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M&A And Their Significant Rise Since 2010

M&A
Photo: Sebastian Duda - Fotolia

The global landscape has witnessed a significant rise in mergers and acquisitions (M&A) since 2010, with no signs of slowing down. In 2021, M&A activity even exceeded pre-pandemic levels, reaching new heights. As businesses increasingly turn to M&A as a vital tool for corporate development, they are met with numerous benefits, including expanded product offerings, enhanced financial strength, and a larger market share. However, while M&A holds immense potential, it also brings significant challenges.

The Main Challenge: IT Integration

One of the primary reasons for M&A failures is the lack of a robust IT integration strategy. IT integration is a formidable challenge because each company involved in the merger possesses its own data and processes. Merging or replacing these disparate systems, operations, and technologies can be a time-consuming and complex process. Effective planning for system integration is crucial for ensuring a seamless transition, minimizing disruptions, and preserving data integrity.

Data Integration: The Critical Element

Data integration is of paramount importance as it enables businesses to address the substantial data challenges that arise post-transaction, ultimately maximizing the value of the deal. Companies maintain a wealth of sensitive information, from customer account histories to billing and invoicing data, which must be seamlessly integrated to maintain their reputation and provide clients with the expected level of service.

The absence of an appropriate data integration strategy can hinder the ability to be proactive, limiting the ability to respond to opportunities promptly. Failing to maintain service quality could lead to customer loss and decreased profits. Moreover, an inefficient cost structure post-merger can make achieving anticipated synergies challenging, potentially costing revenue and failing to deliver expected outcomes.

Finding a Simplified Solution

To merge data efficiently from two companies, organizations require tools capable of managing data extraction, deduplication, consolidation, conversion, and routing. These tools should match records when possible and create new accounts when necessary. However, organizations must not overlook the complications associated with introducing multiple new platforms and technologies or relying on legacy solutions for data integration.

Forward-thinking businesses are addressing this challenge by prioritizing cloud-native solutions. These solutions reduce time to market, cut costs, and offer scalability and flexibility in consolidating disparate and legacy systems into a single, automated platform for storing all customer-related activities. These cloud solutions support various business models, ensuring continuous delivery and an improved customer experience.

By identifying cloud solutions that facilitate M&A processes, companies can efficiently bring data together from different organizations without the need for numerous technologies or reliance on outdated and inefficient platforms. Cloud solutions accelerate the integration process without compromising customer satisfaction or the benefits of the merger or acquisition.

By implementing cloud-based solutions to centralize and manage data efficiently, businesses can ensure that their M&A ventures are not only fruitful but also maintain their reputation and customer satisfaction.

Neglecting proper system integration can hinder the success of M&A deals. 

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