Mergers are booming. Will your ITAM strategy help you stay ready?

Dealmakers sealed 710 major acquisitions last year, pushing mergers and acquisitions (M&As) activity up 15% from 2023. Large deals surged even faster, with transactions between $1 billion and $10 billion jumping 36% in the second half of 2024. Companies are buying, merging, and expanding at breakneck speed.

Their software licenses, however, aren’t keeping up.

Most organizations spend millions on redundant software during mergers, paying for duplicate licenses while scrambling to verify compliance. For companies deep in M&A integration, the waste could be astronomical.

The surge in deals has created a perfect storm for IT asset management (ITAM) teams. When two companies merge, their software contracts collide. Enterprise agreements overlap. Compliance requirements multiply. Security tools conflict. Yet most organizations don’t discover these issues until months after deals close — when costs have already spiraled, and vendors start circling for audits.

The difference between costly chaos and smooth integration often comes down to what happens in the first 90 days — and whether anyone remembered to check the fine print.

The price of overlooking ITAM

Companies waste an average of $18 million annually on unused software licenses — and that’s without factoring in mergers. When organizations combine IT environments without proper planning, these costs can compound rapidly.

Duplicate contracts pile up. Multiple departments maintain separate licenses for the same tools. Cloud subscriptions overlap. Support contracts renew automatically. Each redundancy represents real money flowing out of IT budgets. However, the true costs run deeper.

Security gaps emerge when software inventories don’t align. Unvetted applications can slip through due to the lack of well-defined and integrated processes. Legacy systems linger without proper security protocols. Remote workers access corporate resources through personal devices. Even companies with strong pre-merger security postures find themselves exposed during integration.

Vendor audits pose another serious risk. Companies with recent M&A activity make prime targets — the combination of merged environments, staff changes, and transitioning systems creates perfect conditions for compliance issues. Without a strong ITAM foundation, organizations face potentially significant penalties and unexpected costs.

Why ITAM expertise changes everything

Most IT teams know how to spot basic licensing gaps and manage routine software costs. However, M&As demand deeper expertise — the kind that comes from understanding complex core licensing rules, cloud deployment terms, and publisher-specific compliance requirements.

Take software contracts for example. Seemingly identical licenses often hide crucial differences in usage rights, renewal terms, and deployment flexibility. Only specialists who regularly handle major vendors like Microsoft, Oracle, and IBM recognize these nuances before they become costly problems.

Timing matters, too. ITAM experts can identify optimization opportunities that can fund other integration costs. They spot redundant systems before renewal dates lock in another year of duplicate spending. They calculate actual software costs so deals don’t come with surprise IT bills attached.

The difference lies in preparation. Understanding your software position before integration begins helps prevent unexpected costs, reduce compliance risks, and ensure smoother transitions for both organizations.

Get your house in order first

You can’t control what you’ll discover in your next acquisition, but you can prepare your own organization.

Start by documenting your current software position.

Record licenses, track renewal dates, identify key terms and conditions, and map to stakeholders. Understanding usage patterns is key with the rise in SaaS applications. This baseline will be crucial to absorbing new assets effectively.

Know your compliance status with strategic publishers.

Understand where you have spare capacity and where you’re running tight. Create clear lists of approved and denied software. This self-knowledge proves invaluable when merger discussions begin, even if you can’t access the other company’s complete IT picture yet.

Planning must account for limited information.

Experienced ITAM teams can estimate likely software costs based on company size and industry patterns, even without seeing actual contracts. They can also identify potential integration challenges early, helping deal teams factor IT costs into acquisition planning.

Unfortunately, most companies lack the in-house resources to maintain this level of ITAM readiness, creating a need for outside support.

Partner with proven expertise

Organizations undergoing M&A activities need more than basic license counting. They need deep insight into their software position before deals close. For example, healthcare providers must understand complex licensing terms across multiple facilities. Manufacturing firms need to track applications across shop floors and mobile devices. Financial institutions must navigate strict compliance requirements while maintaining security.

Experience with major publishers makes the difference. The right partner understands Oracle’s core licensing rules, Microsoft’s cloud deployment terms, and IBM’s complex agreements. They know which terms to evaluate, where to look for savings, and how to maintain compliance during integration.

And that’s where we come in.

ITAM services by SHI guide organizations through every stage of M&A software integration. We provide a comprehensive entitlement analysis to create a clear picture of your current position. We evaluate maintenance agreements, analyze purchase histories, and identify opportunities to optimize spending.

Beyond basic inventory, we help determine which licensing schemes need adjustment, when to upgrade agreements, and how to consolidate contracts. Each recommendation considers your specific industry requirements and compliance needs, ensuring you maintain proper coverage while eliminating unnecessary costs.

What software has been deployed? Which entitlements do you own? Where are the risks and opportunities across the entire organization?

We can help. This insight proves invaluable when evaluating potential integrations or planning system consolidations. It will also help you gain a complete view of your organization’s current state and reach an optimized license position.

Don’t let poor asset management delay your next deal

Software environments grow more complex by the day. Each new acquisition brings fresh integration challenges. And the cost of poor ITAM during mergers only rises.

Smart organizations don’t wait for merger announcements to organize their ITAM. They document their assets, understand their risks, and prepare for growth. When deals close, they’re prepared to capture value instead of counting problems.

Ready to strengthen your ITAM foundation for future growth? Contact SHI and discover how we can optimize your next merger.