Resources for Federal Financial Institutions Examination Council (FFIEC)

The impact of Data Governance on M&A

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Here is the short answer to the question of the importance of data governance when it comes to mergers and acquisitions: if you want to be acquired then it would be good idea to have good data governance in place. Similarly, if you have a hankering to make acquisitions then you should be more interested in companies that have good data governance in place than those that don't. And the shoe is on the other foot also: if you want to go shopping for other companies then it would be a good idea if you had got data governance practices well established throughout your own organisation.

The corollary, of course, is that if you want to remain independent then you should not implement data governance or implement it poorly—but then you'll have poor data quality, an inflexible infrastructure that does not enable reuse, and won't understand your customers as well as your competitors, and will suffer on the bottom line as a result. This will depress your share price, which will mean that you can be acquired for less money, which will compensate the acquirer for the extra money that they have to spend to get your systems into decent shape.

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