Mergers and acquisitions are filled with technology and organizational challenges - many which M&A teams may not have planned for. Whether it's people or software licensing, the M&A process is rarely predictable. Based on our experience of combining the infrastructures of hundreds of firms post-merger, we’ve outlined some key challenges that IT will face during M&A, and the solutions available through Microsoft Cloud solutions.
M&A Technology Challenge 1: Underestimating Change Management Needs
The most important component of the M&A process is the end-user. The end-users need to stay connected and productive, but the rapid changes brought about during M&A, often disrupt workflows and frustrate entire departments. M&A teams frequently underestimate how changes in technology can strain business units, leaving end-users feeling lost, and in a state of chaos.
Our Solution: SharePoint keeps employees connected with proactive announcements of changes, discussions on the impact, wikis for best practice work-around, and up to date documentation, helping to keep everyone on the same page.
M&A Technology Challenge 2: Assuming Licensing Assets Will Transfer
Licenses often don’t transfer to the new organization in a meaningful way, but the acquiring entity is overpaying when they add licensing assets into the valuation of the business. This can cause unplanned expenditures for new software licenses, which can wreck budgets and cash flow.
Our Solution: We manage the licensing transfer process and evaluate your current licensing. We look at solutions like Microsoft Hybrid Use Benefit for Azure, which allows clients to reuse their existing Windows Server Licensing with Software Assurance on Azure. We will map out your strategy and help you execute a plan.
M&A Technology Challenge 3: Manually Onboarding Employees
Manually onboarding employees can take up toan hour or more per user. This process can delay the onboarding of critical new human resources. Even worse, it puts yet another strain on IT personnel, who are already working around the clock to support the technology changes that occur during the M&A process.
Our Solution: We automate the onboarding process with our Onboarding Express tool. With Onboarding Express, new users are given the correct level of access and licenses automatically, as their information is added by HR into either their existing HR system, or into one of our custom forms. Onboarding Express removes the onboarding delay, saving IT time and money, while making employees feel part of the team on day one.
Interlink has led the IT integration for hundreds of M&A scenarios, providing support in the due diligence phase, during the integration, and post-merger phases. Our methodology uses six successive phases to help organize the efforts. Plus, we offer prebuilt M&A packages and offerings that fit your specific needs, so you can realize the full potential of your IT systems quickly.
Contact us today to learn how we can help your organization overcome common M&A IT challenges.
About the author
Matt Scherocman brings more than 25 years of experience in the information technology industry to Interlink Cloud Advisors. His experience includes both the system integrator and manufacturer sides of the business. During his time at the Microsoft Corporation, he was responsible for all the Large Account Reseller (LAR) relationships in the four state Heartland Area of Michigan, Ohio, Kentucky, and Tennessee. Prior to Microsoft, Scherocman led a Cincinnati based IT consulting company to grow 5000% and become a Microsoft Worldwide Partner of the Year. He is actively involved in the strategic vision and operation decisions of the company including finance, selling strategy and marketing. Matt holds a Bachelor of Science in Business degree from Miami University and is a Certified Expert in Microsoft licensing including speaking engagements at both Microsoft's Worldwide Partner Conference and Channel Partner Summit. He is a frequent contributor to leading industry publications.
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