Merging Systems, Not Just Companies: How to Avoid IT and Data Chaos Post-M&A
By Change & Transformation

Lessons Learned from Major M&A Integrations

Research from Harvard Business Review reveals that 70% of M&A deals fail to realise their anticipated benefits. One of the primary culprits? Technology and data integration failures.

Merging organisations often bring together disparate systems, data structures, and compliance frameworks. Without a clear IT and data integration strategy, businesses risk inefficiencies, duplicated data, security vulnerabilities, and regulatory non-compliance.

So how can organisations avoid IT and data chaos post-M&A?

Pre-Acquisition Data Cleansing and Analysis

A successful IT integration starts before the deal is signed. Understanding the data landscape of both organisations is crucial:

  • Identifying inconsistencies, outdated records, and incomplete data.
  • Standardising definitions to ensure compatibility between merging entities.
  • Establishing a clear data governance framework to manage the influx of new information.

Solution: Conduct a comprehensive data audit and cleansing process before integration begins. Leverage data mapping tools and automated validation systems to ensure accuracy and consistency. Define a single data governance structure that will apply across both entities post-merger.

Multiple Legacy Systems Operating in Silos

Acquiring a company means inheriting its technology stack, which often includes separate ERP, CRM, and other software systems. Without a structured integration plan:

  • Companies struggle with fragmented data stored in incompatible formats.
  • Data duplication and reporting discrepancies lead to inefficiencies.
  • Business leaders lack real-time insights due to disconnected systems.

Solution: Develop an integration roadmap that prioritises system harmonisation based on business needs. Identify core platforms to retain and gradually decommission redundant systems, ensuring minimal disruption. Implement middleware solutions to facilitate data synchronisation between legacy and new systems during the transition.

Lack of a Data Strategy from Day One

Post-merger, organisations must establish a single version of the truth for reporting and decision-making. A fragmented data strategy results in:

  • Delayed financial reporting due to reconciliation across multiple systems.
  • Inconsistent customer data affecting sales, marketing, and service operations.
  • Missed opportunities for cross-selling and up-selling due to unclear insights.

Solution: Implement a centralised data repository or enterprise data warehouse that integrates data from all systems. Use AI-driven data harmonisation tools to standardise and clean data from both organisations. Create clear data ownership and management policies to maintain data integrity long-term.

Regulatory and Compliance Risks

Merging companies often operate in different regulatory environments, each with specific compliance mandates (e.g., GDPR, IFRS, industry regulations). Disparate systems exacerbate risks such as:

  • Data breaches from unsecured legacy platforms.
  • Non-compliance penalties due to inconsistent data governance.
  • Audit complexities leading to financial and reputational damage.

Solution: Conduct a regulatory impact assessment before integration begins. Ensure compliance teams are involved early to align data security, privacy, and reporting frameworks with the new organisation’s structure. Deploy automated compliance monitoring tools to track regulatory adherence across all systems.

Integration Before Rationalisation

Many organisations rush to integrate systems without evaluating their long-term suitability. This approach results in:

  • Unnecessary duplication of IT investments.
  • Prolonged transition periods due to compatibility issues.
  • Higher costs from maintaining redundant systems.

Solution: Perform a full IT assessment to determine which systems should be retained, retired, or replaced. Engage key stakeholders to align system decisions with broader business goals. Consider phasing out legacy systems gradually to reduce risk while ensuring continuity.

Failure to Align IT Strategy with Business Goals

Technology integration is not just an IT issue—it’s a strategic enabler. CFOs, COOs, and CTOs must collaborate to ensure IT investments align with the company’s post-merger objectives:

  • Does the combined entity require a unified ERP or a phased transition?
  • How can data and technology support customer retention and operational efficiency?
  • What cost synergies can be achieved through smarter system consolidation?

Solution: Develop an IT integration plan that aligns with the company’s strategic vision. Ensure IT leaders are involved in M&A due diligence to assess system compatibility and future scalability. Establish clear KPIs to measure the success of IT integration in supporting business goals.

Seamless IT Integration: A Competitive Advantage

A structured IT integration approach prevents costly inefficiencies, compliance risks, and operational breakdowns. By adopting a Statement of Works (SoW) model, organisations can:

  • Clearly define the integration scope and responsibilities.
  • Budget effectively for IT consolidation.
  • Ensure accountability with measurable deliverables.

At Cedar, we specialise in Change & Transformation, helping businesses navigate complex IT integrations with a structured, outcomes-driven approach. Whether you’re dealing with multiple legacy systems, regulatory challenges, or the need for a unified technology strategy, our SoW solutions provide clarity, control, and successful execution.

Contact our experts today to find out how we can support your post-M&A integration and IT transformation needs.