No one can deny that it’s in a company’s best interests to increase its market influence and find opportunities to grow its services. Mergers and acquisitions (M&A) are often the methods we use to take this plunge, but if we’re being honest here, it can be easy for us to look at them with dollar signs in our eyes and nothing else.
Just like when attempting to solve a Rubik’s Cube, business leaders ought to rethink their approach to M&As. We can start with information technology (IT) solutions. Why? Because our digital technologies (and the hardware that supports them) are actually a goldmine of value during M&As.
And if organisations understand why this is the case, they will have a much easier time transforming their operations, regardless if they’re a buyer or seller in the exchange.
An overview of mergers and acquisitions
M&As are full-scale, comprehensive strategies companies use to expand their reach, acquire new digital solutions, and shape their operations to make them more streamlined and cost-efficient. Mergers are when multiple companies become one, while acquisitions are when one company takes over another.
While they may sound like an exclusive move only available to corporate giants, M&A transactions can be small or large for any company – it just depends on the situation.
Some advantages of successful M&A deals include:
- Increased market share.
- Access to dynamic information systems capable of supporting new processes.
- Access to new procedures that generate greater revenue and less stressed employees.
- More resources at the company’s disposal.
- A larger talent pool of employees that can enable processes more efficiently.
Depending on how prepared an organisation is, M&As can be a tad risky. This is especially the case if the parties involved don’t have cyber security solutions like SASE in place or they’re not using their digital technologies effectively. But before we make things too gloomy, let’s rewind – M&As can result in long-term business successes, with IT solutions being the anchor that stabilises them.
Why do businesses need digital technologies?
Digital technologies have revolutionised business models and given companies the ability to transform into digital businesses. Consider the following general benefits of using technologies and digital systems for company operations:
- Streamlined processes – technologies help hasten company procedures, making them more efficient and cost-effective.
- Increased visibility – digital tools give companies access to real-time data and insights, which can help inform employees and leaders of how well the business is operating.
- Improved communication – IT tools facilitate communication between team members, senior staff, stakeholders, and customers, ensuring everyone is on the same page.
- Reduced costs – by automating processes and reducing manual tasks, IT solutions can help lower overhead costs.
- Faster decision-making – the data our technology solutions gather helps us make decisions faster, allowing us to identify competitive advantages and use them.
- Better customer/employee experience – technology can help improve the customer and employee experience by providing more relevant services and support.
- Enhanced agility – IT solutions help us adapt to changing market conditions.
It doesn’t matter if a company is in real estate or the legal field, technology is foundational to the organisation as a whole (as the list above will attest to). When an acquisition or merger occurs, our processes can feel like they’re in limbo, leaving everyone worried and confused. This leads us to our next point…
Why are IT solutions valuable for mergers and acquisitions?
IT solutions can be a powerful tool in the M&A process. They can be the Short Round to our companies’ Indiana Jones, helping streamline the transition period while keeping all of our assets secure and functional. Since businesses often deal with sensitive information during M&As, cyber security is a 100% ‘must-do’ practice.
Technology solutions such as network monitoring tools or cloud security can help protect data and ensure it crosses over to the new institution. Outside of security, technology can help simplify the entire M&A process while keeping everything (and everyone) in sync with legal regulations.
From merging systems together to acquiring new tools, digital solutions have the means to tie every facet of the involved parties together (we’re thinking: the networks themselves, people, procedures, etc.) to create an environment that is dedicated to upholding M&A success and a better customer experience.
5 tips for leveraging IT tools in M&As
If a company follows these tips, it’ll be able to call itself a digital business and make its M&As feel like a trip to the spa:
- Automate processes – automation allows team members to focus on ‘bigger-picture’ tasks rather than small, time-consuming projects.
- Use analytics for performance monitoring – taking advantage of analytics can help organisations monitor the rollout of an M&A, reducing miscommunication and unforeseen incidents.
- Implement security tools – cyber security solutions will help uphold high standards of compliance, data security, safe communication, etc.
- Leverage cloud technologies – the cloud makes for greater scalability with less hardware maintenance.
- Invest in managed IT services – managed service providers (MSPs) offer clients all the IT support they need to upgrade/maintain all facets of their technical infrastructure. MSPs have a knack for consolidating systems into a cost-efficient ecosystem, allowing their users to focus on assisting their customers and growing their businesses.
Stressing over your M&A? Atarix has your back
Mergers and acquisitions can be the greatest things since sliced bread, and when executed correctly, it can help companies become more competitive, flexible, and cohesive. But without proper digital technologies supporting them, organisations may find themselves diving into a rough ocean.
The M&A IT specialists at Atarix are experts in digital transformations and finding the true value of technology for businesses. Get in touch today for your next M&A and shore up your IT infrastructure with valuable solutions that support your company’s principle values.