Technical Issues

Incompatible technology is one the most common factors that increases the IT risks in an M&A project because it increases the integration costs. Reducing this risk may involve selecting common single-technology architecture and associated technical solutions. One of the advantages of the single-technology approach will be increased economies of scale. The main disadvantages will be the time required to gain support, resistance to change and delayed implementation. Untested technology is another common IT pitfall in an M&A project and companies that take this approach increase their IT risks. It should be minimised as much as possible. Data migration, system interfaces and scalability are typically underestimated when it comes to meeting agreed timescales and costs.