[MUSIC PLAYING] Hello, and welcome to this Q&A on the role IT integration plays in a merger and acquisition, brought to you by Quest Software, the go-to experts to help move, manage, and secure your entire Microsoft environment. We're here with Senior Product Marketing Manager, Jennifer LuPiba. So, Jennifer, why is IT integration so important to the success of a merger, acquisition, or divestiture?
Yeah. Well, first, it's important to understand that these types of M&A activities are based around three motivators-- expanding the customer base, diversifying products and services, and acquiring technology. So an awful large sum of money is fronted to buy another organization, and the investors and the stock market, they want to see significant cost synergies. In order for organizations to meet those expectations, IT integration has to happen, getting employees of different organizations working together.
So how much cost synergies are expected from an M&A's IT integration?
Yeah. The impact is huge. According to Deloitte, 50% of M&A cost synergies come from IT integration. Fact is that corporate executive teams are counting on IT to deliver over half of their intended M&A goals. It really is an amazing career opportunity. But it's extremely stressful because an increasing number of executives and private equity firms state that half of their M&A deals fail and gaps in IT integration are to blame for a large portion.
Ah. Good to know. So where can someone go to learn more?
Yeah, well they can watch the next short video in this series, where I'll address M&A failures, how to improve IT integration, and why no IT manager is safe from upcoming M&As. Or they can simply visit Quest.com/Mergers-and-Acquisitions to learn how Quest Software helps organizations build a repeatable software and services framework for M&A IT integration.
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