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When companies undergo a merger or acquisition it is imperative for both parties involved in the integration to understand the other's processes and systems, and recognizing the amount of time this process requires for proper due diligence is crucial.
Once the purchase phase is completed, companies enter the transition phase, which involves record reviews on both sides. Imported data from each company's respective ERP systems is consolidated into Excel spreadsheets and reviewed for information that is vital to the long term success of the new partnership.
The data gained from this review falls into three categories:
Master Data: This is non-transactional data that typically stems from the chart of accounts. Customers, product numbers, vendors, project numbers, employee numbers etc. are also a part of this data set.
Transactional Open Data: This data is comprised of information found in the company's ledger.
Transactional History: This type of data can be difficult to integrate into the new system due to many uncertainties. It is important to determine how far back the companies want data as well as whether there will be any trend analysis or comparative reporting on the data. All data must balance out to zero prior to importing.
Again, this process should not be rushed so as to avoid future issues related to the initial acquisition.
For More Information:
Original Article: Mergers and Acquisitions: The Integration or 2 Worlds