Accounting for information technology in corporate acquisitions

Corporate acquisitions have become key elements in strategic planning for many companies. Historically, analysts of corporate acquisitions have emphasized strategic and organizational factors in evaluating candidates for friendly takeovers. Since company data and information technology (IT) are as much a management resource as are the financial and human resources for the combined firm, the authors propose that IT fit should be explicitly considered in analysis of corporate acquisitions. An assessment of IT fit will refer to the IT environments of the two joining firms, the IT contribution each firm can bring to the combined firm, and the role that IT should play in negotiating the acquisition price and in integrating the joining firms.