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Value creation through M&A and divestitures

  • Rising transaction volumes after crises, low interest rates and a trend towards digital deal execution are catalysts for increasing activity in the M&A market environment

  • Frequently, hoped-for synergies cannot be fully realised because an analysis of the IT and the resulting compatibility of the IT systems is carried out too late or only inadequately

  • We cover the entire value chain of M&A transactions and focus on IT analysis in the context of strategic evaluation, IT due diligence and post-merger IT integration

Insights

Reference items
Blogpost

IT due diligence for M&A deals

Konsolidierungen durch Fusionen und Übernahmen (M&A) nehmen in der Finanzbranche als Folge extern getriebener Umstrukturierungen weiter zu.

21st April 2020

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Reference items

Expert EN M&A Devisture - Fabian Meyer

Fabian Meyer
Managing Partner
Fabian
Meyer

Fabian Meyer is Managing Partner at CORE and responsible for international business development. Fabian is responsible for the implementation of complex IT projects with a focus on digitalization p...

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Fabian Meyer is Managing Partner at CORE and responsible for international business development. Fabian is responsible for the implementation of complex IT projects with a focus on digitalization projects in the banking sector. He has several years of consulting experience in the banking sector and in transformation technology. His experience relates, among other things, to the support of various mergers & acquisitions in the financial sector, the implementation of carve-outs in the technology sector and the execution of company valuations and investments in start-ups.

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Expert EN - Christoph Kurtzmann

Christoph Kurtzmann
Transformation Director
Christoph
Kurtzmann

Christoph Kurtzmann is Transformation Director at CORE. He has a degree in business psychology and coaching. Christoph focusses on project leadership of complex IT transformations in the context of...

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Christoph Kurtzmann is Transformation Director at CORE. He has a degree in business psychology and coaching. Christoph focusses on project leadership of complex IT transformations in the context of M&A activities by supporting our clients in managing sales, carve-out or acquisition projects and developing solutions for successful implementation.

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Expert M&A Devisture EN - Dr. Philipp Kleine Jäger

Philipp Kleine Jäger
Managing Partner
Dr. Philipp
Kleine Jäger

Dr Philipp Kleine Jäger is Managing Partner at CORE and leads the strategic development of IT architectures. After studying materials science, he completed his doctorate in electrical engineering ...

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Dr Philipp Kleine Jäger is Managing Partner at CORE and leads the strategic development of IT architectures. After studying materials science, he completed his doctorate in electrical engineering at the Karlsruhe Institute of Technology. He has extensive consulting experience in the areas of entrepreneurship and innovation management, with a focus on complex IT architectures. His main areas of expertise include complex IT due diligence processes and the review of mergers and carve-outs with regard to IT architectures.

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Market situation in M&A and Divestitures

 

The motivations behind merger and acquisition activities and the associated growth are manifold. Often, increasing competition in an increasingly complex and global market environment is the reason for wanting to expand one's competitive advantage by adding complementary competencies in breadth and depth. Rising transaction volumes after crises, low interest rates and a growing trend towards digital deal execution are further drivers of increasing activity in the M&A sector.
The cause of challenges in the aftermath of transactions is often an insufficient focus on integration efforts both in the (pre-) deal phase and in the post-merger phase of the M&A process. To counteract this, it is advisable to initiate the integration phase at an early stage in the overall process, rather than waiting until a signing. This includes a thorough analysis of the initial technological conditions in both companies involved, a selection of a suitable integration approach and a detailed planning of the integration project. In our experience, carrying out IT due diligence at an early stage of the analysis phase is an aspect of an M&A transaction that is often ignored but critical to success. The consequence of underestimating the technological due diligence is often a lack of synergy effects.
We support our clients with in-depth professional and industry knowledge combined with strong process expertise to fully exploit the potential of a transaction. We cover the entire value chain of M&A transactions, from strategic preparation to process support and post-merger integration. Our strengths lie in the areas of IT strategy, IT due diligence and post-merger IT integration. This means that the transaction process is professionally accompanied and the hoped-for synergies are reliably realised.

 

How we approach challenges

 

With proven frameworks for the complete process of an M&A deal, especially for IT due diligence and post-merger integration, we offer a hollistic review of the technological fit with the target and accompany our clients in the successful IT integration in the deal execution and post-merger integration phases.
In order to address challenges regarding IT integration in the post-merger integration phase, we rely on the PEC approach: Plan - Execute - Control.
To ensure a successful transaction, we provide support with technical and methodological expertise. Technology-oriented companies in particular benefit from the consideration of the technical aspect of a potential acquisition or merger.

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