Businesses understand the need to make substantial expenditures in IT to stay competitive in the ever-evolving global market. This study specifically assesses the pre-implementation challenges ERP at the MSA Business Group in Ethiopia. The research aimed to evaluate MSA Business group's readiness for deploying an ERP system before the actual installation, using the Extended McKinsey Model as the analytical tool and to evaluate the company's present organizational structure, business processes, and technology infrastructure. To develop a new extended McKinsey model for ERP Pre-implementation. A mixed study approach was used to discover and analyze elements and variables influencing the successful implementation of an ERP project in the specific firm. The sample size of the research was determined by selecting respondents purposefully. The data was obtained using a google form questionnaire composed of 84 close-ended questions with Likert scale. Based on the results, among the 42 variables 31 of them were shown to have positive and significant connection with the dependent variable which is ERP implementation readiness. The ranking of variables for ERP installation readiness assessment was published, with Security, Structure, Strategy, Staff, and Service Management placed 1st, 2nd, 3rd, 4th, and 5th, respectively. The ANOVA test result revealed that, the value of R and R2 obtained under the model summary was statistically significant. The multiple linear regression study found that, 11 factors have a statistically significant positive link to predict ERP installation readiness and this results the company can implement the ERP system. Keywords: ERP pre-implementation, Extended McKinsey Model, ERP pre-implementation Readiness, McKinsey 7S Model.