Description
Book SynopsisAs part of Deloitte Consulting, one of the largest mergers and acquisitions (M&A) consulting practice in the world, this title reveals in M&A Information Technology Best Practices how companies can effectively and efficiently address the IT aspects of mergers, acquisitions, and divestitures.
Table of ContentsPreface xv
Acknowledgments xix
Part I Introduction
Chapter 1 Introduction to the IT Aspects of Mergers, Acquisitions, and Divestitures 3
Varun Joshi and Saurav Sharma
Role of IT in M&A 4
Due Diligence 6
Integration/Separation Planning 8
Integration/Separation Execution 16
Wrapping It Up 20
Chapter 2 The Role of IT in Mergers and Acquisitions 23
Peter Blatman and Eugene Lukac
Quest to Capture Synergies 24
Capturing the Benefits 26
Wrapping It Up 32
Chapter 3 Aligning Business and IT Strategy during Mergers, Acquisitions, and Divestitures 35
Jason Asper and Wes Protsman
The Business-Aligned Integration Model 36
Enterprise Blueprint and IT Alignment 38
IT’s Role in Functional Blueprinting 39
Decision Making and Business Alignment 43
Business Alignment in Due Diligence 43
Wrapping It Up 44
Chapter 4 Mergers and Acquisitions IT Strategy, Approach, and Governance: IT and Its Customers 47
Chris DeBeer and Michael H. Moore
Strategy 48
Approach 49
Governance 50
Finance 51
Operations 54
Human Resources 57
Information Technology 60
Wrapping It Up 66
Part II Information Technology’s Role in Mergers, Acquisitions, and Divestitures
Chapter 5 IT Due Diligence Leading Practices 69
Mark Andrews and David Sternberg
Objectives and Complexities of IT Due Diligence 70
Areas of Investigation 72
Proprietary or Product Technology–Driven Due Diligence 76
Impact of Transaction Type on the Due Diligence Investigation 77
Investigation for Strategic Buyers versus Financial Buyers 78
Considerations of Planning IT Due Diligence 79
Considerations of Conducting IT Due Diligence 82
Considerations of Finalizing IT Due Diligence 86
Tying Due Diligence to the Next Steps in the Post-Merger Process 88
Wrapping It Up 88
Chapter 6 IT Infrastructure Aspects of Mergers, Acquisitions, and Divestitures 91
Rick Kupcunas, Mike Trisko, Jeffry Sprengel, and Mushtaque Heera
IT Infrastructure Blueprinting 91
IT Infrastructure Planning 93
IT Infrastructure Dependencies 100
Wrapping It Up 102
Chapter 7 M&A IT and Synergies 105
Jim Boland, Ronald Goldberg, Colin Hartnett, Sunil Rai, and Stephen Ronan
IT’s Role and Contribution to Synergy Capture 105
Synergy Capture and Benefits Tracking during the Merger, Acquisition, and Divestiture Lifecycle 120
Wrapping It Up 135
Chapter 8 Supporting Business Objectives with M&A-Aware Enterprise Architecture 137
Pavel Krumkachev, Shalva Nolen, Nitin Prabhakar, and Rajat Sharma
Sources of IT-Related Synergies during M&A 137
Post-Merger IT Integration Planning: The Model Makes the Difference 139
M&A-Aware Enterprise Architecture Models 139
Divestitures and the Enterprise Architecture Frameworks 143
Wrapping It Up 144
Chapter 9 The Importance of a Tested IT Strategy and Approach for Mergers, Acquisitions, and Divestitures 145
Pavel Krumkachev, Shalva Nolen, Nitin Prabhakar, and Rajat Sharma
M&A IT Organization and Strategy 145
A Tested and Repeatable Approach for IT Integrations 149
A Tested and Repeatable Approach for IT Divestitures 152
Wrapping It Up 155
Chapter 10 Cloud Considerations for M&A IT Architecture 157
Mike Brown
Understanding Cloud Solutions 157
Types of Cloud Solutions 158
Cloud Solution: Potential Benefits 158
Opportunity during Post-M&A Integration 158
Cloud Solutions for Post-M&A Plug-and-Play IT Frameworks 159
Determining Suitability for Cloud Solutions 160
Assessing Cloud Migration Timing 160
Establishing a Cloud Strategy 162
Evaluating Cloud Providers 163
Cloud Solution Success Factors 164
Wrapping It Up 165
Chapter 11 Data Implications of Mergers and Acquisitions 167
Sascha Elsing
Criticality of Data Management in M&A Transactions 167
Data Governance and Organizational Considerations 167
Data Confidentiality, Privacy, Security, and Risk Management 168
Data Archiving Requirements 168
Data Management Road Map 169
Customer Data Considerations 172
Wrapping It Up 173
Chapter 12 Using M&A to Streamline the Applications Portfolio 175
Colin Whiteneck, Joydeep Mukherjee, Ted Veterano, and Venky Iyer
Overview of an Applications Rationalization Program 178
Achieving Cost Synergies through Applications Rationalization 178
Achieving Operational Synergies through Applications Rationalization 182
Technology and Cost Impact in a Divestiture Event 188
Emerging Trends 193
Best Practices for Applications Rationalization in an M&A Scenario 194
Wrapping It Up 198
Chapter 13 Third-Party Contracts in M&A: Identifying and Managing Common Implications 199
Christine McKay, Joseph Joy, Ramkumar Jayaraman, and Ninad Deshmukh
Challenges Inherent in Different Types of M&A Transactions 200
Typical Realities 200
Primary Challenges 204
Tackling Challenges 206
Program Management 215
Wrapping It Up 217
Case Studies 218
Lessons Learned 221
Chapter 14 M&A IT Architecture and Infrastructure: Developing and Delivering Transition Services Agreements 225
Olivier May and Kevin Charles
Plan Early and Resource Appropriately 227
Foster Deal Team and Business Collaboration to Document Appropriately 229
Price Services Conservatively 231
Establish a Practical Governance Approach 235
Plan Exits and Remove Stranded Costs 247
Wrapping It Up 250
Chapter 15
Day 1 Implications for IT Functions 253
Sejal Gala and Sandeep Dasharath
Top Day 1 Priorities for IT 253
Wrapping It Up 263
Chapter 16 Transition Services Agreement (TSA)—Untangling the Web 265
Simon Singh, Nikhil Uppal, and Jennie Miller
Key Considerations for Drafting an Effective TSA 267
Structuring the TSA 270
Managing TSAs 271
Governance of TSA Services through a Parallel Structure 273
Rationale for Accelerated Exit of a TSA 278
Key Considerations for TSA Exit 279
Wrapping It Up 281
Chapter 17 IT Risk, Security, and Controls in M&A: Identifying and Managing Common Considerations 283
David Caruso, Kelly Moynihan, John Clark, Jamie Fox, Joseph Joy, and Scott Kaufman
Understanding the IT Risk, Security, and Controls Current State 283
Practices for Managing IT Risk, Security, and Control Considerations 293
Wrapping It Up 301
Part III The People Aspects of Mergers, Acquisitions, and Divestitures
Chapter 18 The Role of the CIO in Mergers, Acquisitions, and Divestitures 305
Irwin Goverman
The Double-Duty Role 305
The Internal Role 307
The External Role 314
Some Lessons Learned 317
Wrapping It Up 320
Chapter 19 The Role of CFO 321
Rich Rorem, Trevear Thomas, Nnamdi Lowrie, Heith Rothman, Venkat Swaminathan, Chelsea Gorr, Jenny Xu, and Mia Velasquez
Strategist Face 324
Catalyst Face 329
Operator Face 332
Steward Face 338
Wrapping It Up 341
Chapter 20 Managing the People Side of IT M&A 345
Tammie Potvin, Don Miller, Suseela Kadiyala, Michael Proppe, Sarah Hindley, and Laurel Vickers
Key Priority: Communicating for Impact 346
Merger Stages 348
Effective M&A Communication 351
Key Priority: Defining the Future-State IT Organization 352
Steps in M&A Organization Design 353
Key Priority: Assessing and Selecting IT Talent 358
Key Priority: Managing Change 363
Start with Your Leadership Team 363
Transition Employees 366
Consider Cultural Implications 367
Assess Integration Progress 369
Wrapping It Up 370
Chapter 21 Planning for Business Process Changes Impacting Information Technology 373
Blair Kin
Pre-Day 1 Planning 373
Day 1 Integration Imperatives 376
Long-Term Integration Requirements 380
Wrapping It Up 388
Part IV M&A IT Project Governance, Testing, and Business Intelligence
Chapter 22 Integration Management Office Best Practices 393
David Lake and Mauro Schiavon
Roles and Responsibilities 393
Key Activities 395
Sample IMO Templates and Deliverables 398
Managing the Deal 398
Wrapping It Up 403
Chapter 23 IT Program Governance during the Deal 405
John Uccello
Establish Governance Model 405
Establish the Program Management Office 408
Execute the Plan 413
Wrapping It Up 415
Chapter 24 Important Role of Data in an M&A Transaction 417
Lynda Gibson, Anil Tondavadi, and Chris Vu
Current Challenges and Lost Opportunities 418
Top 10 Ways to Use Information Management to Improve M&A 419
Wrapping It Up 438
Chapter 25 Overview of Testing 439
Angela Mattix
Types of Testing 439
Testing Functions and Tools 443
Test Preparation Activities 444
Timing of Testing 446
Wrapping It Up 448
Part V Conclusion
Chapter 26 Why Mergers, Acquisitions, and Divestitures Fail, and Considerations to Help Avoid a Similar Fate 451
Nikhil Menon
M&A Risks 452
Common Pitfalls 453
Critical Success Factors 455
Wrapping It Up 457
Chapter 27 M&A IT Key Success Factors 459
Nadia Orawski and Luke Bates
Key Success Factors 459
Wrapping It Up 461
Chapter 28 M&A IT, Summing It All Up 463
Habeeb Dihu, Nadia Orawski, Justin Calvin, Luke Bates, Bryce Metro, and Eric Niederhelman
Best Practices 464
Best Practices to Be Considered Prior to the Deal 464
M&A IT Strategy, Approach, and Governance Best Practices 467
M&A IT Security and Privacy Implications Best Practices 472
M&A IT and Synergies Best Practices 473
M&A IT Contracts Best Practices 473
M&A IT Organizational Implications Best Practices 475
Best Practices to Consider in Order to Execute the Deal 477
Lessons Learned 478
Wrapping It Up 479
Appendix A M&A IT Playbook Overview 493
Joseph Joy, Shalva Nolen, Simon Singh, and Nikhil Uppal
Appendix B Sample M&A IT Checklists 509
Shalva Nolen, Sreekanth Gopinathan, and Devi Aradada
Appendix C M&A IT Sample Case Studies 521
Manish Laad, Abhishek Mathur, and Prasanna Rajappa
About the Editor 531
About the Website 533
Index 535
