© Copyright Acquisition International 2025 - All Rights Reserved.

Article Image - Siloes and Separations: The IT Challenges of Mergers and Acquisitions
Posted 16th July 2024

Siloes and Separations: The IT Challenges of Mergers and Acquisitions

Global mergers and acquisitions (M&A) are back on the rise. According to the London Stock Exchange Group, global takeovers totalled $1.3 trillion this year – an increase of 23% compared with the same period last year,  Despite this uptick in activity, KPMG’s 2023 CEO Survey revealed that 83% of M&A deals failed to boost shareholder returns. The study found that this was primarily due to various post-merger integration challenges, which for many of these issues could be addressed with a right-fit enterprise resource planning (ERP) system.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

Siloes and Separations: The IT Challenges of Mergers and Acquisitions
Effective customer acquisition strategies leverage emerging technologies to connect with audiences at multiple touchpoints, business concept

By Martin Burden, Commercial Director at digital transformation specialists, Nexer Enterprise Applications

Global mergers and acquisitions (M&A) are back on the rise. According to the London Stock Exchange Group, global takeovers totalled $1.3 trillion this year – an increase of 23% compared with the same period last year.

Despite this uptick in activity, KPMG’s 2023 CEO Survey revealed that 83% of M&A deals failed to boost shareholder returns. The study found that this was primarily due to various post-merger integration challenges, which for many of these issues could be addressed with a right-fit enterprise resource planning (ERP) system.

One of the most significant challenges of implementing post-merger integration is the inheritance of multiple IT systems. The newly formed organisation has to labour under the siloed management of finance, supply chain operations, HR, sales, procurement, and various other departments. This doesn’t have to be the case.

In the high-stakes world of mergers and acquisitions, where fortunes are lost or found, enterprise resource planning systems have emerged as the unsung hero. Leaders must ensure they become a key consideration of any business embarking on an M&A strategy. Importantly, they must consider leveraging expertise and implementing a robust change management project to unlock a deal’s full potential.

The backbone of integration: Consistency and collaboration

At the heart of every successful M&A integration lies the challenge of harmonising disparate systems, processes, and data streams. ERP systems can serve as the backbone of integration. They have the ability to seamlessly consolidate financial, operational, and customer data into a centralised system. This unified view not only enhances visibility and accurate reporting but also fosters collaboration and consistent operations across the merged entities.

Standardising for success

One of the key advantages of ERP systems in mergers and acquisitions is their ability to standardise business processes. By eliminating inefficiencies and redundancies, ERP systems ensure that the newly formed organisation operates as a cohesive unit, leveraging best practices and optimising workflows. 

Imagine trying to merge two companies with vastly different operational models. Without the right ERP system, it would be like trying to merge fast food with fine dining. However, with a robust ERP solution, merging entities can streamline processes and unlock the true synergies of the merger.

Scalability and agility: The keys to unlocking growth 

In fast-paced, dynamic markets, scalability and agility are paramount. Modern ERP systems such as Microsoft Dynamics 365, are designed with these principles in mind. They’re designed to accommodate increased transaction volumes, additional users, and new business units resulting from M&A activities. This scalability ensures that the merged entity can grow without significant disruptions, capitalise on new opportunities and adapt to changing market dynamics.

Cost optimisation and cloud agility 

Beyond operational efficiencies, ERP systems specifically contribute to cost optimisation in mergers and acquisitions. By consolidating multiple legacy systems into a single, modern ERP solution, companies can realise significant cost savings in maintenance, hardware, and support staff. Additionally, cloud-based ERP solutions offer unparalleled agility and flexibility, enabling seamless integration across different locations and overcoming geographical challenges inherent in M&A deals. 

The future M&A lies in the hands of ERP integration

As the business landscape continues to evolve, the role of ERP systems in facilitating successful M&A integrations will only become more crucial. These powerful tools are no longer just supporting businesses; their commanding operations and enabling companies to grow into corporate giants. With their ability to unify disparate entities, streamline processes, and unlock operational efficiencies, ERP systems are poised to take centre stage in the business environment that demands digital transformation. As the appetite for growth ever increases, the future of M&A lies in the hands of technological integration. 

Categories: M&A, News


You Might Also Like
Read Full PostRead - Eye Icon
CRM Specialists of Three Decades
Innovation
04/01/2022CRM Specialists of Three Decades

Today, advanced digitisation offers companies from all industries the opportunity to open up new markets or market segments. This requires revolutionary ideas, creative solutions and new technologies.

Read Full PostRead - Eye Icon
ICL Makes C$137M Offer for Allana Potash Shares
M&A
27/03/2015ICL Makes C$137M Offer for Allana Potash Shares

ICL today announced that it has made an offer for shares with Allana Potash Corp.

Read Full PostRead - Eye Icon
Ardian-backed Novacap purchases CU Chemie Uetikon
M&A
02/07/2015Ardian-backed Novacap purchases CU Chemie Uetikon

French chemicals group Novacap, which is backed by Ardian, has agreed to acquire CU Chemie Uetikon, a Germany-based maker of pharmaceutical substances. The seller is Equistone Partners Europe.

Read Full PostRead - Eye Icon
11 Tech Tools to Get You Through a Recession
Innovation
05/08/202211 Tech Tools to Get You Through a Recession

As the stresses of an impending recession grow, business owners are strategizing how to survive this economic uncertainty by re-evaluating current and future expenses. For example, software subscriptions that once felt necessary may seem like a “nice to have

Read Full PostRead - Eye Icon
RINA Services Acquires QIC Inc. to Expand Oil and Gas Services
M&A
14/05/2015RINA Services Acquires QIC Inc. to Expand Oil and Gas Services

RINA Services Acquires QIC Inc. to Expand Oil and Gas Services

Read Full PostRead - Eye Icon
Greek Consumers Fiscal Future Looks Brighter
Finance
04/08/2015Greek Consumers Fiscal Future Looks Brighter

MoneyGram, an international money transfer service, has resumed international money transfers into Greece, offering hope to Greek consumers and businesses.

Read Full PostRead - Eye Icon
Creating Collaborative Business Outcomes: Why Tech and Finance Leaders Should Unite During the M&A Process
Finance
08/04/2025Creating Collaborative Business Outcomes: Why Tech and Finance Leaders Should Unite During the M&A Process

In any competitive marketplace there are lots of drivers for companies to merge and acquire each other. Sometimes it’s about expanding market reach by tapping into markets that a competitor has better footings in, or it could be about being better positioned

Read Full PostRead - Eye Icon
Best Broadcast Media CFO 2023 (Middle East): Hussam Alnouri
Strategy
27/07/2023Best Broadcast Media CFO 2023 (Middle East): Hussam Alnouri

Taking up the mantle of Chief Finance Officer is a staggering achievement in itself, but it takes a certain kind of person to elevate the position beyond its already crucial role.

Read Full PostRead - Eye Icon
3 Proven Strategies for Mastering the Art of Closing High-Stake M&A Deals
M&A
31/05/20233 Proven Strategies for Mastering the Art of Closing High-Stake M&A Deals

Mergers and acquisitions have always been risky undertakings that can end without profit. The most complex transactions can rightfully involve M&A that can drag on for years without any visible results.



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have 14 unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow