The CIO Priorities That Make or Break Consumer Goods M&A

Cybersecurity considerations

West Monroe’s Kenworthy expands on that, saying that when mulling what to include from an acquired company’s tech stack, decisions become clearer when looking at its cybersecurity posture. “Portfolio rationalization is a careful balancing act between driving efficiency and managing the organization’s tolerance for technical debt. In some areas, trade-offs can be made — but cybersecurity is no longer one of them.”

There’s growing awareness, especially in private equity, that cybersecurity must be a non-negotiable priority, he adds. “Announcing an acquisition often puts a target on the acquiring company, and too many firms have learned the hard way that underinvesting in cyber can lead to significant pain and cost post-close.”

Weighing technical debt versus a firm’s modernization status is an important consideration, echoes Ross. “That influences your decision tree. If I’m further down the modernization route, some of these [system integration] decisions become easier.”

Cybersecurity diligence is basically table stakes at this point for any company, he notes. When evaluating potential consolidation targets, CIOs should rely on experts — internal and/or external — to help them understand where the risk is from a cybersecurity, privacy and compliance perspective. 

The key is figuring out what they need to be worried about on day one post-acquisition in a zero-trust mindset, Ross stresses.

AI’s role in accelerating the integration process

Of course, AI can play a significant role in tech considerations during a merger. Data and AI tools can create efficiencies in the integration process through advanced analysis and learning, Bernecker says. This will help IT leaders and teams understand the full inventory of both tech stacks. 

“Together, they can showcase duplicate tools/software and provide context into how each technology system is working,’’ he says. “During the M&A process, teams may be working against accelerated timelines. AI and data can allow teams to digest information quickly, helping them make informed decisions faster.” 

AI offers significant value-add in its ability to accelerate data consolidation, mapping, cleansing and de-duplication early in the integration process. 

“AI and data insights have changed the decision-making calculation,’’ Kenworthy says. “Increasingly, we’re seeing that key business objectives — such as improved financial reporting and operational efficiency — can be achieved through targeted data and AI strategies.”

These tools also reduce reliance on large-scale system overhauls by enabling faster visibility into performance and more agile integration pathways, he adds. The key is using AI not just as a tool, but as a strategic enabler for faster, more intelligent merger integration.

How IT can shine 

Capital discipline should be a guiding force for CG leaders, says Ross. “This is an industry that’s under a lot of pressure. Increasingly, tech leaders need to have that business view … when we’re making our capital allocation priorities.” 

He acknowledged that while CIOs may not naturally focus on this, their elevated role means they should pause during M&A to ask why they’re doing this and how can they help. That mindset, paired with a repeatable framework, increases the chances of long-term success.