Acquisition with non-integrated ERP
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I think that it depends on what the intention is with the acquired companies. If you may sell the business at some point and intend to run it independently, integrating systems does not make sense. If the intention is to incorporate the companies to become part of a larger organization, not integrating will likely generate a lot of inefficiencies over time and prevent realization of SG&A benefits as well as operational / commercial coordination.
From what I’ve seen, not integrating ERP systems can lead to a great deal of challenges, particularly around integration points and data. You also don’t get the best deal if you are negotiating with two different ERP vendors.
In my experience, keeping ERP systems separate after an acquisition can work in the short term, mainly to avoid operational disruption. It gives the acquired company time to stabilize while leadership focuses on integration planning.
That said, when systems stay non-integrated for too long, issues start to surface: manual reporting, duplicated data, limited visibility, and slower decision-making. Without a clear integration roadmap, “temporary” separation often becomes permanent and starts to erode value.
What tends to work best is treating non-integration as a deliberate phase, not an endpoint, with a clear plan for when and how integration will happen.
Really depends on the business model. In my experience from a company I currently work for, where inter-regional collaboration is the key element, as we’re all benefitting from each others expertise equally, it would be a nightmare to not use the same ERP. This is why for every acquisition that we have completed over the last 10 years, it has always been one of the main integration milestones to complete – usually taken care of right from Day One. Working on the same ERP globally brings an immense improvement in day-to-day collaboration. AP, AR, internal invoicing, cost transferring: all of that happens almost “magically” behind the scenes and does not bother a regular employee. This way full focus is put on the actual project execution.
I have significant experience working with non‑integrated ERP systems in the context of acquisitions, particularly from the finance integration perspective. In approximately half of the transactions I have supported, the acquired companies operated on ERP platforms that were not aligned with the acquiring organization’s systems. These misalignments extend beyond financial reporting and impact critical functions such as payroll, inventory management, procurement, and internal controls. From a finance standpoint, non‑integrated ERPs increase complexity during close and consolidation, reduce data transparency, and elevate operational and reporting risk during the transition period.
Based on my experience, ERP integration is one of the most resource‑intensive and time‑consuming aspects of post‑acquisition integration and is often underestimated. A realistic ERP conversion for a mid‑to‑large, acquired business typically requires a minimum of two years to execute effectively. Attempts to accelerate this timeline—particularly in large organizations—often result in execution gaps, control weaknesses, and team burnout. While faster ERP transitions may be feasible in smaller acquisitions with sufficient resources and governance, successful integration ultimately depends on disciplined planning, adequate staffing, and alignment with the broader acquisition strategy rather than speed alone.
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