Assumptions and Reality
In a M&A IT Integration project I worked on the buy-side corporate company was acquiring a business with a few hundred employees. Early assumptions were made regarding how long the integration would take, as the business to be acquired was relatively small, and the larger company had the resources to make things happen quickly. However, assumptions and reality rarely align perfectly and integration challenges soon appeared!
It soon became evident that the acquiring corporation had a much higher appetite for risk when it came to technology upgrades than the smaller business. Yet, there was no formal assessment of either team or how they operated before they started working together. This lack of due diligence set the stage for an integration filled with friction. No Tech DD.
Resistance to Change
To save money and time, the larger business aimed to transition the acquired systems onto newer technology platforms. They were confident in their ability to upgrade operating systems, migrate application platforms, and handle post-implementation support, believing the use of modern software would pose no issues.
However, the smaller business refused to buy into the proposed changes. They challenged every proposal, fully aware that they could leverage ITIL service management best practices and vendor documentation to support their stance. The corporation, unable to argue against industry best practices, was forced to absorb and reintroduce older technology it had previously eradicated from its environment.
Escalation and Disruption
To make matters worse, the acquired business reported what they perceived as ‘reckless’ use of new technology to the joint project board. At this level, such reports tend to create unnecessary drama, rattling cages and escalating concerns beyond their actual severity. This led to further assessments, delays, and increased scrutiny of the integration process.
The ‘Them and Us’ Mentality
Throughout the integration, the teams remained divided, creating a ‘them and us’ dynamic that persisted long after the official Day One integration. The lack of a unified approach and the failure to establish mutual trust resulted in a hostile working environment, undermining collaboration and efficiency.
Lessons Learned
This case highlights the critical importance of thorough due diligence before integration. Understanding the tech, operational culture, risk appetite, and resistance to change within both organisations is essential to avoid unnecessary friction.
Failure to do so can lead to unexpected absorption of outdated technology, prolonged integration timelines, and a fractured working relationship that lingers well beyond the acquisition. Once you’ve completed your DD and deal and want to avoid integration challenges you might want to talk to is about IT Integration.
