Information Systems Compatibility in M&A Pre-combination Phase

Abstract

This paper addresses the strategic importance of information systems (IS) compatibility and complementarity in evaluating organizational fit during the pre-combination (pre-merger) phase of mergers and acquisitions (M&As). Drawing on the author’s doctoral research and updated literature, the study develops a refined conceptual framework (underpinning the IS-OFAM model) that integrates IS alignment with strategic, cultural, and operational fit dimensions. Through grounded theory–based analysis of two case studies—one in financial services and one in food processing—the paper identifies patterns of IS oversight, cultural-technical misalingment, and underleveraged IS assets. Findings show that IS compatibility often goes unassessed, while IS complementarity is undervalued as a source of post-merger innovation. The proposed IS-Organizational Fit Alignment Model (IS-OFAM) provides this conceptual framework by embedding IS assessments into early-stage due diligence and planning. The research contributes to M&A theory and practice by linking business information systems to pre-combination diagnostics and integration strategy.