Global Banking and Finance Review®: February 24, 2023
System Integration is key to successful mergers and acquisitions
As a growing business tool in today’s economy, M&As can function as an essential method for corporate development. With the number of M&As predicted to climb over the upcoming years, a multitude of businesses are searching for ways to improve their M&A capabilities.
The benefits M&As can provide businesses are endless, offering more products and services, and greater financial strength and economic power, leading to a higher market share and reduced competitive threat. They contribute to developing new social and economic environments that can help companies expand into new markets. However, whilst M&As offer a range of benefits, the challenges they produce are important to take note of.
The main challenge
A primary reason as to why M&As can collapse is the failure of establishing a solid IT integration strategy. IT is the main challenge during a merger as each company has…