Mergers & Acquisitions and Divestments & Carve Outs

Mergers & Acquisitions and Divestments & Carve Outs

Purple Square Management Partners have vast experience in managing programs to change information systems in cases of Mergers & Acquisitions (M&A) and in cases of Divestments with subsequent IT Carve Outs.


For M&A the challenge is often about creating a strategy for the new IT system landscape after the M&A. This typically leads to questions on data definitions and migrations and business process harmonization after which the new system must be created. The new system can be build from scratch (greenfield) or one of the existing systems serves as the target system for the future.


In case of IT Carve Outs there are many angles to cover. There often will be centralized global systems that require a centralized approach and local systems that can be handled locally (but should not be underestimated). The centralized systems cannot just be copied for the divested firm. In a copy scenario it must be clear "what" will be copied (e.g. business data from the parent company may not be copied) and "how". For example: SAP would allow for a system copy, a client copy or a scenario where company codes are being re-used. All three scenario's have major differences in complexity, cost and risk.

© Purple Square 2021 All rights reserved.