The Secret for M&A Value Capture that’s Right in Your Own Backyard
by Jack Prouty, President, M&A Leadership Council
If you knew where 40% of the success potential for your M&A were buried, would you look for it? Of course you would – and the great news is that you can actually uncover it right now, within your own team.
John Sinkus, senior advisor with M&A Partners, has 30 years of business systems integration and enterprise architecture. He understands and articulates that the brightest jewel in the treasure chest for M&A value capture is actually … IT.
While presenting at our “Art of Technology Integration” seminars, John queues up some surprising facts about IT that will grab the attention of any company executive or key manager planning and executing a major M&A integration:
- “Up to 40% of synergies achieved are enabled by IT; 25% are wholly within IT”
- “While a crucial business objective in most M&As is to retain key personnel, IT is most often the functional area with the highest risk of loss in key talent”
- “The cut-over from running in parallel with transitional management, processes, facilities, etc. and migrating to the ‘steady state’ is largely determined by completion of essential IT integration activities”
I started my career in IT, and in the last 25 years have taken on an increasingly broader business management role in M&As. Throughout, I have never been involved in an M&A activity where IT has not been a critical area for success – achieved by ensuring that the requisite business division and IT organization must pull together.
So how do the IT folks feel about their role in effectively managing the IT activities within the context of the overall business integration? We find in our “Art of Technology Integration” seminars that they’ve already “drunk the kool-aid.” And what about their non-tech counterparts? Accountable CEOs, M&A managers and business owners typically need to build a broader knowledge of IT integration priorities, focus and deliverables at each stage of the M&A life cycle.
For both groups to share their challenges and concerns, becoming effective business partners for successful integration is the secret to leveraging those vast potential synergies. Thus, we invite you and your colleagues to attend our upcoming program, September 10-11, 2015 in Dallas, to interact, collaborate and plan to reach goals together. In addition to John Sinkus and our other faculty, you will enjoy our special guest speaker, John Hotta, a technology executive retired from Microsoft and Accenture, who will address the nuances of cybersecurity, cloud, devices and people.
For details on the event or to register, CLICK HERE.
See you next month,
Jack
P.S. If you missed Early Bird registration, call our office at 214-689-3800, for a special discount extension code just for readers of our newsletter.