Technology is seen as a hygiene factor in most acquisitions. Whether you are buying a company for its customer list, market position or brand, there is always an assumption that you can maintain BAU and expectation that positive changes will realise your investment’s potential. But technology can hold serious pitfalls that can put a significant dent in your acquisition strategy.

At the very least, you want the systems in your target company to run smoothly through the deal and beyond, and for the team to have the tools they need to keep customers happy. Even simply keeping the IT lights on can involve significant costs that need to be factored into your negotiations.

You want your investment to improve your bottom line through increased sales and reduced operating costs. Is the technology you are buying scalable to support your growth plans? Does the target’s operating model match your own, with clear paths for integrating data and processes? Can you find efficiencies in a system that may already be on its last legs – starved of investment as a soon to be divested asset?