The role of information technology systems in the performance of mergers and acquisitions

Mergers and acquisitions (M&As) are an important tool for improving a firm's competitive positioning and performance. Despite M&As’ promise, however, they often fail to meet performance goals. Challenges often arise when managers try to integrate two companies’ information technology (IT) systems, and the difficulties encountered often create both short- and long-term performance problems for companies. To help address these challenges, we highlight important issues that managers involved in M&As must consider. We also present some best practices that managers should follow to improve the odds of successful IT integration.