Understanding Mergers and Acquisition, and How IT Comes into Play

A merger or an acquisition provides various challenges to the existing work environment. Employees will be worried about the possibility of losing their jobs due to the restructuring that will take place, while the top management will be tasked with making sure the merger goes through smoothly so that it doesn’t interrupt the business operations.

In all the processes, the issues that the IT department might undergo might be overlooked. This is why it is imperative that you consider proper IT planning and management for everything to be successful. This is true because businesses are now working within a digital environment, with many things using technology to run.

With proper research and planning, you can reduce any risk and disruption that might happen, and IT plays a vital role in all these.

So, how does IT come in when planning a proper merger and acquisition?

Manage Existing IT Contracts

The IT department needs to identify all existing contracts and commitments that have been entered with outside service providers and vendors to make sure the contracts are either transferred, assigned to new vendors or terminated altogether. This helps limit the exposure of all the parties involved in the contract so that you can maintain a relationship with the vendors.

The IT department also needs to understand the kind of contracts that were put down with the employees so that you can include the commitments in the transition.

Software Licensing Aspects

You need to make sure that you look at the various aspects of software licensing as part of the transition process. When the company is taken over by another company, the transfer of the software licenses might become an issue due to the agreement entered in with the software provider.

Understand that the ownership and entitlement to certain software are based on the agreement that you came up with, and for you to remain in compliance, you need to understand what each clause meant so that you aren’t in dispute with the vendor.

The way you handle licensing also comes in due to the recent GDPR regulations that were put in place. You can read more about GDPR and how it affects licensing and trading https://www.amazingsupport.co.uk/blog.

Domain

It is true that once the merger gets completed; there will be an issue with the domain because customers for each company will still visit the old domain. It is therefore crucial that the merged company identifies which is the right domain to work for both companies so that you can merge smoothly.

One of the ways to do this is to redirect users that come to the dropped domains so that they get to the new domain. This means leaving a message to this effect telling them of the new merger and why you are redirecting them in the first place.

The IT department needs to work with the management team to come up with the necessary domain path. Will you require a new domain? Will the two companies come together into a single domain, or will each company maintain a separate domain? The issue of maintaining a domain lies squarely on the integration of the entity and the plan that the executives decide upon.

Infrastructure Management

Finally, you need to have a plan on how to manage the IT infrastructure that is owned by both companies. You ought to understand whether the infrastructure needs to be integrated into other systems or whether it should be outsourced. The decision will depend on how practical the decision is, whether to outsource or retain the infrastructure within the premises.

Final words

When it comes to mergers, you need to take charge and make sure the IT department isn’t left out of the whole process. Take time to understand what you need in terms of delivery and how to go about everything.