In our previous newsletter, we discussed how important it is to have a senior business minded tech leader on your team when you’re venturing into M&A or any transaction.
This time, we’d like to share more specific examples of how our own experts have saved clients from stress and wasted time before, during, and after a transaction.
An IT roadmap to prevent years of futile projects
The commercial thesis for an acquisition depended upon merging processes across the group. But we saw that the actual tech stacks were incompatible. We suggested a hybrid integration plan, allowing the commercial plan to proceed without costly rewrites. The business might have wasted years had we not been involved.
When tech due diligence doesn’t happen
An acquisition went through, and Freeman Clarke was called in to help the buyer with the integration process. We found that the seller’s core product was built on Microsoft technology scheduled for retirement, and the buyer’s unplanned replacement approached what they paid for the acquisition. Apparently, the accountancy group leading due diligence lacked the expertise to spot the technical problems.
Obscured by the cloud
For a business looking to be acquired, the M&A advisors had promoted cloud migration for deep savings. But they didn’t understand the technical realities. Our own assessment showed cloud storage would double existing expenditures, even if you ignored the complexity of the migration. We were able to re frame the narrative for the seller around stability and predictability, and that cloud migration was not important for the next potential buyer.
Revealing barriers to entry
A buyer planned to acquire a company in a regulated industry to cross sell its existing products. But the advisors lacked the tech skills to spot compliance gaps. We identified the regulatory frameworks and quantified the numbers upfront. The acquisition went ahead anyway, with clarity on the buyer side.
The moral of these examples is to have an IT expert involved as early as possible. For a deeper discussion on the role of technology in M&A, you can now watch the recording of our M&A and Exit Masterclass. It is a sixty minute session with our panel of experts that brings a clearer understanding of how tech can genuinely make or break strategic exits and high value deals.
M&A and Exit Masterclass
Watch the recording
As ever, this session is shared in the strictest confidence. Viewing is private, and no identifying information is captured.
And if any questions come up beforehand, you’re welcome to contact us for a no pressure conversation, also in the strictest confidence.