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Information Technology M&A Integration Checklist

IT M&A Integration Checklist
This information technology (IT) M&A integration checklist provides a framework for all necessary tasks that must be completed during integration as it concerns IT. This checklist is tailored specifically to assist practitioners accomplish IT aspects of integration during an M&A transaction.
  • Most suitable during integration planning and execution for complex M&A transactions
  • Includes the typical IT goals and requirements needed for successful M&A integration.
  • DealRoom encourages teams to customize these checklists to accommodate the unique needs of your deal and M&A process.
What Does an M&A IT Integration Playbook Include?
Understanding and conducting the proper requirements in regards to IT during integration is essential for completing a successful M&A transaction. This checklist includes the main IT requirements and tasks needed to ensure that the integration of a target company is adequately conducted, meaning that all IT matters are sorted for the seamless combination of workforces. This checklist serves as a guideline and should be customized to fit the specifics of each M&A deal.

1. Define Day 1 Target Operating Model

This section enables practitioners to thoroughly define Day 1 IT policies, roles, systems, and functions. This is an in-depth checklist to prepare for successful integration across IT operations.
  • Review All Workstream/Function Target Operating Models (TOMs) for Day 1 Systems/Tools Assumptions
  • Identify IT-Specific Processes in Scope for the Transaction per the IT Charter
  • Identify Subprocesses for each IT-Specific Process
  • Define Day 1 IT Organization Design, Roles, & Responsibilities
  • Define Day 1 IT Processes and Policies
  • Define Day 1 IT Facilities/Locations
  • Compile Day 1 TOM Systems Inventory, Ensuring that Overall IT Architecture, IT-Specific Systems/Tools, and All Systems from Workstream/Function TOMs are Included
  • Conduct Cross-Functional Validation to Ensure Day 1 Target Operating Model and Systems Inventory Assumptions are Consistent and Viable, Paying Particular Attention to Facilities Assumptions for Network/Telephony Ramifications
  • Based on Target Operating Model, Define Integration Program Exit Activities/Milestones

2. Address Roadmap, Staffing, and Budgeting

Successfully integrating IT functions require addressing budget structures, determining staffing models and creating appropriate roadmaps for initial responsibilities post close. This section should be customized to your specific IT functions but provides a standard template.
  • Determine whether IT Budget will be Centralized or Dispersed Among Teams
  • If IT Budgeting is Dispersed, Prepare and Disseminate Protocol and Timeline for Submitting Budget Line Items, and Carefully Review Submissions for Completeness
  • Review Overall IT Roadmap, Postpone All Non-Critical Roadmap Projects to Allow Acquisition Focus
  • Alongside Integration Leadership, Determine IT Program Staffing Model Considering all TOM Requirements, Scope, and Timing Needs
  • Compile Overall IT Program Budgeting in Accordance with Guidelines Established by Integration Leadership, Adding Contingency Commensurate with Integration Uncertainty, i.e. 15-20% Initially, Reducing with Iteration When Possible

3. Address IT Organization Design, Processes, and Policies

Design any new IT jobs and onboarding processes as well as any new or altered policies, performance metrics or training requirements. This section will need extensive assistance from human resources to ensure successful implementation.
  • Draft Any New Job Descriptions and Get Approval from HR
  • Ensure All IT Onboarding Requirements Addressed by Program-wide Onboarding Plan, Fill Gaps if Needed
  • Document New/Altered IT Processes, Including Controls
  • Document New/Altered IT Policies
  • Identify and Address IT Training Requirements for Day 1
  • Address Departmental Performance Measurement and Incentives

4. Address IT Facilities Requirements

This section ensures that all required facilities are designed and ready for Day 1 implementation, this includes office space, inventory and technology.
  • Ensure Facilities Plan Aligns with IT Organization Design Including Seating, Conference Rooms, and Auditor Facilities
  • Ensure Facilities Plan Accommodates Overall Day 1 Systems Inventory, Including Network, Telephony, Bandwidth, Storage, Mobility, Etc.

5. Establish Data Stewardship & Execute Data Activities

It is essential during any type of M&A transaction that important data is organized, assigned stewardship and securely stored. This section ensures that data activity is accounted for during the integration process.
  • Using Systems Inventory, Prepare Corresponding Data Inventory Indicating: System Owner, Data Owner, Data Type, Corresponding Seller System and System Owner, Corresponding Seller Data Owner, Date Data is Due from Seller, and Delivery Method/Format for Data Provision
  • Identify Whether Any Items on the Data Inventory Require Additional Governance, i.e. Review by Corporate Development, Finance, or Legal
  • Identify RACI for Data Cleansing, Mapping, Migration, Testing, and Archiving
  • Assign Data Stewardship Role(s), Assessing the Data Inventory, Data Governance Requirements, and RACI for Data Cleansing, Mapping, Migration, Testing, and ArchivingEstablish and Communicate Data Stewardship Protocols and Governance Processes
  • Complete Data Cleansing-Testing and Data Archiving Programs as Designed

6. Address Information Security

It is vital to consider and address security concerns, protocols and safeguards before Day 1. Follow this checklist to ensure important tasks are not forgotten.
  • Review Diligence for Information Security Protocols at Counterparty
  • Based on Day 1 Target Operating Model, Assess Whether Any Security Concerns Will Exist and Require Remediation.  Include Mobility, BYOD.
  • Develop and Implement Remediation Plan for Any Identified Security Concerns

7. Address Employee Enablement

This portion of the checklist provides tasks essential to employee enablement within the IT department or function. This includes employee roles, system access requirements, employee devices, and department policies.
  • Review All Target Operating Models for Employee Roles, Responsibilities, and Locations
  • Determine System Access Requirements
  • Alongside HR, Develop a Plan to Set Up Employee Master Data/Employee IDs and Email Addresses
  • Determine Whether Employees Will Receive New Devices, Considering Security Image, Licensing, and Help Desk Continuity
  • Determine Protocol for Legacy Email and Hard Drive Migration, Consulting Legal and HR
  • Develop Consolidated IT Policies and Procedures, Including Help Desk
  • Alongside Change Management, Communications, and HR, Deliver Communications and Training re IT Employee Enablement

8. Address Hardware, Software, and Licensing

Determining hardware, software requirements and system inventory as well as license agreements during integration planning creates an easier integration process post-close.
  • Determine Hardware and Software Requirements as Indicated on TOMs and System Inventory
  • Assess Additional Hardware and Software Requirements for Overall IT Infrastructure/Architecture/Information Security
  • Assess License Agreements for Items Transitioning from Counterparty to Determine Conveyance in Acquisition
  • Assess Existing Acquirer License Agreements for Adequate Coverage to Accommodate Acquisition Scope
  • Acquire Additional Licenses as Needed, Advising Corporate Development, Finance, and Integration Management of Costs

9. Address Development and Implementation Requirements

Once systems, tools and licenses are determined integration practitioners must ensure all requirements are met for proper implementation such as preparing technical design and acquiring the proper frameworks.
  • Determine Development and Implementation Requirements as Indicated on TOMs and System Inventory
  • Acquire Any Systems/Tools/Licenses for New Implementations
  • Gather Functional Designs for Implementations/Development Objects/RICEFs from Stakeholders, Ensuring that Functional Designs are Provided for Each Such Item as Indicated on TOMs
  • Prepare Technical Designs for All Items
  • Build/Test/Deploy All Items, Ensuring that Day 1 Testing Includes All Migrated Data and Locations Prior to Day 1 Go-Live

10. Address Retirements

It is also important to evaluate the target company’s IT systems and inventory as a way to develop the IT integration plan as well as measure compatibility. You will also need to develop a retirement plan for each system the target company uses that will not be carried over.
  • Compile Counterparty System Inventory
  • Evaluate Counterparty and Acquirer System Inventory for Systems to be Retired Based on Day 1 TOM
  • Develop Data Retention and Retirement Plan for Each System to be Retired
  • After Obtaining Sign-Off from Data Owner, Archive System Data
  • Once Data is Archived, Obtain Sign-Off from System Owner for Final Retirement
  • Disable System and Terminate Licensing and Support

11. Program Exit

A program exit strategy provides the means for practitioners to clear dependencies, document lessons learned and plan for future transactions. This will also ensure the longevity of successful integration and value creation by outlining an exit strategy for the organization’s leadership.
  • Document Achievement of Integration Program Exit Criteria
  • Ensure All Critical Dependencies on the Project Plan Have Been Cleared
  • Document All Lessons Learned and Participate In Program Lessons Learned Readout
  • Archive All Program Documentation for Use On Future Transactions
  • Request Permission for Transition to Run-The-Business from Integration Leadership
  • Get Business Owner Sign-Off for All Remaining Transition Tasks
  • Notify Integration Leadership, Change Management, and Communications of Exit and Provide Run-The-Business Points of Contact

Can I change or add new requests in this checklist?

Every M&A deal presents unique and different challenges, especially as IT requirements and functions are concerned. Downloaders are encouraged to edit and make these checklists their own by changing the provided information to better fit their needs.

Does this checklist provide all necessary IT integration information?

This IT M&A integration checklist was created by and for M&A professionals. It includes a comprehensive starting point for any integration process. However, every deal is different and may require additional requirements and tasks.
Easily Execute IT M&A Integration with DealRoom
DealRoom is a project management solution and virtual data room for complex financial transactions. DealRoom enables increased collaboration, efficiency and value creation by providing a centralized platform in which practitioners can organize and complete tasks essential to due diligence, integration and deal success. By conducting all aspects of integration through DealRoom's m&a integration software, practitioners can securely store important documents, collaborate on requirements, communicate more easily with third parties, and establish priorities.
How to use the template with DealRoom:
  • Download the template from DealRoom’s website
  • Open a room within DealRoom
  • Go to the Requests tab and select “import”
  • Import the downloaded template

The Requests tab is automatically populated with the requests from the IT M&A integration checklist. Users can begin assigning, adding to, and completing necessary tasks.

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