Post-Merger IT Integration: A 90-Day Playbook for NC Manufacturing Acquisitions

Post-merger IT integration for manufacturing acquisitions follows a proven 90-day framework: stabilize and assess during Days 1-30, plan and prioritize during Days 31-60, and execute quick wins during Days 61-90. For North Carolina manufacturers acquiring peers or being acquired by private equity platforms, this structured approach prevents production disruptions while capturing technology synergies.

Key takeaway: According to Harvard Business Review research, between 70% and 90% of mergers fall short of expectations during the post-acquisition phase, with technology integration issues accounting for approximately 30% of failed mergers per Deloitte. A structured integration playbook significantly reduces these failure rates.

Closing an acquisition soon? Preferred Data Corporation provides post-merger IT integration services for North Carolina manufacturing companies. BBB A+ rated with 37+ years of experience. Call (336) 886-3282 or plan your integration.

Pre-Close Preparation: Before Day 1

Effective post-merger integration begins before the transaction closes. Use the period between signing and closing to prepare.

Critical Pre-Close Activities

• [ ] Complete technology due diligence findings review
• [ ] Identify Day 1 requirements (email, network access, security)
• [ ] Establish integration team with both buyer and target representatives
• [ ] Secure temporary administrative access agreements
• [ ] Plan communication strategy for IT staff and users
• [ ] Identify key IT personnel for retention conversations
• [ ] Document current IT vendor contracts and renewal dates
• [ ] Establish integration budget and approval thresholds

Day 1 Readiness Checklist

Before the transaction closes, ensure these items are ready for immediate Day 1 execution:

• Communication templates for employees at both organizations
• Temporary email forwarding configurations (if needed)
• VPN or remote access for integration team members
• Administrative credentials for critical systems (held in escrow)
• Emergency contact list for both organizations' IT teams

Days 1-30: Stabilize and Assess

The first 30 days focus on maintaining business continuity while gaining a detailed understanding of the acquired environment. Production cannot stop while integration happens.

Week 1: Immediate Stabilization

Security Priorities:

• Change administrative passwords on all critical systems
• Review and restrict external access points
• Verify backup systems are functioning
• Implement monitoring on the acquired network
• Audit user access lists for inactive or unauthorized accounts

Communication:

• Announce IT integration team and points of contact
• Establish support channels for acquired company employees
• Communicate that no immediate changes will disrupt daily operations
• Identify employee concerns and address them proactively

Documentation:

• Collect all IT documentation from the acquired company
• Inventory critical systems and their dependencies
• Map network architecture and connectivity
• Document vendor contacts and escalation procedures

Weeks 2-4: Detailed Assessment

Infrastructure Assessment:

• Complete hardware inventory with age and lifecycle status
• Assess network infrastructure capacity and architecture
• Document server workloads and resource utilization
• Evaluate storage systems and data growth trends
• Review internet and WAN connectivity options between sites

Application Assessment:

• Inventory all business applications and their functions
• Identify application overlaps between acquiring and acquired companies
• Document integration points between applications
• Assess ERP system capabilities and configuration
• Evaluate manufacturing-specific systems (MES, SCADA, quality)

People Assessment:

• Map IT staff skills and responsibilities
• Identify key person dependencies
• Assess cultural alignment between IT teams
• Document institutional knowledge held by individuals
• Conduct retention conversations with critical staff

For a North Carolina manufacturing acquisition, pay particular attention to OT systems on the production floor. A Greensboro metalworking facility and a Charlotte plastics manufacturer may use fundamentally different control systems that require specialized integration approaches.

Days 31-60: Plan and Prioritize

With a clear understanding of both environments, the second 30 days focus on creating a prioritized integration roadmap.

Integration Planning Framework

Category 1: Quick Wins (Execute Days 61-90)

These items deliver visible value with manageable risk:

• Email system consolidation to a single platform
• Unified helpdesk and support ticketing
• Standardized endpoint protection and patching
• VPN/remote access consolidation
• Internet and connectivity optimization
• Basic security policy alignment

Category 2: Medium-Term Projects (Months 4-9)

These require more planning and carry moderate operational risk:

• Active Directory/identity consolidation
• Cloud migration of appropriate workloads
• Network infrastructure upgrades and site connectivity
• Phone system consolidation
• Backup and disaster recovery standardization
• Vendor contract rationalization

Category 3: Long-Term Initiatives (Months 10-18+)

These are complex, high-impact projects requiring careful planning:

• ERP system migration or integration
• Manufacturing system standardization
• Custom application modernization
• Complete infrastructure refresh
• Data warehouse and analytics consolidation

Prioritization Criteria

Rank projects using these factors:

Budget Planning

Based on target company size, plan these typical integration budgets for NC manufacturing acquisitions:

• 25-50 employees acquired: $100,000-$300,000 Year 1 integration spend
• 50-100 employees acquired: $250,000-$750,000 Year 1 integration spend
• 100-250 employees acquired: $500,000-$1,500,000 Year 1 integration spend

These estimates include hardware, software licensing, migration services, and consultant/MSP support but exclude ERP migration, which is often a separate budget item.

Need integration planning support? PDC develops detailed integration roadmaps for NC manufacturing acquisitions. Call (336) 886-3282 or start planning.

Days 61-90: Execute Quick Wins

The third 30 days focus on executing Category 1 projects that demonstrate integration progress and deliver immediate value.

Email Consolidation

Email is often the first visible integration to users. Options include:

Full migration approach:

• Migrate acquired company mailboxes to acquiring company's email platform
• Update email addresses to acquiring company domain
• Configure forwarding from old addresses for 6-12 months
• Update email signatures, distribution lists, and shared mailboxes

Coexistence approach (if full migration is premature):

• Configure cross-organization calendar sharing
• Establish unified global address list
• Implement consistent email security policies
• Plan full migration for a later phase

For Piedmont Triad manufacturers, email consolidation during Days 61-90 is achievable if both companies are on Microsoft 365 or can be migrated there. On-premises Exchange environments require more planning.

Security Policy Alignment

Standardize security across both organizations:

• Deploy consistent endpoint protection on all acquired devices
• Implement MFA on all accounts accessing shared resources
• Align password policies and complexity requirements
• Establish unified security awareness training
• Implement consistent backup policies
• Deploy vulnerability scanning on the acquired network

Network Quick Wins

• Establish site-to-site VPN between Greensboro, High Point, Charlotte, or Raleigh locations
• Standardize DNS and DHCP management
• Implement basic network segmentation on the acquired network
• Consolidate internet connectivity where locations are proximate
• Deploy unified network monitoring across both environments

Support Consolidation

• Merge helpdesk operations into a single ticketing system
• Cross-train support staff on both environments
• Establish unified SLAs for all employees
• Create shared knowledge base documentation
• Implement consistent asset management practices

Manufacturing-Specific Integration Considerations

Manufacturing acquisitions in North Carolina carry unique technology challenges beyond typical IT integration.

ERP Integration Options

Manufacturing ERP systems are the most complex and highest-risk integration item:

Option 1: Migrate to Acquirer's ERP

• Highest synergy potential
• Highest disruption risk
• Timeline: 12-24 months typically
• Best when: Acquirer's ERP is clearly superior or target is small

Option 2: Keep Separate ERPs with Integration Layer

• Moderate synergy capture
• Lower disruption risk
• Timeline: 3-6 months for integration layer
• Best when: Both ERPs serve their environments well

Option 3: Replace Both with New Platform

• Highest long-term value
• Highest cost and longest timeline
• Timeline: 18-36 months
• Best when: Building a platform of multiple acquisitions

For PE firms building manufacturing platforms in the Piedmont Triad and Charlotte areas, Option 2 is often the best initial approach, allowing operational continuity while a longer-term platform ERP strategy is developed.

Production System Continuity

Manufacturing cannot stop during IT integration. Protect production by:

• Never changing OT networks without production team involvement
• Scheduling changes during planned maintenance windows
• Maintaining rollback capability for every production system change
• Testing integration changes in development before production
• Having the acquired company's IT staff present during critical changes
• Keeping legacy systems accessible until replacements are proven

Quality System Integration

If both companies maintain quality management systems (ISO 9001, AS9100, IATF 16949):

• Evaluate system overlap and gap analysis
• Determine which QMS becomes the standard
• Plan document control integration
• Merge calibration and equipment records
• Align audit schedules and procedures

Common Post-Merger IT Integration Pitfalls

Pitfall 1: Moving Too Fast

Problem: Rushing integration causes production disruptions and employee frustration. Solution: The 90-day playbook limits first-phase changes to low-risk items. Save complex integrations for later phases.

Pitfall 2: Losing Key IT Staff

Problem: Acquired company IT staff leave before knowledge transfer is complete. Solution: Retention agreements, clear role definitions, and early communication about their future in the combined organization.

Pitfall 3: Ignoring Cultural Differences

Problem: Different IT cultures (formal vs. informal, centralized vs. distributed) create friction. Solution: Acknowledge differences explicitly, adopt best practices from both organizations, and give teams time to adjust.

Pitfall 4: Underestimating Licensing Costs

Problem: Software licensing changes under new ownership create unexpected expenses. Solution: Review all contracts for change-of-control clauses during due diligence and budget for license true-ups or replacements.

Post-90 Day: Sustaining Integration Momentum

After the initial 90 days, maintain integration momentum with:

• Monthly integration steering committee meetings
• Quarterly milestone reviews against the roadmap
• Regular communication to all employees on progress
• Budget reviews to ensure adequate funding
• Celebration of integration milestones
• Continuous improvement of cross-site operations

How PDC Manages Post-Merger Integration

Preferred Data Corporation has managed IT integration for manufacturing acquisitions throughout North Carolina:

• Pre-close planning: Technology assessment and Day 1 readiness
• Stabilization: Immediate security, monitoring, and support establishment
• Integration management: 90-day playbook execution with weekly progress reporting
• Ongoing support: Managed IT services for the combined entity
• Platform building: Technology standardization across multi-company portfolios

Our High Point headquarters provides on-site support across the Piedmont Triad, Charlotte, Raleigh, Durham, and Winston-Salem.

Frequently Asked Questions

How long does full IT integration take after a manufacturing acquisition?

The initial 90-day playbook addresses immediate stabilization and quick wins. Full integration, including ERP consolidation and infrastructure standardization, typically takes 12-24 months for a manufacturing acquisition. Complex multi-site integrations can extend to 36 months.

Should we keep the acquired company's IT staff or replace them with our own?

Retain acquired IT staff whenever possible, at least through the integration period. They hold institutional knowledge about systems, vendors, and processes that cannot be quickly replicated. After integration stabilizes, evaluate long-term staffing based on the combined organization's needs.

When should we tackle ERP integration?

Unless the acquired company's ERP is creating immediate operational problems, defer full ERP integration until after the 90-day stabilization period. Typically, ERP integration begins planning at Month 4-6 and execution at Month 9-12, giving the combined organization time to understand requirements.

How do we handle conflicting IT vendor relationships?

Document all vendor contracts and renewal dates during Days 1-30. During the planning phase (Days 31-60), evaluate which vendors to retain, consolidate, or replace. Do not rush vendor changes that could disrupt operations, but identify cost savings from consolidation.

What is the biggest risk during post-merger IT integration for manufacturers?

Production disruption is the highest risk. Every IT change in a manufacturing environment has the potential to affect production systems, even indirectly. The 90-day playbook mitigates this by limiting early changes to non-production systems and requiring production team involvement for any changes near OT networks.

Related Resources

• Technology Due Diligence Checklist for M&A
• M&A Technology Due Diligence
• Managed IT Services - Post-acquisition IT management
• Cloud Solutions - Cloud migration for combined entities
• Contact PDC - Plan your integration

Do not let IT integration derail your acquisition value. Preferred Data Corporation has supported manufacturing acquisitions across North Carolina since 1987. BBB A+ rated with deep manufacturing technology expertise. Call (336) 886-3282 or discuss your integration needs today.