IT as a driver of M&A success

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Businesses can no longer ignore IT or view it as a back-office function if they want to achieve maximum value.

Businesses today are under more pressure than ever to deliver value to stakeholders, particularly when undertaking mergers, acquisitions or asset disposals. Under the current economic conditions, management teams will require additional effort in streamlining operations of acquired businesses to deliver success in the absence of financial engineering.



Key facts

  • 47% say that more detailed IT due diligence could have prevented value erosion.
  • Only 38% of corporate and 22% of private equity respondents say they put a significant emphasis on IT as part of their approach to transactions.
  • 20% of respondents recognized IT as one of the most challenging areas to deal with post-transaction despite the significant potential for lost value.


IT is fast becoming a key lever which management can use to deliver operational benefits and to drive deal value. In fact. all the strategic initiatives behind a transaction rely on IT and businesses can no longer ignore IT or view it as a back-office function if they want to achieve maximum deal value.

EY and Mergermarket have surveyed 220 senior corporate and private equity executives across Europe about the role of IT in the transaction process. Through our interviews we found that IT can be a leading vehicle for growth and value creation if leveraged effectively. However, despite the considerable upside, executives too often place inadequate focus on IT leading to value erosion or even deal failure.

Our survey highlights the opportunities in leveraging IT to drive success in mergers and acquisitions (M&A). We also reveal the challenges and risks that IT can present in the transaction process, which is evidenced by in-depth feedback from the respondents.

Companies are increasingly pushing the boundaries to remain competitive. IT is one key area to do this & businesses need to view IT as an enabler rather than a cost center.



“Integrating systems can be an especially difficult task, and it is very important for processes to work. Working as a new company, everything is different, including customer care, and if you have a combined market approach, such processes have to be aligned on day one.”

— COO, leading European IT services provider



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