Companies grow in two ways; expanding either organically or through acquisition. Organic growth is the process of business expansion due to increasing your overall customer base, increased output per customer, new sales, or any combination of the above. It could also include opening a new branch office to reach customers you cannot service easily today.
Mergers and Acquisitions (M&A) could be considered inorganic growth. As a corporate strategy, an acquisition can help you grow more quickly, either within your current industry sector or by entering into a new field that could be complementary to your existing business.
Sometimes the soft costs of M&A are difficult to determine, but they still need to be considered and documented. For example, you may need to determine how you will integrate the technologies of multiple companies to be complementary and provide a smooth transition for your customers. Using a single ERP system across all units looks good on paper, but is it feasible from a technology standpoint? What’s the impact going to be to your infrastructure? Can you really support a system globally if that’s required? (Please see another topic on this site that covers Going Global.)
If you’re considering a merger or acquisition, we can help with the technology planning that’s going to be involved. We can assist you during due diligence by either participating with the gathering of pertinent technical information or by creating documents your people should use for obtaining the right technical information for later decision making. We can also help you after the fact by looking at your processes and helping you define the best path for integrating the business goals, the people and the systems. With our past experience in this area, we can help you do it right the first time. Before you go down the wrong road, set up a meeting with one of our senior consultants. If nothing else, we can help walk you through the questions you need to ask regarding the technology side of the business decision.