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.