4 merger and acquisition network integration challenges

Between January 2019 and March 2020, there were between 130 to 178 domestic and cross-border mergers and acquisitions (M&As) by UK companies each month. These are major undertakings for any organisation, but they are full of promise if conducted correctly.

Typically, the focus of the integration is around people and process, but the technology aspects must not be overlooked. And corporate networks are a major component.

The end goal of the enlarged organisation is normally to integrate the existing networks, so that all previous systems and data can work and communicate with each other easily. Making this happen can be complex: data must be integrated and/or migrated securely, access control must be properly defined and users must be securely administered.

This post outlines the key obstacles during an M&A network integration, the solutions to those challenges, as well as how to get the help and support you need along the way.

Four common network integration challenges 

Although there are a range of different complexities in the network integration process, along with varying requirements unique to each organisation, there are four common challenges that apply in most cases:

1) Systems integration: each business involved in an M&A integration will have its own legacy systems in place, and there is no guarantee that these systems will be compatible. This extends beyond the applications that the respective workforces use every day. Hardware, infrastructure have to be taken into account, too.

2) Integrating data: just as systems need to be evaluated, so too does  data, in terms of volume, formats and sensitivity. The project team overseeing the network integration must have visibility of all data and be sure that there are no confusing overlaps; failing to do so can easily lead to data breaches that can affect the entire merged system.

3) Understanding infrastructures: a successful network integration team will have a full knowledge of all the IT infrastructures and devices involved, so that they can complete the process smoothly and quickly. Without establishing this at the start, unexpected delays and problems can crop up, generating significant extra time and excessive costs.

4) Security: all of the points above come with their own security implications that can make the process especially complex and hazardous. Research from Forescout found that more than half of those polled encountered security incidents during the M&A process so big that they jeopardised the entire deal. With a greater threat surface, bigger networks that come with larger mergers and acquisitions are at particular risk.