When two companies merge, one of the most critical and complex assets to align is enterprise data. From structured financial records to customer databases and proprietary applications, the sheer volume and sensitivity of data make it a prime area of focus.
Failure to properly manage data during a merger can lead to security vulnerabilities, compliance violations, and operational disruptions. This blog outlines the key steps your organization should take to manage enterprise data effectively across three crucial pillars: risk management, data storage, and regulatory compliance.
1. Conduct a Comprehensive Data Audit
Before any integration takes place, conduct a full data inventory and audit across both companies. This includes:
- Identifying data sources (cloud, on-prem, hybrid)
- Categorizing data types (PII, financial data, intellectual property)
- Evaluating data quality and ROT (redundant, obsolete, and trivial) data
- Locating all data silos
Understanding what the data of two different companies looks like collectively is important to mitigate issues such as access control, storage cost, and risk. More than 80% of an organization’s data is unstructured. During a merger, those two sets of data will come together if not solved for beforehand.
Read: What Should I Do With All My Old Unstructured Data?
2. Assess Data Risks and Vulnerabilities
Once the audit is complete, perform a data risk assessment to identify:
- Systems with outdated security protocols
- Data sets with weak or no encryption
- Access control issues and shared accounts
- Shadow IT and unauthorized applications
Consider prioritizing remediation for high-risk data assets that involve personally identifiable information (PII) or regulated financial data.
3. Develop a Unified Data Governance Framework
Merging companies often have different data governance policies. Establish a harmonized framework that includes:
- Clear data ownership roles
- Centralized data classification standards
- Unified retention policies
- A common data dictionary or taxonomy
Consider the quality of the acquired company’s governance framework and how it compares to yours. Is there a better tool they have? Are they more or less efficient? Pool the best assets from each to create an ideal framework.
4. Ensure Regulatory Compliance Across Jurisdictions
Data compliance becomes exponentially more complex in mergers, especially if the companies operate in different countries or industries. Steps include:
- Mapping existing compliance obligations (e.g., GDPR, HIPAA, CCPA, SOX)
- Identifying conflicts or gaps in compliance
- Creating a roadmap to unify regulatory practices
- Identifying stored data that is beyond retention
Don’t forget, legal counsel and compliance officers from both companies should be deeply involved in this phase.
5. Design a Scalable and Secure Storage Strategy
Legacy systems may not support the growing data needs of the new enterprise. Develop a storage plan that’s:
- Secure: Encrypt at rest and in transit, implement access control
- Scalable: Capable of handling future growth
- Compliant: Meets retention and data residency laws
Popular solutions include hybrid cloud environments, tiered storage strategies, and cloud-native backups. Tiered storage often helps with the budget. Lower-tier storage = cheaper cost while still meeting regulatory requirements.
Read: How To Manage Legacy Data
6. Create a Data Integration Roadmap
You don’t have to integrate everything at once. Build a phased integration roadmap that includes:
- Priority data sets for early integration
- Data transformation tools and ETL pipelines
- Testing environments to validate accuracy and integrity
- Business continuity and rollback procedures
For automation, leverage AI/ML tools for faster data mapping and anomaly detection.
7. Implement a Robust Data Security Strategy
Security is not a one-time effort. Post-merger data should be protected through:
- Continuous monitoring and incident response planning
- Identity and access management (IAM) systems
- Encryption, tokenization, and secure APIs
Include regular penetration testing and security audits as part of ongoing governance.
8. Communicate and Train Teams Effectively
Change in management is often overlooked when it comes to technical integrations. Make sure to:
- Train staff on new data tools and policies
- Communicate clearly about access changes and responsibilities
- Provide updated documentation and self-service portals
Data strategies will likely evolve after a merger. In the event of an acquisition, it’s important to make sure both current and new employees are trained for good measure.
A Strategic Approach to Enterprise Data Integration
Managing enterprise data during a merger isn’t just about IT, but it’s a business-critical function that influences risk, compliance, security, and growth. By following a structured approach, organizations can turn a potential liability into a competitive advantage.
The goal isn’t just data consolidation; it’s creating a trusted, secure, and compliant data foundation for the new enterprise. Need guidance or want to get started with your data merger? The Congruity360 team can help. Chat with us today!
