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SAP Mergers and Acquisitions: Best Practices for Data Migration and Integration

Mergers and acquisitions (M&A) are some of the most complex business transformations an organization can undergo. When SAP systems are involved, the challenges multiply. Different versions, extensive customizations, and massive amounts of critical data make post-merger integration a daunting task. Done right, however, SAP M&s;A integration can streamline operations, unlock value, and set the stage for growth.

In this guide, we’ll explore the common pitfalls of SAP M&A projects and provide a best practices roadmap — complete with a practical checklist — for ensuring smooth data migration and integration.

Why SAP Landscapes Complicate Mergers & Acquisitions

When two organizations with SAP systems merge, their IT landscapes rarely align perfectly. Here are the main reasons why SAP adds complexity to mergers and acquisitions:

Different SAP versions

One company may still be operating on SAP ECC while another has already migrated to S/4HANA or is in the process of transitioning. These versions have fundamentally different data structures, functionality, and integration capabilities. Reconciling them often requires extensive transformation, which increases project scope and risk.

Custom code and extensions

Over time, companies build unique customizations and enhancements to meet their business needs. These include Z-programs, custom reports, and user exits. During a merger, overlapping or conflicting custom code can lead to unexpected errors, process disruptions, and higher testing requirements.

Disparate modules and configurations

Each organization may use different SAP modules — finance, HR, supply chain, logistics — and configure them according to its own business processes. Consolidating these processes into a single model requires both technical migration and significant business process alignment between the merging entities.

Inconsistent master data models

Data about customers, vendors, and products is rarely standardized across organizations. For example, a company might classify vendors differently or use alternate naming conventions for the same materials. Without harmonization, these discrepancies lead to duplicate records, reporting inaccuracies, and compliance risks after the merger.

Regulatory and compliance requirements

M&A often spans multiple geographies, each with its own regulatory frameworks (such as GDPR, SOX, or local tax laws). SAP systems must be aligned to ensure compliance during and after integration. Misalignment could result in fines, delays, or operational restrictions.

Mix of legacy and cloud architectures

Modern enterprises often run a mix of on-premise SAP systems and cloud-based applications. In an M&A scenario; one company may be cloud-first, while the other relies heavily on on-premise infrastructure. Integrating these architectures requires careful planning to avoid performance bottlenecks, security vulnerabilities, or connectivity failures.

In short, SAP landscapes amplify the inherent complexity of mergers and acquisitions. Addressing these challenges early and systematically is essential for a smooth integration process.

Best Practices for Data Migration & Integration During SAP Mergers & Acquisitions

Conduct IT due diligence early

A comprehensive IT assessment lays the foundation for a successful M&A integration. This involves creating an inventory of all SAP and non-SAP systems, identifying their versions, documenting customizations, and evaluating system performance. Early due diligence uncovers potential incompatibilities, such as conflicting code bases or outdated hardware, allowing companies to plan mitigation strategies before integration begins.

Define the future-state architecture

It’s critical to design a target operating model that aligns with business goals. This means deciding whether to standardize on one existing SAP system, migrate both entities to S/4HANA, or adopt a hybrid approach. The architecture should account for scalability, cloud adoption strategies, and long-term business needs. Establishing this blueprint early avoids scope creep and ensures both IT and business leaders are aligned.

Make Сlean Сore a non‑negotiable principle of your target architecture. Avoid modifications to the S/4HANA core, extend only via released APIs/events and whitelisted extension points, and move differentiation to SAP BTP using in‑app or side‑by‑side extensibility. This keeps upgrades predictable and reduces post‑merger friction, because custom logic lives outside the digital core.

Harmonize and cleanse data

Clean data is the backbone of any integration. Start by profiling data across systems to identify duplicates, missing fields, and inconsistencies. Use Master Data Management (MDM) tools to standardize customer, vendor, and product information. For example, unify date formats, reconcile naming conventions, and align units of measure. A strong data cleansing effort reduces errors during migration and improves reporting accuracy after the merger.

Choose the right migration strategy

Selecting a migration strategy requires balancing risk, cost, and speed:

• Greenfield: This is the most direct path to a Clean Core. You build a brand-new SAP environment and migrate only clean, essential data from both companies. It forces business process re-engineering and eliminates all past technical debt, but it is also the most time-consuming approach.
• Brownfield: This approach upgrades an existing system and moves the other company's data into it. While faster upfront, it carries a massive risk: you inherit all the "dirty" custom code and complexity from the original system, directly undermining the goal of a Clean Core.
• Selective Transformation: This is the pragmatic choice for most M&A scenarios. It allows you to start with a clean system, but selectively migrate valuable historical data and processes from both entities. This approach balances the need for a clean, standard system with the reality of preserving critical business functions.

Organizations should conduct a cost-benefit analysis to determine the best approach for their unique scenario.

Plan for integration beyond SAP

M&A rarely involves SAP alone — most companies also rely on CRM, HR, or supply chain applications outside SAP. Developing an integration strategy ensures these applications communicate effectively with SAP systems. This often includes using APIs, middleware, or pre-built connectors. Planning for integration avoids data silos, ensures real-time visibility, and reduces the risk of business disruption during critical phases of the merger.

Establish governance and change management

Even the most well-planned technical migration can fail without strong governance. Set up a data governance framework that defines ownership, policies, and accountability for master data. In parallel, invest in change management to prepare employees for new processes and systems. Clear communication, training, and support ensure adoption across both organizations. Without governance and change management, mergers often suffer from poor user adoption and inconsistent data practices.

A Phased Roadmap for SAP M&A Success

An effective SAP merger and acquisition strategy requires a structured, phased approach. Breaking the journey into pre-merger, migration/integration, and post-merger phases ensures that risks are managed and benefits are realized.

Pre-merger phase: assessment & planning

This is the foundation stage where clarity and preparation make all the difference.

• System landscape assessment: Conduct a full inventory of all SAP and non-SAP systems across entities. This includes versions, customizations, data volumes, and integration points.
• Business process mapping: Identify overlaps, conflicts, and gaps in processes like finance, procurement, HR, and logistics.
• Risk & compliance review: Assess potential regulatory challenges (GDPR, SOX, HIPAA, etc.) and prepare mitigation strategies.
• Future-state architecture design: Define whether to consolidate into a single S/4HANA system, maintain hybrid systems, or take a phased selective transformation route.
• Project governance setup: Establish steering committees, assign owners, and align IT with business leaders to ensure buy-in.
• Extension classification: Catalog and score all extensions using Clean Core Levels (A–D) and flag high-risk items for remediation before cutover.
• Exception governance: Establish a Solution Standardization Board to approve deviations and enforce the Clean Core guardrails across both organizations.

The goal of this phase is to produce a comprehensive roadmap with clear milestones, budgets, and responsibilities.

Migration & integration phase: execute & consolidate

This is where plans become reality, and precision matters most.

• Data model consolidation: Standardize master data definitions for customers, vendors, materials, and financial accounts. This avoids duplication and ensures smooth reporting after the merger.
• Migration execution: Use migration templates, scripts, and automation tools to move data systematically. Depending on strategy (greenfield, brownfield, or selective), cutover activities will differ.
• Integration of applications: Connect SAP with third-party applications (CRM, HRM, SCM) through APIs or connectors. Decisions about batch vs. real-time sync should be finalized here.
• Testing cycles: Execute multiple rounds of unit, system, and regression testing. User acceptance testing (UAT) is especially critical to validate real-world scenarios.
• Change management rollout: Communicate changes to end-users, provide training, and support adoption. Misaligned teams are one of the biggest failure points in SAP mergers.

The goal in this phase is to ensure data integrity, business continuity, and minimized disruption during and after cutover.

Post-merger phase: stabilize & optimize

After the cutover, the focus shifts from execution to optimization and long-term success.

• System monitoring: Continuously track performance, transaction volumes, and integration flows. Early detection of issues helps maintain business continuity.
• Data quality audits: Conduct ongoing checks to identify duplicates, missing fields, or compliance violations in merged data.
• Process optimization: Streamline workflows to leverage synergies between the two entities. For example, unifying procurement processes or standardizing HR reporting.
• Regulatory reporting & compliance: Ensure merged systems meet all audit requirements. Document the process for external regulators and internal stakeholders.
• Continuous improvement: Identify areas for automation, advanced analytics, or cloud adoption to maximize ROI from the merger.

This phase ensures the merged organization moves from “just functional” to optimized and future-ready.

How DataLark Accelerates SAP Mergers & Acquisitions

M&A projects involving SAP landscapes are high-stakes, time-sensitive, and resource-intensive. Traditional approaches often rely on manual effort, heavy custom coding, and siloed tools. Platforms like DataLark bring a different approach: accelerating outcomes with automation, pre-built templates, and low-code workflows.

Key ways DataLark simplifies SAP M&A

• Pre-configured SAP + non-SAP connectors
  • Out-of-the-box connectivity to SAP ECC, SAP S/4HANA, SuccessFactors, Ariba, as well as non-SAP systems (Salesforce, Workday, Oracle).
  • Eliminates the need to build fragile custom interfaces during the integration crunch.
• Migration templates & best-practice playbooks
  • Ready-made templates for master data harmonization, finance consolidation, and material master mapping.
  • Reduces setup time and ensures proven methodologies are leveraged in the migration process.
• Low-code / no-code workflows
  • Business analysts — not just developers — can configure data pipelines, transformations, and validation rules.
  • Speeds up collaboration between IT and business users while lowering dependence on scarce ABAP or BASIS resources.
• Real-time integration & monitoring
  • Supports both batch synchronization and real-time data exchange.
  • Dashboards track migration progress, error logs, and reconciliation in a transparent, auditable way.
• Data quality, validation & governance
  • Built-in cleansing, deduplication, and validation ensure migrated data meets compliance and business standards.
  • Role-based access controls ensure data privacy is protected throughout the project.

Together, these capabilities transform SAP merger and acquisition projects from high-risk undertakings into controlled, transparent, and efficient programs.

Case Study: Accelerating an SAP M&A Integration with DataLark

Background

A multinational manufacturer with operations in Europe and North America acquired a competitor to expand its market share. Both companies ran SAP, but on different platforms:

• The acquirer was on SAP ECC with heavy customizations.
• The acquired company was running SAP S/4HANA Cloud.

Beyond the SAP core, both organizations also had non-SAP systems in HR, CRM, and supply chain, making integration a formidable challenge. The leadership team set a tight deadline: achieve system consolidation and unified reporting within nine months of deal closure.

Challenges

• Conflicting master data (vendors, customers, product codes).
• Different versions and architectures (on-premise ECC vs. cloud S/4HANA).
• Complex integration with third-party logistics and CRM systems.
• Risk of business disruption in critical functions like order-to-cash and procure-to-pay.

How DataLark helped

• Rapid landscape assessment: DataLark’s connectors automatically profiled both SAP environments, cataloging custom objects, data volumes, and integration points in weeks instead of months.
• Unified data model: Using pre-configured MDM templates, the project team harmonized 120,000+ material master records and deduplicated 80,000+ vendor/customer entries.
• Migration acceleration: Low-code workflows enabled functional consultants (not just developers) to configure transformation rules, cutting down on custom coding.
• Real-time integration: During the transition, DataLark set up APIs to sync orders between ECC and S/4HANA so both businesses could operate without disruption until cutover.
• Testing & validation: Automated reconciliation dashboards flagged mismatches, reducing test cycles by 50%.
• Cutover confidence: The final migration weekend was executed with zero critical defects, thanks to dry-run simulations and automated error handling.

Results

• 40% faster master data harmonization compared to industry benchmarks.
• 50% reduction in testing time, freeing up business SMEs for higher-value tasks.
• Zero major business disruptions, ensuring order fulfillment and vendor payments continued smoothly.
• Project completed within 8 months, ahead of the board’s deadline.
• Enforced Clean Core: no modifications to the S/4HANA core; custom logic moved to BTP services and in‑app extensions using released APIs and events.

By leveraging DataLark’s automation, pre-built templates, and real-time integration, the manufacturer turned a potentially risky SAP M&A project into a controlled success story — delivering business continuity and accelerated synergy realization.

Conclusion & Key Takeaways

Handling mergers and acquisitions in SAP is not just an IT project — it’s a business-critical transformation. Organizations that treat SAP M&A as a structured, phased journey, supported by the right tools and platforms, are far more likely to achieve seamless integration, realize synergies quickly, and position themselves for long-term success.

Here are your key takeaways from this blog post:

• Thorough preparation is essential: Success begins long before migration starts. Conducting detailed IT due diligence, mapping processes, and designing a unified future-state architecture are critical for reducing surprises later.
• Data quality determines success or failure: Master data harmonization, cleansing, and validation cannot be an afterthought. Clean, standardized data ensures that finance, HR, procurement, and logistics processes run smoothly after the merger.
• Choose the right migration & integration strategies: Every SAP merger and acquisition is unique. The choice between greenfield, brownfield, or selective transformation — and between batch or real-time integration — should reflect both technical realities and business priorities.
• Governance & change management matter as much as technology: Clear ownership, defined roles, and transparent communication between merging entities help prevent misalignment. Engaging business stakeholders ensures the technology transition delivers real business value.
• Platforms like DataLark multiply efficiency: With pre-built connectors, templates, and low-code workflows, DataLark reduces manual effort, accelerates timelines, and minimizes risk. Real-time monitoring and validation bring confidence at every stage of the migration journey.
• Post-merger optimization unlocks long-term value: The journey doesn’t end at cutover. Continuous monitoring, process optimization, and compliance reporting ensure that the new, unified SAP landscape supports growth and innovation.

Ready to simplify your next SAP merger or acquisition? Get in touch with DataLark today and see how we can help accelerate your integration journey.