How the CTO can help avoid the “buyers curse” in M&A. Four steps a CTO can take to maximise the value of acquisition synergies.

Alan Moore

Food and beverage is the nation’s largest manufacturing sector. With the need to become more efficient, companies are looking to find ways to extend their product portfolio.

Acquisitions may increase the product range or geography, or help access innovation and new capabilities or achieve scale with the multiples. But whatever the logic going into the deal, the outcome is often not what is expected. Much of the research confirms the so-called “buyers curse”. Shareholder value is too often destroyed – the winners are the sellers and the buyers discover they have paid too much and cannot – or do not – realise the synergies that are needed to justify the acquisition premium.

As much as 60% of the anticipated acquisition synergies relate to IT initiatives and are dependent upon systems integration. This means the CTO role is central to successful acquisitions.

Our white paper on the CTO’s role in maximising the value of acquisitions outlines the four key steps for success and the key roles the CTO needs to be involved in. Read the paper here.

Sapace

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