February 26, 2025
Mergers and acquisitions (M&A) are all about maximizing value, but that value can be lost in the chaos of misaligned technology. Information Technology (IT) plays a critical role in ensuring smooth transitions, operational efficiency, and long-term scalability.
Private equity firms and business leaders often acquire small to medium-sized companies with their own independent IT ecosystems. These fragmented systems can create inefficiencies, security vulnerabilities, and operational bottlenecks. Aligning IT services across a portfolio is not just about technology – it’s a strategic move that enhances business continuity, streamlines operations, and ultimately can improve return on investment.
IT is one of the biggest obstacles to post-acquisition success. Common challenges include:
Each acquired company likely has different software, tools, and IT protocols, leading to inefficiencies and communication gaps.
Many small and mid-sized companies operate with limited IT resources, making it difficult to support integration efforts.
Unaligned or outdated IT infrastructures increase vulnerability to cyber threats, data breaches, and compliance risks.
Companies may assume that integration failures happen due to technical issues or unexpected problems that arise over time. However, According to research by Bain & Company, 70% of process and systems integrations fail in the beginning, not in the end. Integration failures are typically attributable to initial mistakes, such as poor strategy, unclear goals, or a lack of resources. Without a structured IT integration strategy, these failures can lead to increased operational risks and inefficiencies.
Scenario: Imagine acquiring three companies, each using a different cloud provider, separate ERP systems, and their own cybersecurity measures. Instead of a unified, scalable operation, you’re managing a patchwork of disconnected technologies. The result? Increased risk exposure, higher costs, and confusion.
A unified IT strategy brings significant advantages:
Standardized IT systems create consistency in workflows, allowing employees across portfolio companies to collaborate seamlessly.
Consolidating IT services reduces redundancies and leverages economies of scale for better vendor pricing.
According to McKinsey & Company, companies that effectively consolidate IT services post-merger can realize 10-15% in cost savings through standardization and vendor consolidation.
A centralized cybersecurity strategy ensures uniform protection across all companies, reducing risk and simplifying compliance management. This is especially relevant if acquiring multiple companies within the same industry.
Aligning IT services makes it easier to integrate future acquisitions, shortening the transition timeline and ensuring business continuity.
With unified data systems, executives gain better insights into strategic planning, forecasting, and performance tracking.
Scenario: A private equity firm acquires four logistics companies, each with its own IT support and security policies. By implementing a shared cloud infrastructure and central IT help desk, they streamline operations, achieve significant IT cost savings, and enhance cybersecurity across all entities.
Aligning IT services plays a crucial role in maintaining business continuity post-acquisition. Without it, companies risk disruptions, downtime, and inefficiencies. Key strategies include:
A single IT help desk or managed service provider ensures fast, consistent support across all portfolio companies.
Standardizing cloud storage, collaboration tools, and disaster recovery solutions prevents data silos and improves accessibility.
A unified security strategy reduces the likelihood of breaches, ensuring all companies meet compliance requirements.
According to IBM, more than one in three executives have experienced data breaches attributable to M&A activity during integration. A unified cybersecurity framework significantly reduces risk and ensures compliance.
Scenario: A private equity firm merges two healthcare providers, both using different patient management systems. By implementing a unified cloud-based solution, they improve data access, enhance security compliance, and minimize downtime for medical staff.
Aligning IT services can be complex, but that’s where expertise comes in. Dewpoint helps private equity firms and business leaders optimize their IT environments to drive efficiency and growth. Our services include:
Evaluating the current IT landscape of portfolio companies to identify risks and opportunities.
Offering expert insights and strategic guidance to align IT investments with business objectives, ensuring long-term success.
Implementing vendor-agnostic solutions that align with business goals and deliver flexibility.
Providing continuous IT support, security monitoring, and optimization to keep businesses running smoothly.
Guiding teams through IT transitions with structured change management strategies to minimize disruption and enhance adoption.
Whether you’re dealing with legacy systems, security concerns, or multi-cloud environments, Dewpoint brings the expertise needed to align IT services effectively.
Ready to streamline your portfolio’s IT services? Contact Dewpoint today to learn how we can help you achieve IT alignment and drive post-acquisition success.
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