To complete an acquisition successfully, you need to overcome challenges in a number of areas including:

  • Organization and personnel
  • Business culture
  • Communication
  • Business processes and procedures
  • Information Technology

Impending technology challenges post-acquisition can be very difficult to navigate and overcome successfully, because there are usually multiple business systems at both companies. Here is a suggested way to deal with these challenges in a three-step approach.

DETERMINE WHAT YOU HAVE FIRST

You won’t be able to understand the impending technology challenges unless you know what software applications are being used and the reason for their use. This may seem an obvious and easy thing to do if you only consider the traditional software applications. What is not obvious or easy to do is to determine the off-line applications being used.

Over time most companies have employees who develop off-line applications for a variety of reasons such as:

  • The legacy system doesn’t give them the information they want or in the form they like to see it.
  • The widespread availability and ease of use of commercial applications like Drop Box, Outlook and Google Mail.

It’s important to understand what the off-line applications are used for and why, otherwise you might not fully understand the business information requirements.

Whether it is a traditional software application or off-line application make sure that you understand what it is used for and how it is used, taking into consideration the business information needs of the acquired company.

SELECT THE BEST TECHNOLOGY SOLUTION

Keep an open mind when considering technology solutions. The best solution may be the legacy software platform of the acquired company, an entirely new technology for each company or no change in technology at all. The choice of technology should also take into consideration whether the applications are cloud-based and premise based.

The choice of technology needs to be based on the business needs of each company, and the degree to which the business systems will be integrated. The level of integration should be determined by how similar the businesses are and the expected level of intercompany activity. A higher level of integration makes more sense the more similar they are, and the more intercompany activity expected.

BUSINESS SYSTEMS PLAN

Now that you understand what you have and selected the best technology solution, you should put together a plan to implement the changes envisioned. The plan should take into consideration the level of integration envisioned and whether you want to do everything at one time or migrate over time. Before you implement the plan make sure that you have cleaned up data files and synchronized numbering schemes throughout the companies.

You may for a variety of reasons decide to keep each company operating on their respective legacy systems and simply overlay a consolidating software application to pull data for consolidation and reporting, and increase the level of automation of some applications to increase efficiency and reduce costs.

In this case you should partner with an experienced software provider that can sync information from virtually any business application, and has experience automating accounts receivable applications.

Lockstep Collect is a leader in cloud-based and premise based software solutions for consolidating data from disparate business systems and automating accounts receivable processes.

If you would like to learn more about how you can benefit from consolidating software and accounts receivable automation, please contact Lockstep Collect at www.lockstep.io.