Mergers & Acquisitions

Procurement undoubtedly plays a critical role in making a merger or acquisition attractive and successful. After all, nearly 50 percent of the synergy benefits in M&A deals often come from integrating suppliers and purchasing processes.

Mergers & Acquisitions

How procurement can drive greater synergies and savings

Download White Paper

However, achieving these goals is easier said than done. Integrating disparate and global supply sources, contractual relationships, e-procurement systems, procurement teams and company cultures are some of the many intricacies involved in realizing the synergy benefits. Along with tight deadlines and lofty expectations from shareholders, CPOs are faced with all these challenges at once, during an M&A deal.

  • Pre-Merger Diagnostics

  • Post-Merger Integration

Pre-Merger Diagnostics

With our unmatched strategic sourcing experience, strong consulting capabilities and automation tools, we can quickly and accurately help identify the potential savings from procurement and validate the M&A business case. Our approach includes:

  • In-depth spend analysis of the merging entities using our spend analysis tool
  • Identifying quick-win opportunities by leveraging increased scale
  • Implementing the better of the two contracts and supplier relationships for each category
  • Identifying medium- to long-term opportunities by integrating procurement organizations and processes and rationalizing products, specifications and demand
  • Preparing a blueprint for post-merger organization integration, including new operating model, roles, processes, systems and change management needed 

Post-Merger Integration

Post merger, we help achieve the identified benefits through accelerated strategic sourcing programs that include; first 100-day cash-flow savings and 6 to12-month accelerated strategic sourcing programs. A parallel track of organization integration is carried out that includes designing the new procurement organization, setting up joint category management processes, integrating procurement systems, developing new processes, setting up a joint governance and performance management system and crafting the right communication and change management strategies.

Why GEP?

GEP combines an optimum blend of analytical rigor, solid execution capabilities and the experience needed to drive measurable value from procurement in M&A deals. Whether it is accurately identifying the potential benefits, realizing quick cash-flow savings or integrating the different procurement entities into a new high-performance procurement organization, GEP brings end-to-end capabilities.

M&A Clean Room 

M&A clean rooms, also known as data rooms, allow enterprises to create a virtual or physical repository of all relevant organizational data, including spend data and other confidential information.  

GEP helps enterprises set up an M&A clean room and clean team that ensures confidentiality for both sides. This process aids development of granular, ready-to-launch execution plans.

Learn More

GEP has helped several companies realize significant benefits and seamlessly integrate their procurement functions. Through our pre-merger diagnostic service, we help develop a robust integration plan and detailed savings realization plan for the short, medium and long term. Post merger, we help achieve the identified savings through accelerated strategic sourcing and executing the integration plan.

 

RELATED SERVICES

RECOMMENDED