Navigating M&A from an IT Perspective: Insights from Industry Experts
On December 4, 2024, Lingo Systems brought together two powerhouse speakers for a deeply insightful webinar on mergers and acquisitions (M&A) and the unique IT challenges they bring. Britta Aagaard from Semantix and Olga Blasco from Lion People Global shared their experiences and advice in a lively conversation that explored how companies can navigate the complexities of innovation, integration, and valuation in M&A.
M&A is always a big move for any company, and the IT side of things can make or break the whole process. During the webinar, the speakers didn’t just scratch the surface—they delved into the nitty-gritty details, sharing lessons and stories that resonated with the diverse audience. Let’s revisit the key insights from this vibrant discussion.
Innovation at the Heart of M&A
Innovation often plays a starring role in M&A. Companies that can offer unique, problem-solving technologies stand out to buyers. But what does it really take to turn an idea into something that adds value? Britta and Olga explored this with stories from their own careers and the broader industry.
It starts with identifying a gap in the market—a need or challenge that existing solutions don’t quite address. Once you’ve pinpointed the problem, customer feedback becomes your compass. Britta shared how, in her experience, businesses that thrive know how to listen closely to what their customers want and build with that in mind. Olga echoed this, adding that without aligning a product to a real demand, even the most sophisticated technology can flop.
There was also an important reminder here: focus matters. As tempting as it is to chase every shiny opportunity, companies need to ensure their innovations align with their long-term goals. Otherwise, they risk pouring resources into something that doesn’t pay off.
Building Proprietary Technology: Worth It or Not?
One of the most debated topics was whether companies should build their own technology or stick with existing solutions. It’s a question that doesn’t have a one-size-fits-all answer, but Britta and Olga laid out some helpful considerations.
For many Language Service Providers (LSPs), building proprietary tech—like a Translation Management System (TMS)—can feel like a way to gain an edge. But as Olga pointed out, the reality often involves spiraling costs, longer timelines, and a product that’s difficult to maintain. Britta stressed that unless the product is a core part of your business strategy, you might be better off partnering with a specialized provider.
There’s also the risk of creating what Olga called a “technology Frankenstein.” It happens when companies cobble together systems that don’t quite fit, leaving behind a clunky, unattractive mess. When it comes to M&A, buyers aren’t looking for Frankenstein—they’re looking for clean, scalable, and efficient systems.
Technology and Exit Strategies
Another hot topic was how technology impacts a company’s valuation during an acquisition. It’s easy to assume that having proprietary tools automatically boosts your worth, but as the speakers explained, it’s not that simple. Buyers look for tools that add clear, measurable value.
Olga gave practical advice on this: if you’ve developed something in-house, make sure you can show how it drives revenue, improves client retention, or solves problems in ways competitors can’t. Testimonials and case studies can help illustrate this impact, but ultimately, the numbers speak loudest.
Britta added that technology alone isn’t always a deal-clincher. Buyers also evaluate the team behind the tech, looking for vision, expertise, and a proven ability to execute.
The Real Work Begins After the Deal
Once an acquisition is finalized, the focus shifts to integration—and this is where things can get really tricky. The speakers shared their thoughts on what makes IT integration such a challenge and how companies can set themselves up for success.
Migrating systems, aligning processes, and managing competing technologies all require careful planning. Olga highlighted the importance of having a structured approach, with clear accountability and realistic timelines. Without this, integration efforts can quickly spiral into chaos.
Interestingly, both Britta and Olga emphasized that doing nothing—leaving systems as they are—can be the most costly mistake of all. It’s tempting to avoid the immediate pain of integration, but over time, the inefficiencies and frustrations pile up, eroding the value of the merger.
Lessons from Technology Provider Mergers
For technology companies merging with other tech providers, the stakes can be even higher. Examples like the merger of Memsource and Phrase show how challenging it is to combine two competitive products while maintaining customer trust.
The key here is transparency. Customers want to know what the future holds for the tools they rely on. Will the merged company continue to support both products? Will they build something new? Britta stressed the need to communicate these plans early and clearly to avoid losing customers to competitors.
Olga also warned against creating a “cosmetic” solution—a temporary fix that masks underlying issues without truly addressing them. Successful mergers require deliberate, thoughtful decisions about how to integrate products and brands.
People Are the Real Asset
Amid all the talk of technology, it was refreshing to hear the speakers highlight the human side of M&A. Britta and Olga agreed that a strong, adaptable team is often the most valuable asset in a merger.
Buyers don’t just look at products and financials—they assess the people behind the company. Do they have the vision to drive growth? Can they manage resources effectively? Are they prepared for the challenges of integration? A team that checks these boxes can make a company far more attractive to potential buyers.
Planning for Integration Success
The webinar wrapped up with practical advice for companies navigating the M&A process. Britta and Olga urged businesses to start planning for integration as early as possible—ideally during the due diligence phase. This means assessing current systems, defining clear goals, and involving IT specialists who can foresee potential roadblocks.
Their final takeaway was a powerful one: successful mergers don’t happen by accident. They require careful thought, clear communication, and a willingness to adapt as new challenges arise.
Final Thoughts
The webinar was a treasure trove of insights for anyone involved in M&A, especially in industries where technology plays a central role. Britta Aagaard and Olga Blasco brought a wealth of knowledge to the table, offering practical advice and fresh perspectives on some of the most complex aspects of the process.
Whether you’re gearing up for a merger, building innovative technology, or simply looking to future-proof your business, the lessons from this discussion are invaluable. As Britta and Olga showed us, the key to success lies in preparation, focus, and the ability to see the big picture.
