When Finance and IT align on performance

By Ringside Talent

March 5, 2025

The success of a merger or acquisition isn’t determined on signing day—it’s measured in the months and years that follow. Finance leaders play a critical role in tracking post-merger performance, measuring synergies, and ensuring that the financial health of the newly combined entity stays on course.

As we conclude our Mergers & Acquisitions blog series, this final post explores how CFOs and Finance teams define, measure, and optimize key post-merger performance metrics. Last Tuesday, we focused on change management and culture from the CIO’s perspective. Today, we turn our attention to Finance and the strategic use of data, analytics, and IT collaboration to drive M&A success.

When Finance and IT align on performance measurement, organizations gain clear visibility into financial outcomes, identify areas for improvement, and unlock long-term value from the deal.

Why Measuring Post-Merger Performance is Critical

According to a Psicosmart article, post-merger success depends on clear performance tracking, including employee retention, operational efficiency improvements, and revenue growth. Without well-defined metrics, organizations struggle to assess the effectiveness of their integration efforts.

Key financial challenges post-merger include:

  • Tracking realized vs. projected synergies (cost savings, revenue growth, operational efficiencies).
  • Ensuring financial reporting accuracy across merged systems.
  • Monitoring cash flow and expense management in alignment with forecasts.
  • Aligning IT and Finance on data integration to enable real-time financial insights.

Key Performance Metrics for Post-Merger Success

  1. Synergy Realization & Financial Impact

One of the biggest M&A goals is achieving synergies that enhance profitability. Finance leaders must:

  • Compare projected vs. actual cost savings from operational efficiencies.
  • Measure revenue growth from cross-selling opportunities post-merger.
  • Work with IT to ensure ERP and financial systems provide accurate synergy tracking.

  1. Profitability & EBITDA Growth

A well-executed merger should drive profitability gains. Finance teams should:

  • Track EBITDA growth trends to evaluate operational efficiency improvements.
  • Assess gross and net margin performance against pre-merger benchmarks.
  • Ensure IT analytics provide real-time margin tracking and forecasting capabilities.

  1. Cash Flow & Working Capital Management

Liquidity is essential post-merger. To maintain financial stability, Finance must:

  • Monitor cash flow projections vs. actual cash position to prevent shortfalls.
  • Optimize working capital by managing accounts payable and receivable cycles.
  • Align with IT to automate treasury management for improved cash visibility.

  1. Financial Reporting Accuracy & Compliance

Regulatory compliance and financial accuracy are non-negotiable. Finance teams should:

  • Ensure standardized financial reporting frameworks are in place post-merger.
  • Align IT and Finance to streamline ERP system integrations for accurate reporting.
  • Leverage AI and automation to enhance audit readiness and compliance tracking.

Collaboration Between Finance and IT: A Data-Driven Approach to M&A Success

Effective post-merger performance tracking depends on seamless collaboration between Finance and IT. By working together, these teams can:

  • Enhance real-time financial insights through integrated reporting systems.
  • Improve decision-making by leveraging data analytics and AI-powered financial forecasting.
  • Ensure compliance and accuracy by aligning IT and Finance on system standardization.

How Ringside Talent Can Help

At Ringside Talent, we specialize in connecting businesses with Finance and IT professionals who have deep expertise in post-merger performance tracking. Whether you need financial analysts, ERP specialists, CFOs, or compliance experts, we help you build a team that drives long-term M&A success.

Looking Ahead: Introducing Our Next Blog Series

Next week, we kick off our Financial & Cybersecurity Resilience blog series, where we’ll explore how IT and Finance leaders collaborate to mitigate cyber threats, fund security initiatives, and protect the bottom line. Stay tuned for insights into building a resilient, secure financial and technology foundation!

Share: