Mergers & Acquisitions Services

GEP’s SUPPLY CHAIN- AND PROCUREMENT- CENTRIC M&A INTEGRATION PRACTICE

What drives M&A? Obtaining new financial resources. Lowering costs. Securing top talent. Expanding market share. Accelerating growth. The most successful mergers and acquisitions harness the unique synergies of each enterprise involved to create maximum value. And with external spend typically driving the lion’s share of a company’s costs, the procurement and supply chain landscape must be viewed as a significant source of opportunities for M&A synergy.

But the opportunities don’t end at pinpointing and delivering hard-dollar savings for the newly combined entities. Seamless Day 1 integration of people, process and technology is paramount for mitigating risks. This is where our multi-layered approach truly sets us apart: We offer bold strategy, clean room provisioning, cutting-edge cloud-native software and comprehensive managed services, led by a passionate team of professionals with unrivaled supply chain and procurement expertise.

Driven by our core mission — to offer our clients the most innovative digital supply chain and procurement solutions to transform their business — our world-class M&A practice brings an unparalleled record of unlocking maximum supply chain and procurement value from M&A engagements.

OUR CUSTOMIZED APPROACH

  • PMO and Governance

  • M&A Procurement Strategy

  • M&A Supply Chain Strategy

PMO and Governance

Organizational Advisory

Develop a blueprint for the new supply chain and procurement organizational structure that puts the right people in the right place on Day 1.

Clean Room Environment

Help to set up a fully encrypted, cloud-based M&A clean room, supported by a clean team. This assures confidentiality for all parties and facilitates the development of granular, ready-to-launch execution plans.

M&A Procurement Strategy

Synergy Identification and Execution

Integrate automated data harmonization and spend cube analytics modeling tools with underlying ERP + eSourcing platforms to support rapid negotiation and synergy execution.

Post-Merger Integration

Immediately focus on integrating the combined entity’s people, processes and technology to ensure maximum value capture and risk mitigation.

M&A Supply Chain Strategy

Supply Chain Network Consolidation

Redefine the supply chain network by mitigating operational redundancies, leveraging technological advancements and executing investments to form an integrated NewCo.

Warehouse and Inventory Optimization

Improve inventory management capabilities and create more responsive and efficient supply chains that ensure product availability and optimum service levels while reducing investment in working capital.

OUR TRACK RECORD

GEP is proud to have helped Fortune 500 companies in diverse industries and verticals smoothly integrate their supply chain and procurement functions at all stages of an M&A deal.

M&A Clean Room

In the high stakes of M&A, a clean room can be a game changer.

Learn More

We draw on end-to-end capabilities to accurately identify valuable opportunities, realize quick cash-flow savings and skillfully integrate distinct procurement entities into new, high-performance procurement operations. Our systematized process for M&A success draws on rigorous analysis, precise execution and the experience gained from steering hundreds of successful M&A executions worldwide.

Our track record includes:

  • Supporting the merger of a Fortune 100 conglomerate and a Fortune 100 chemicals company, implementing a synergy execution program that achieved $1.2 billion in direct and indirect spend savings.
  • Leading the synergy efforts for a Fortune 50 pharma company’s $34.3 billion acquisition of two health care companies.
  • Managing a multinational biotech company’s acquisition of a large biotech enterprise. GEP helmed the clean room work and captured synergy savings goals of $110 million over two years.
  • Crafting a bold strategy that delivered significant synergy savings in a large clothier’s acquisition of an apparel retail company. GEP completed more than 100 sourcing projects in record time.

OUR PROCESS

  • Establish Integrated Governance — ‘One’ Organization Mindset
  • Identify Clean Room Synergy
  • Synergy Execution — Delivering on Identified Synergies
  • Synergy PMO
  • Post-merger Integration/Spin Support

Establish Integrated Governance — ‘One’ Organization Mindset

 

Establish Integrated Governance — ‘One’ Organization Mindset

  • Develop a global vision
  • Craft global and regional governance structures
  • Align executive sponsors, business unit leaders, budget owners and senior leadership
  • Optimize group-level performance

Identify Clean Room Synergy

 

Identify Clean Room Synergy

  • Establish a clean room
  • Collect and analyze spend/contract data
  • Identify and classify projects for quick wins, standard and complex sourcing
  • Finalize pipeline and opportunities – workshops
  • Assign the right targets and ownership
  • Develop project charters with implementation strategies

Synergy Execution — Delivering on Identified Synergies

 

Synergy Execution — Delivering on Identified Synergies

  • Merge deep category capabilities and insights to create synergy opportunities
  • Develop robust frameworks
  • Deploy advanced analytics to assess the holistic status
  • Coordinate execution across divisions/business units
  • Strategically manage global supplier relationships
  • Pursue supplier-driven innovation
  • Facilitate end-to-end pipeline execution and rapidly achieve targets

Synergy PMO

 

Synergy PMO

  • Align governance process design
  • Deploy tools to capture progress updates and track integrated value
  • Set up management dashboards and reports
  • Monitor execution speed, tracking against 30-, 60-, 90-day targets
  • Identify risks and resolutions

Post-merger Integration/Spin Support

 

Post-merger Integration/Spin Support

  • Design new procurement organization
  • Set up joint category-management processes
  • Integrate procurement systems and operations (KT, PTA, etc.)
  • Create joint governance and PMS
  • Devise communication and change management strategies

 

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