It's no secret that today mergers and acquisitions are an extremely active part of the accounting profession. These combinations are due to numerous reasons, with retirement, leadership and growth at the top of the list. As owners reach retirement age, they are looking for an exit strategy. At the same time, growing firms are looking for merger candidates to gain clients, to gain access to needed staff skills, or to establish a presence in a desired market location. With a marketplace like this of buyers and sellers, it's no wonder there is plenty of activity!

Unfortunately, far too often, the M&A process is conducted in tight secrecy, with only a privileged few aware that the acquisition is even being planned, let alone the timelines and agreed-upon conditions. In this scenario, it's not unusual for the IT staff of the gaining firm to be told, "We're bringing in 20 new people next week. Get them set up and ready to work." While this might be a slight exaggeration, it is closer to the truth than many might believe.

A far more productive approach is a proactive one in which IT leadership is involved early in the planning process. After all, other than people, IT infrastructure is the largest investment for most firms, and is a critical strategic asset for firm innovation and growth. Early and detailed IT planning can make a merger or acquisition unfold smoothly and productively for all concerned.

The Boomer Technology Circles, an organization of over 100 technologically progressive firms, has been the forum for a number of lively discussions on this topic. The rest of this article will draw upon those experiences, and capture some best practices and lessons learned in M&A planning.

Don't expect to get this information from M&A consultants. This information may cause you to rethink the importance of technology in any deal, especially in today's environment, where technology is an integral part of all services. Technology is part of a firm's culture - either they view it as a strategic asset or as overhead. Technology may change or even become a deal-breaker in some transactions.

KEY CONSIDERATIONS

Planning from an IT perspective should begin as early as possible in the process. Many firms have found it useful to establish a transition team (in both firms) and to have counterparts on each side communicate important details at a level appropriate for each.

Areas of investigation and discovery often include:

Hardware: Examine the age, brand, model and configuration of key hardware elements in use in both the acquiring and the acquired firm. This examination should include file servers, related networking gear, desktop and notebook computers, and, most recently, cell phones and PDAs. Many firms have found that a "rip and replace" approach is least costly in the long run. Regardless of the age and condition of the acquired firm's equipment, support burdens are reduced when that equipment is replaced with the standard in place at the acquiring firm. This facilitates "ghosting" machines with a standard application image and simplifies periodic updates with patches, service packs and security enhancements.

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