Mergers and acquisitions (M&As) may promise to pave the way to a company’s growth, market expansion, and fresh new opportunities, but beneath the boardroom optimism, challenges await, especially when it comes to stitching together differing company cultures, departments, systems and technologies.
Far beyond the purchase price and financial due diligence, the true cost of M&As often lies in the hidden friction and inefficiencies caused by poor integration. Incorrectly managed, integration can create cultural clashes, disrupt workflows, and undermine the efficiencies that the deal was intended to achieve.
Little wonder then, that although billions are spent each year pursuing M&A deals, only about 70% of them are successful.
Many of these reasons are due to cultural clashes; overestimated synergies, leading to unrealistic expectations and disappointment; poor integration planning that causes operational disruptions; a loss of key talent; and customer disruption as changes in service or product offerings post-merger can alienate existing customers.
Sticking point
One of the most persistent and complex challenges in any M&A is technology integration. The pressure stems from trying to unify disparate IT systems, often built on incompatible platforms, weighed down by legacy infrastructure, and guided by conflicting standards.
As companies join forces, they must also merge websites, customer data, backend systems, and user interfaces. The result? A jumble of platforms, conflicting technologies, and inconsistent digital experiences. This phenomenon, known as tech friction, can undermine customer trust, frustrate employees, and stall innovation.
The ripple effects of fragmented tech are far-reaching, affecting everything from customer service and internal communications to finance, HR, and supply chain management, which drains company resources.
It’s also disruptive, slowing down the transition, denting productivity, staff morale, and customer satisfaction.
The challenge is compounded by the fact that companies typically operate on platforms built at different times, for different purposes, and maintained under varying governance standards. In many cases, one company may rely heavily on deeply embedded legacy systems while another has embraced cloud-native technologies. When these divergent systems are forced together, a mismatch arises, which can affect everything from cybersecurity and compliance issues to disrupted workflows and user experiences.
These problems aren’t unique to big companies: even small companies undergoing mergers face the same barriers, except they have fewer resources to deal with the problem.
Fragmented data can result in duplication and errors, while employees struggle to navigate disjointed tools. Ultimately, the friction introduced by IT infrastructures can undermine the gains that justified the merger in the first place.
Case in point
Boston Consulting Group offers a cautionary tale, warning that today’s deals carry even greater risk due to the complexity of digital systems.
Between 2004 and 2013, Banco Sabadell acquired and integrated seven banks, as well as Lloyds Banking Group’s Spanish business, into its operations. But when it acquired TSB from Lloyds in 2015, its £450 million IT migration project that was expected to save £160 million a year caused serious technical issues during which customers were locked out of their accounts while others saw details belonging to different users, ultimately leading to the resignation of TSB’s chief executive, Paul Pester. BCG’s Sukand Ramachandran argues that acquirers often focus on customer bases and revenue projections while neglecting the robustness of the target’s technology. In contrast, Unilever’s acquisition of Alberto Culver succeeded because it used data modelling to assess targets before making a move.
Experts agree that IT teams must be involved from the start of any deal to evaluate architecture and integration risks. Scenario planning and beta testing, which are standard in the tech world, can help companies avoid the operational chaos that comes with failed integrations.
Why traditional integration falls short
In many M&As, tech integration is treated as an afterthought – something to solve once the deal is done. This leads to rushed, costly fixes and disconnected systems. Legacy incompatibilities are overlooked, and fragmented data handling causes duplication and errors.
Crucially, the impact on employees and customers is underestimated, resulting in poor user experiences and disengagement.
Without strategic planning for scalable integration, organisations limit future growth. Successful integration demands more than technical alignment; it requires a people-centred, forward-thinking approach that connects systems, protects data integrity, and maintains agility while delivering seamless digital experiences that support long-term business goals.
Engineered to adapt
Companies need flexible, interoperable technology solutions that offer tools to help businesses stay focused on growth and strategy, instead of being bogged down by the complexity of system integration.
Many companies are turning to solutions such as digital experience platforms (DXPs), to merge disparate systems, while enhancing usability, efficiency and profitability.
Expanding the power of DXPs
While DXPs are commonly perceived as marketing-focused platforms designed primarily for customer acquisition, the more robust and well-built DXPs offer capabilities far beyond this scope. They excel at integrating and surfacing various technologies in a modular fashion, serving as a central orchestration layer. This enables organisations to smoothly connect legacy systems, modern cloud-based tools, and diverse digital touchpoints, significantly streamlining integration during complex mergers and acquisitions.
More than a content management system, DXPs can act as a central hub that unites backend systems, manages digital content, personalises interactions, and supports collaboration across departments – from customer-facing portals to employee intranets — without needing to overhaul all existing systems.
DXPs offer a powerful, scalable solution for bridging the gaps left by incompatible technologies. They reduce friction, protect productivity, and ensure that both customers and employees feel the benefits of the merger, not the burden.
What a DXP does
1. Consolidates platforms It integrates different systems (like customer databases, content management systems, and e-commerce platforms).
2. Creates seamless user journeys Whether someone is visiting a website, logging into a customer portal, or using a mobile app, a DXP ensures a consistent experience.
3. Improves personalisation A DXP can use customer data to tailor content and recommendations.
4. Simplifies content management Instead of using different tools for different platforms, teams can manage all digital content (text, images, videos, etc.) from one central dashboard.
5. Supports scalability M&A integration isn’t a one-time project. As businesses grow, DXPs make it easier to add new channels, brands, languages, or regions without starting from scratch.
In M&As, a DXP is the glue that helps to unify digital systems and touchpoints so customers and employees get a consistent, high-quality experience, even if the backend systems are still being merged.
It’s like putting in a smooth, modern front door while you quietly finish off the home renovations and tidy up the mess behind it. Mike MacAuley is the General Manager at Liferay, the leading open source portal for the enterprise, offering content management, collaboration, and social out-of-the-box.
