talent
      7. Key Priority: Managing Change
      8. Start with Your Leadership Team
      9. Transition Employees
      10. Consider Cultural Implications
      11. Assess Integration Progress
      12. Wrapping It Up
    4. Chapter 21: Planning for Business Process Changes Impacting Information Technology
      1. Pre-Day 1 Planning
      2. Day 1 Integration Imperatives
      3. Long-Term Integration Requirements
      4. Wrapping It Up
  10. PART IV: M&A IT Project Governance, Testing, and Business Intelligence
    1. Chapter 22: Integration Management Office Best Practices
      1. Roles and Responsibilities
      2. Key Activities
      3. Sample IMO Templates and Deliverables
      4. Managing the Deal
      5. Wrapping It Up
    2. Chapter 23: IT Program Governance during the Deal
      1. Establish Governance Model
      2. Establish the Program Management Office
      3. Execute the Plan
      4. Wrapping It Up
    3. Chapter 24: Important Role of Data in an M&A Transaction
      1. Current Challenges and Lost Opportunities
      2. Top 10 Ways to Use Information Management to Improve M&A
      3. Wrapping It Up
    4. Chapter 25: Overview of Testing
      1. Types of Testing
      2. Testing Functions and Tools
      3. Test Preparation Activities
      4. Timing of Testing
      5. Wrapping It Up
  11. PART V: Conclusion
    1. Chapter 26: Why Mergers, Acquisitions, and Divestitures Fail, and Considerations to Help Avoid a Similar Fate
      1. M&A Risks
      2. Common Pitfalls
      3. Critical Success Factors
      4. Wrapping It Up
    2. Chapter 27: M&A IT Key Success Factors
      1. Key Success Factors
      2. Wrapping It Up
    3. Chapter 28: M&A IT, Summing It All Up
      1. Best Practices
      2. Best Practices to Be Considered Prior to the Deal
      3. M&A IT Strategy, Approach, and Governance Best Practices
      4. M&A IT Security and Privacy Implications Best Practices
      5. M&A IT and Synergies Best Practices
      6. M&A IT Contracts Best Practices
      7. M&A IT Organizational Implications Best Practices
      8. Best Practices to Consider in Order to Execute the Deal
      9. Lessons Learned
      10. Wrapping It Up
  12. Appendix A: M&A IT Playbook Overview
    1. Scope of the Playbook
    2. M&A Playbooks Should Be Alive
    3. Variation in M&A IT Playbook Considerations Due to Differences in Types of M&A Deals
    4. Deal Type—IT Divestures
    5. Tools and Templates
    6. Wrapping It Up
  13. Appendix B: Sample M&A IT Checklists
    1. IT Due Diligence
    2. IT Integration Readiness
    3. IT Divestiture Readiness
    4. IT Transition Services Agreements (TSAs)
    5. Data Requirements
    6. Wrapping It Up
  14. Appendix C: M&A IT Sample Case Studies
    1. Introduction
    2. Case Studies
    3. Wrapping It Up
  15. About the Editor
  16. About the Website
  17. Index