Tech Mergers & Acquisitions

IT is a critical issue in M&A transactions and key in investors’ investment objectives. This is why successful M&A transactions go hand in hand with carefully planned and managed IT activities to ensure business continuity, identify and mitigate risks and finally achieve synergies and create value.

Our dedicated Tech M&A team are market-leading deal advisers who have supported clients on many transactions across sectors, geographies and throughout the deal lifecycle. We mitigate risk, protect value and identify opportunities during a transaction.

We support you across the entire deal cycle:

pre-deal phases (IT carve-out assessment, buy-side due diligence & vendor-side due diligence, synergy assessment, deal execution)
post-deal phases (integration & separation management office)

We deploy proprietary methodology, digital tools and technology specifically designed to accelerate transaction timelines, identify and mitigate risks earlier in the deal process and ultimately improve deal value.

Ines Michel-Leitao

Director, Digital Transformation

KPMG Switzerland

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Your challenges - our solutions

We have developed specific capabilities to guide you through the critical phases of your transformation journey:

Pre-deal phases

Our experts support the pre-deal phase of M&A transactions by performing thorough due diligence. We manage the data collection required to perform an “as-is” analysis which in turn helps identify synergies and risks. In addition, we assist in preparing a high-level integration roadmap and estimate the associated costs.

IT carve-out assessment: separation planning and strategy
Buy-side IT due diligence and vendor-side due diligence:
- manage data collection and As-Is analysis
- assess risks & feasibilities
- create high-level Integration roadmap
- estimate costs
Synergy assessment: identify potential synergies
Deal executionprepare Day 1 readiness:
- define To-Be IT Target operating model and related IT solutions, services and organization
- implement the agreed Day 1 solutions & services

Integration management office

To carry out your integration plan, KPMG provides integration management services. We establish governance by developing frameworks combining companies’ respective IT policies and procedures. Additionally, we identify and monitor the processes and initiatives required to ensure desired end-states.

IT governance and approach: develop a common integration framework that outlines the combined companies’ IT policies and procedures
IT blueprint & operating model:
- identify the IT-related processes and initiatives (for example, ERP platform rationalization and data center consolidation) required to achieve end-state plans
- align cost and revenue synergy plans with end-state business capabilities and need
IT integration planning:
- develop an integration roadmap and key milestones
- prepare detailed Day 1 execution plan
- develop synergy plans and one-time cost estimates
Day 1 / post-day 1 execution: identify, track and monitor realization of cost synergies

group holding meeting - bird view perspective

Separation management office

Our experts support separation management by identifying the functional dependencies between systems and implementing the initiatives required to enable standalone IT operations. Moreover, we provide sourcing support for the services required under the transitional service agreement (TSA).

Preparation and data gathering:
- define the approach, including initial high-level IT separation planning
- identify the functional dependency between entities (e.g. systems, processes)
Day 1 readiness: implement the IT separation initiatives required to enable stand-alone operation of the carved-out business unit(s) on Day 1
TSA exit plan: provide any services under the transitional service agreement (TSA) as well as transition activities required to hand over responsibility for all IT services to the buyer of the carved-out business unit(s)

IT – a key asset in M&A

Amid rapid technological advancement, the role of tech has shifted from a function supporting backend operations to the backbone of an organization’s business operations.

Against this background, buyers and sellers in the M&A space must also consider the increasingly crucial role that IT plays in transactions.

Learn more on the involvement of IT in deals

Your partner for every step of the journey

To be successful, these programs require a partner who is invested in every phase of the journey.

At KPMG Switzerland, we have a team of professionals with a wide range of experience across all industries, to help you make the most out of your M&A transactions across the whole deal cycle.

Through our experience in multiple integration and separation transactions, we have identified key factors for successful deal execution. Download our summary to learn more.