Advisory

M&A and Divestiture Services

ISG helps enterprises minimize risk, reduce stranded costs and unlock hidden value across the entire merger and divestiture lifecycle.
 

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Top Story

Index Insider: What Acquisitions Reveal About M&A Priorities in 2H24 and Beyond

M&A has long been a key driver for revenue growth in the IT and business services sector.

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What’s at Stake?

Mergers, acquisitions and divestitures are complex – and costly when mishandled. Common pitfalls include: 

  • Transitional service agreement (TSA) delays and late notices driving unexpected costs

  • High stranded IT and license costs 

  • Missed or misplaced contracts slowing Day 1 readiness 

  • Poor communication with suppliers and new entities 

  • Insufficient resources to manage execution 

ISG helps you sidestep these risks with early vendor engagement, our proven playbook and expert contract lifecycle management. 

Support at Every Stage of the M&A Journey 

Whether you’re planning an acquisition, executing a divestiture, or stabilizing operations post-Day 1, ISG supports you at every step. 

Our proven methodology: 

  1. Assess – Opportunity scans (looking for areas to improve), due diligence (clearly defining what is in scope and the state of the supplier contract landscape ) and financial impact analysis (impact to current costs and planning for the transition costs).

  2. Design – Strategy and target operating model development, detailed definition of service and program planning included.

  3. Integrate/Separate – Contract separation, TSA planning, program management and systems transition.

  4. Transform – License optimization, process redesign and synergy / non-synergy capture.

  5. Operate – Governance, risk mitigation and ongoing optimization.

Tailored Services for Every Deal Type

Every transaction is different. We tailor our approach to deliver value for mergers, spin-offs, and everything in between. 

Merger Integration – Synergy and de-synergy assessments, TSA negotiation, post-merger planning and compliance analysis 
Divestiture Support – New contract negotiations, TSA structuring and license use alignment 
Spin-Off Execution – Infrastructure planning, contract transition and parent company support 
Captive/Sub Rollups – Strategy and commercial impact assessments, rule changes and integration/separation execution 
Program Management – Develop & run the transition program, bridge between and manage stakeholders to meet TSA deadlines.
Cost Management - Defining, tracking and reporting on strategic key metrics to ensure TSA costs are transparent and within bounds.

Why Leading Enterprises Choose ISG 

When the stakes are highest, global enterprises trust ISG. With more than $475B in sourcing deals advised and experience across thousands of complex integrations and separations, we bring unmatched data, independence and expertise. 

Unmatched Data: Largest repository of IT benchmarking data — across software, services, and connectivity 
Independent Advice: Vendor-agnostic, no conflicts of interest 
Deep Expertise: Specialists in contracts, IT and transformation 
Proven Results: Track record with Fortune 100 and Global 2000 leaders 

Real Results from Complex Projects 

The market has moved from ambition to accountability.

AI investment is accelerating, but results remain uneven. Only one in four initiatives is meeting revenue impact expectations, at an average spend of $1.3M per use case. Enterprises are no longer asking whether AI works. They are being asked to prove that it pays.

What We Deliver

AI strategy, governance and intelligence, built for execution.

Autonomous Enterprise

Operations built for autonomous execution, not retrofitted for it.

We help you identify where AI agents deliver the most value, restructure workflows around them and build the accountability models that keep autonomous execution auditable. The enterprises that win won't be the ones that reacted. They'll be the ones that designed for it first.

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Autonomy-Level Pricing

Pricing that reflects how AI-enabled services are actually delivered.

We give enterprises transparent, benchmarkable pricing models that tag each resource unit with the autonomy level used to deliver it. As AI capability advances, your pricing keeps pace. Both buyers and providers can quantify what that progress is worth.

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AI & Software Intelligence

Build-versus-buy decisions grounded in what AI is actually delivering.

We bring analysis of more than $2.6 billion in tracked AI spend to every sourcing decision. Procurement, technology and finance leaders get the independent intelligence to rationalize vendor portfolios and hold providers accountable to measurable outcomes.

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AI Governance

Governance that accelerates AI adoption rather than constraining it.

We embed controls at the point of data creation, define accountability for autonomous actions and build adaptive frameworks that keep pace with AI without impeding it. Enterprises that get this right don't just manage risk. They build the trust that lets them scale faster.

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AI Strategy

AI investment aligned to where impact is most achievable.

We ground strategy in research across 2,400 enterprise use cases, aligning investment to where impact is proven and designing the data, talent and governance foundations that move AI from pilots into the workflows that drive commercial results.

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AI Maturity Index

A clear view of where you stand and a roadmap to where AI starts delivering.

We benchmark your AI readiness against peers across 75 countries, identify the dimensions holding you back and give you a personalized roadmap to close the gap.

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The market today

Enterprise AI has moved out of IT and into the revenue line.

AI investment is shifting decisively toward revenue-generating functions. CRM automation, sales enablement and forecasting have replaced chatbots and IT productivity tools as the leading use case priorities, reflecting enterprise recognition that productivity gains alone do not satisfy board-level scrutiny. At the same time, use cases in production have doubled since 2024, and the portfolio is diversifying rapidly, with over 300 distinct function and industry-specific use cases now in active deployment.

ISG research across 2,400 enterprise use cases shows that the strongest AI returns are currently concentrated in compliance, risk management and quality control, not in the growth and cost outcomes most enterprises originally set out to achieve

The gap between where enterprises are investing and where AI is actually delivering is the defining commercial tension of 2025. Organizations that close it by targeting functions with structured, revenue-attributable data and clear ROI measures will establish performance benchmarks that compress the window for competitors still cycling through pilots. The standard is being set now.

Where enterprises are feeling the pressure
  • Business outcomes are lagging AI ambition
    Enterprises are scaling Al faster than they are realizing value from it. The number of use cases in production doubled between 2024 and 2025, yet only one in four initiatives is meeting revenue impact expectations, and broad cost savings remain elusive. At an average spend of $1.3M per use case, the ROI gap is sharpening board-level scrutiny and forcing a harder question: are we building Al for impact, or for activity?
  • Data infrastructure exposing deferred investment
    Al does fail in isolation. It fails on the foundations beneath it. Most enterprises are running modern Al on architectures built for reporting and compliance. Generative and agentic Al demand real-time contextually rich, governed data at the point of use. Without it, pilots stall and value dissipate before it reaches the business.
  • The barrier to scale is organizational, not technical
    Organizational readiness as the bigger constraint on Al adoption, not talent or tooling. Workflows haven't been redesigned. Decision rights haven't shifted. Enterprises that treat Al as a pure technology deployment, without investing in the human side of adoption, consistently report underwhelming ROI.
  • Agentic AI is outpacing governance
    As Al moves from generating outputs to executing tasks autonomously, the governance gap widens. Agentic Systems introduce a new class of risk that static compliance frameworks were never designed to catch. Governing what Al does, not just what it produces, is now a business-critical requirement.
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