When growing via an M&A strategy, the combination of systems is one of the key considerations leading to synergistic growth. A key part of joining those systems is merging their data, especially the master data. It is critical to include the governance of the overlapping data domains in order to prevent duplication. Just as important as preventing duplication is matching equipment records that require the same maintenance tasks to effectively leverage the synergies that make the combination of entities a good business decision.
If an M&A has time for significant due diligence, one of the key benefits to including the Master Data Governance process prior to sign-off is to validate stated asset values. Bad data during an acquisition of assets or a merger can lead to overpaying for state assets or even worse—paying for assets only to find out that you never got them.
For companies planning long-term growth through Mergers and Acquisitions, an effective Master Data Governance process can build a set of “Golden Data” that can be rolled out to all new business combinations. This can not only speed up the combination of systems, it can also aid in the change management of merging processes and reporting structures.
Rarely do companies concentrating on their M&A combinations have the staff to also manage the merging of the data. Let PiLog Master Data Experts help you complete your data management activities so that you can concentrate on the profitability of the combined entities.