CIOs: Do you want to be involved in M&A negotiations? Why or why not?

2.3k views6 Comments
Sort By:
Oldest
CIO in Services (non-Government)2 years ago
100% !!!  In any merger/acquisition, there will be a mismatch in technologies between the companies (most probably) a difference in I.T. strategies and implementation, a different set of regulatory requirements to some degree, differing approaches to security, different toolsets, different Cloud implementation, etc.

The CIO and CISOs HAVE to be involved at a very early stage to prevent small problems turning into huge issues at a later stage.
2
Director in Manufacturing2 years ago
We had a dedicated team in Corporate IT that worked on the initial integration cost estimates to be included in the total acquisition costs.  IT may not need to be there on the initial merger discussion, but they absolutely need to be there before final offer cost is calculated.   If the company is very small, 100 employees, $10million and the acquiring company is $40 billion and 130k employees, the IT involvement is actually ZERO.  But as the size grows IT engagement comes earlier in the process.  When the acquisition has a strong IT component to the value, the IT team gets involved much more and usually has deep engagement from both Corporate IT, and Business IT teams.  
3
VP & Chief Architect2 years ago
Having been involved in a handful of due-diligence activities and M&A projects through my career, many times the underlying technology of the acquired organization can make or break the financials of a deal.  In many cases, how quickly the combined operational costs can be optimized through synergies is a very important outcome of M&A activity, and technology can represent a significant amount of total operational cost, and as a result, a large percentage of an efficiency opportunity.  

Additionally, if one of the desired outcomes of the merger or acquisition is reliant upon the state of the technology environment of the acquired firm, this makes participation in the due diligence phase critical for IT.  I have seen due diligence efforts that hinged upon the overall health of the technology estate of the target organization, and has been a singular reason to support a go/no-go decision.
lock icon

Please join or sign in to view more content.

By joining the Peer Community, you'll get:

  • Peer Discussions and Polls
  • One-Minute Insights
  • Connect with like-minded individuals
CIO in Education2 years ago
To the extent it were applicable to my business, absolutely. Ensuring / performing the due diligence and understanding how all the pieces may (or may not) fit is imperative for a CIO.
Exec. Director - AI Industrialization & Platforms in Software2 years ago
We have a dedicated team who looks into M&A deals. We help them in doing due diligence for AI/ML startups where our company wants to do investments. When it comes to big M&A deals, we review systems and architecture to ok integrate with existing systems. We execute the integration strategy after M&A is signed by both companies.

Content you might like

IT Manager in Constructiona month ago
Hello,
the topic is so broad, what are you focused on?
Read More Comments
4.8k views2 Upvotes5 Comments

Human Factors (fears, mental health, physical spacing)85%

Technical / IT Factors (on-premise tools, pivoting back away from remote)14%

3.7k views3 Upvotes2 Comments
Sr. Director, Enterprise Applications and IT Services6 days ago
These worked for us:

Stakeholder Engagement - Engage all relevant stakeholders early and continuously throughout the procurement process. 

Adaptible Contracting - Use contracting methods that allow for adjustments ...read more
1
724 views1 Comment

Strongly agree5%

Agree58%

Neutral23%

Disagree9%

Strongly disagree3%

Unsure

It depends (please specify in the comments)

View Results
3.6k views1 Comment