For many businesses, the transaction is considered complete when the acquisition closes.

For the finance function, that is often when the most demanding work begins.

An acquisition can fundamentally change the complexity of the finance organisation. New legal entities, reporting requirements, systems, controls, processes, people and data all need to be brought together, often while the business continues to operate at pace.

The quality of that integration can have a material impact on whether the strategic rationale for the transaction is ultimately achieved.

For CFOs and transformation leaders, finance integration should therefore be considered an integral part of the transaction strategy rather than an operational exercise that begins after completion.

The first 100 days matter

The period immediately following completion is critical.

Management needs reliable consolidated reporting. The board needs visibility of performance. The acquiring business needs to understand the financial position of the acquired company. Employees need clarity over processes and responsibilities.

At the same time, finance teams are often managing two sets of processes and systems.

This creates significant pressure.

A poorly planned integration can result in duplicated reporting, manual consolidation, inconsistent controls and uncertainty over data.

A well planned integration establishes clarity quickly.

The objective should be to create a stable finance environment while progressively moving towards the target operating model.

The ERP question

One of the most significant decisions is what happens to the acquired company's finance systems.

There are typically three options.

Retain the existing system

This may minimise disruption in the short term but can create long term complexity.

Migrate onto the acquiring company's platform

This can create standardisation and efficiency but requires significant planning, data migration and change management.

Create a new target environment

This may provide a cleaner long term solution but can introduce additional cost and complexity.

The right answer depends on the circumstances of the transaction.

However, the decision should be made as part of the integration strategy rather than simply defaulting to the existing technology landscape.

Data is often the hidden challenge

Finance integration is ultimately a data integration exercise.

Different organisations frequently have different:

• Charts of accounts

• Reporting structures

• Customer and supplier master data

• Accounting policies

• Financial calendars

• Management reporting definitions

• Data ownership models

• Controls

The acquiring business may believe it is simply combining two finance systems.

In reality, it is often trying to reconcile two different definitions of how the business operates.

This is why finance transformation experience can be particularly valuable during M&A.

The technical migration is only one part of the challenge. The organisation also needs people who understand the financial and commercial implications of the changes.

The TSA clock is already running

Where a transaction involves a Transitional Services Agreement, the pressure becomes even greater.

The acquired business may initially rely on the seller for finance systems, reporting, payroll, accounting or other services.

That arrangement provides continuity, but it also creates a deadline.

The acquiring organisation needs to establish its own capabilities before the TSA expires.

This means finance integration cannot be treated as an open ended transformation programme.

There must be a clear path from:

Transaction → Stabilisation → Integration → TSA Exit → Target Operating Model

Each stage requires different expertise.

The finance operating model needs attention

Technology is only part of integration.

The organisation also needs to determine how finance will operate after the transaction.

Which activities remain local?

Which move into shared services?

Who owns reporting?

How are controls managed?

What happens to the acquired finance team?

Which processes are standardised?

Which require local flexibility?

These decisions can have a significant impact on the expected synergies from the transaction.

A business may successfully integrate its ERP system but still fail to realise the expected benefits because the finance operating model has not changed.

The role of experienced finance professionals

This is where experienced finance transformation talent can make a material difference.

The strongest integration teams typically combine several capabilities:

Finance leadership

Someone accountable for the overall finance integration and relationship with the CFO.

Transformation leadership

Someone capable of managing the programme, dependencies and stakeholders.

Systems expertise

Professionals who understand the ERP landscape, data migration and integration requirements.

Technical finance

People who understand reporting, controls, accounting policies and consolidation.

Operational finance

Professionals who understand how finance actually operates within the business.

These capabilities do not necessarily need to become permanent positions.

For many transactions, the requirement is greatest during a defined period surrounding completion and integration.

Access to experienced specialists can therefore provide the organisation with capability when it is most needed without permanently increasing the size of the finance function.

Integration should start before completion

One of the most common mistakes is waiting until completion to start thinking about finance integration.

The better approach is to begin during the transaction.

Finance should understand the target's systems, processes, controls, people and data before completion wherever access permits.

This allows the organisation to identify risks early and establish a practical integration roadmap.

It also allows the CFO to determine which specialist expertise will be required before the organisation reaches a critical point.

From transaction to value creation

The ultimate objective of finance integration is not simply to combine two finance functions.

It is to enable the wider transaction strategy.

A successful integration should provide:

• Reliable financial reporting

• Strong financial controls

• Clear performance visibility

• Consistent processes

• Effective systems

• Appropriate finance capability

• Lower operating complexity

• A platform for future growth

The transaction creates the opportunity.

Finance integration helps turn that opportunity into operational reality.

The CFO's question

The question after an acquisition should not simply be:

"How quickly can we integrate finance?"

It should be:

"What finance capability do we need to realise the value of this transaction?"

That change in perspective can fundamentally alter how integration is planned, resourced and delivered.

For CFOs and transformation leaders, the transaction may finish at completion.

The value creation journey does not.