As a business owner in the technology industry, you know that mergers and acquisitions happen frequently. If you have been looking at a potential merger, it's important that you take some time to think carefully about the process. That's why many business owners work with an advisor. Here's a look at some of the things that you need to consider from a technology standpoint as you're negotiating the merger.
Know The Current IT Conditions
You can't adequately plan a merger of any kind without having a solid understanding of the conditions that you're dealing with. As with all other aspects of the business, that also applies to the IT departments and the technology infrastructure.
Take time to assess the infrastructure, including all of the hardware, server-side software, and business applications. Consider which ones will be the best solutions for the final merged operation, and make sure that you have an established plan for the migration of the data that's not already present in that application.
Consider Your Technology Vendors
Every business has its preferred technology vendors for maintaining its servers, technology infrastructure, and software. The vendors you currently use may not be the same vendors that have been maintaining the technology components for the other company. Regardless of which vendors you choose to stick with, you should be sure that you have a clear history and detailed records of the maintenance services provided by the other vendors. This will be important for ongoing monitoring and maintenance.
Create Your Cohesive Plan
Once you've established the fundamentals and you understand your plan, it's time to create the details of that plan. That means determining exactly how each of the departments, platforms, teams, and initiatives will be combined to create the cohesive operation that you're envisioning.
This means having organizational structures, flow charts with long-range plans, detailed expectations for team-building and initiative implementation, and more. Your M&A advisor can help you with creating these documents while also taking into account the strengths and weaknesses of the teams that you're merging together. That way, you make the best possible use of each team member.
The more you understand about planning out the technology side of any merger, the easier the process is likely to be. With so many special considerations, it's no surprise that some business owners miss key details. Talk with a technology M&A advisor near you today for more guidance, especially with the nuances of the technology merger.