M&A – Spektra Analytics

Maximize the success of M&A activities across the IT landscape

The successful execution of an M&A process is contingent on a series of activities, each playing an essential role in achieving a seamless transition. At the same time, unforeseen risks and requirements for operational stability can create challenging conditions for capitalizing on the potential synergies.

Potential for synergies arise from drivers of economies of scale, optimizing sourcing patterns, and capitalizing on discount effects from value-driven license metrics. Simultaneously, potential risks may arise from technical debt, dispersed IT landscapes, opportunistic vendors, etc.

Hence, it is crucial that the realization of potential within the IT landscape follows a proven and diligent process, which assesses risk-mitigating actions and strives to optimize synergies at each step. Spektra Analytics partners with clients to maximize the success of M&A activities across the IT landscape.

Performing
due diligence

Spektra Analytics assists in thorough due-diligence activities for the IT environment, including activities such as; mapping out current IT landscape; identifying vendors in relation to renegotiation deadlines; and assessing primary risks and potential.

Optimal integration and divestment

Spektra Analytics supports clients in optimizing the integration (and or) divestment phase of an M&A through planning for a streamlined IT landscape, assessing and mitigating potential risks, and renegotiating with vendors.

Synergy
realization

Spektra Analytics continuously prioritize the objectives for M&A activities across the IT portfolio – namely, to accommodate growth of organizations on a shared platform and enabling long-term synergy realization.

M&A activities follow a diligent process to mitigate risks and optimize potential

Spektra Analytics drives a diligent process, to identify potential and mitigate risk at every step of the M&A.

Navigating the IT landscape: Key steps in achieving seamless M&A integration

To achieve successful M&A integration, the process starts with a structured review of the existing IT landscape. This comprehensive assessment offers a foundational understanding of the technological infrastructure, highlighting areas of alignment and disparity.

Followingly, insights from the initial review will be leveraged to estimate the potential for synergies. Through analysis and quantification, organizations gain insight into the extent to which consolidation can yield value – in relation to the required efforts for realization. This lays the foundation for planning and determining the to-be state of the consolidated landscape. Accordingly, vendor negotiations are initiated to minimize risk and enable the realization of long-term synergies.

In essence, this structured progression through reviewing the IT landscape, estimating potential, planning the to-be state, negotiating with vendors, and ultimately realizing synergies forms the bedrock of a successful IT-driven M&A integration.

Mitigate risks and enable long-term synergies in M&A

Identify potential for synergies, and prioritize a synergy realization strategy

1. Synergies from economies of scale: Leverage synergies that arise from leveraging economies of scale across organization and vendor landscape

2. Synergies from sourcing splits/purchasing patterns: Optimize sourcing splits based on potential identified during due diligence activities

3. Synergies from discount effects: Capitalize on discount effects from volume-driven license metrics

Identify the core areas of potential risks and strategize actions for risk mitigation

1. Risks from dispersed IT landscapes: If the acquirer and acquiree hold highly differentiated technical landscapes, this may limit the potential for consolidation

2. Risk from metric dependencies: Specific license metrics requiring true-up to cover entire new-co organization may come at significant additional costs

3. Risk from opportunistic vendors: Vendors may react opportunistically during M&As, especially if they risk termination of agreement in to-be New-Co.

Practice area lead:

Frederik Bastkær Christensen

frederik.christensen@spektraanalytics.com