Mergers and acquisitions experience becoming essential for high-achieving CIOs

International mergers and acquisitions (M&As) are becoming an increasingly important area of expertise for top CIOs, reports research from CIO Connect

In a membership survey, 54 per cent of CIO respondents had been involved in up to three M&A transactions with 42 per cent reporting involvement in four or more during their career.

The majority of CIOs surveyed - 58 per cent - said that they should be involved in any merger plan right from the outset, and 46 per cent reported that their organisations already gave them this responsibility in the area of systems infrastructure.

As mergers got underway, 77 per cent took responsibility for carrying out due diligence of the target company, with 81 per cent of CIOs reporting it was also their responsibility to negotiate with any new business over deadlines and budget levels.

When it came to the impact of IT on M&A, CIOs believe they are delivering for the business. Almost half of CIOs (42 per cent) reported IT merger costs accounted for less than 20 per cent of the total M&A integration costs and 54 per cent believed that IT was responsible for delivering at least 20 per cent or more of any post-acquisition benefits.

But the business IT specialists were critical of post acquisition and merger measurements. Although 92 per cent of CIOs said their organisations undertook some form of review to measure the performance and success of M&A IT projects, 19 per cent reported there were no accurate measurements of IT integration costs or post acquisition benefits across the organisation.

Finally, the global nature of M&A became clear with 25 per cent of respondents having been involved in projects in the emerging BRIC economies of Brazil, Russia, India and China, some 19 per cent in Eastern Europe and 12 per cent in other countries.

Image: Forty-two per cent of CIOs surveyed reported IT merger costs accounted for less than 20 per cent of the total M&A integration costs

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