#IT M&A

When corporate acquisitions are the subject of public discussion, they usually involve large, well-known companies and takeovers with sometimes far-reaching consequences. Expansion and influence on the market as well as the realization of synergy effects are then often the driving force behind the purchase. However, most company acquisitions do not attract much media attention and mainly concern medium-sized companies. Here, the company purchase is often more of a means to an end and is carried out, for example, in order to make succession arrangements or as an alternative to founding a new company. For buyers, the purchase of a company can be an alternative to founding a new company. The advantage can lie in already existing structures, well-rehearsed processes and a given employee and customer base. But the takeover of a company is also a complex process that can involve many risks and must be well planned and considered.

In mergers and acquisitions of companies, the IT area plays an important but also costly role. Our experienced consultants help you to successfully master challenges even in complex merger & acquisition (M&A) projects. In doing so, we focus on comprehensive coverage of the entire transaction process from an IT perspective, from initial identification and evaluation of opportunities and risks, to support in contract and license management, to stable operation. As a partner, we assume the role of IT M&A advisor with cross-industry expertise in national and international M&A transactions.

Whether the business case of an M&A deal or divestment is successful or not depends on numerous factors. One often underestimated aspect is the design of the Transitional Service Agreement (TSA). Due to complex processes and company-specific dependencies, especially in the areas of IT, HR and finance, the outsourced unit (target) is usually not able to act independently from the beginning (Day1). Especially in the case of group spin-offs, it still needs support from the seller side for a transitional period in order to maintain the business operation. What this support should exactly look like is specified in the Transitional Service Agreement, which is concluded between the seller and the buyer and which usually has a term of about six to twelve months. Anyone who thinks that the parties will surely agree as the transitional time is so short, is mistaken. Our experience shows that a regular transition period, during which the outsourced unit can access the usual services as long as necessary in order to establish their own processes in parallel, in line with the new challenges and goals, is decisive for the successful start into independence and prevents time- and cost-consuming disputes between the parties. So, what shall be considered when designing a successful TSA?