Tax reform, a more relaxed U.S. regulatory climate, and growing cash reserves have fueled optimism among U.S. dealmakers, Deloitte found in its 2019 M&A trends report. In fact, 79 percent of corporate and private equity executives focused on mergers and acquisitions (M&A) surveyed expect the number of deals they close in the next 12 months to increase, up from 70 percent last year.
As the global economy continues to grow, the market is ripe for M&A activity and it can play an important role in long-term business growth strategy. There are countless factors to consider when evaluating an offer or in the aftermath of closing a deal, but don’t make the mistake of letting IT strategy fall to the bottom of the list.
The reality in today’s digital world is business growth potential is only as strong as the tools and resources powering your organization—your enterprise technology. Don’t wait until an M&A deal is underway. In fact, a bloated IT infrastructure can devalue an organization and delay any potential investment. The time to optimize your IT infrastructure is now.
But where do you start? Here are three immediate steps to take to prepare your IT infrastructure for M&A and business growth:
- Centralize. One of the biggest challenges IT departments face is a lack of visibility into their technology assets, who is using them and how they’re being utilized across the organization. Further, many IT functions operate in silo, creating unnecessary repetition and a lack of strategy alignment. In order to lay a proper foundation for IT infrastructure, IT departments must centralize technology assets for a singular, holistic view.
- Comprehend. Once you’ve centralized your resources, a critical next step is the ongoing auditing of the ways in which your organization is using its technology assets and the value they bring to ensure you aren’t overspending on technology that isn’t integral to the bottom line. IT leaders must evaluate the enterprise technology environment to ensure they’re mapping back to business strategy.
- Control. This is about getting more mileage out of your IT budget. By keeping a close watch on enterprise technology resources, organizations can make real-time adjustments to avoid getting hit with extra fees and freeing up extra capacity for future needs. By achieving a better grasp on overall technology expenses, you can maximize your overall investment.
Acquiring a company or merging with another organization is an exciting component to ensuring long-term business growth for your enterprise. But you don’t have to wait until a deal is imminent to start optimizing your IT infrastructure for change or growth. Start now, by centralizing, comprehending and controlling your technology resources. To learn more, visit https://www.tangoe.com/platform/.