Services
M&A Procurement Support
Procurement is an important step in any Merger and Acquisition (M&A) and has the ability to drive M&A activity and empower teams to arrive at an accurate valuation, understand risks and recommend risk mitigation for a successful integration. Mounting Procurement as the point of convergence prior to a Merger and Acquisition can enhance the benefits, reduce time and improve overall results in the midst of such a flurry.
McKinsey Consultants
“Most companies wait until after a merger closes to pursue procurement synergies. But time is money, and several companies have shown how to get a head start on capturing value.”
It’s a flawed practice to engage Procurement until after an M&A is complete. Not engaging Procurement during pre-M&A due diligence, results in missing out on opportunities to get ahead of Procurement synergies. Costmap’s Procurement experts can help companies get a jump start on their growth strategies by enabling Procurement team before M&A activities close. By aligning with organisation’s data-room activities, our M&A support team can get the ball rolling on quick-win cost reduction opportunities while aligning supply management strategies with the overarching goals of the soon-to-be newly formed enterprise.
Effective strategy
M&A is usually an effective strategy for accelerating growth and driving revenue. Its success, however, hinges upon the alignment of all parties and the company’s overarching growth strategy. As a unit capable of touching nearly all aspects of the business, every M&A activity presents a tangible opportunity for Procurement function to shine.
Minimize cost
It is therefore logical in such situations for Procurement to draw a lot of curiosity since companies aim to minimize their total cost to operate more efficiently. During M&As, employees are more open to change, suppliers are eager to increase sales volumes, and shareholders are more willing to accept early investments – all providing Procurement with a prime opportunity to gain stakeholder alignment and sponsorship to capitalize on supply chain momentum.
M&A activity
Any M&A activity is a significant financial undertaking, as well as in time and resources. As a function which has an insight into the marketplace, Procurement is ideally positioned to drive efficiency and synergies the newly integrated organisation.
Costmap’s spend management experts present an ideal opportunity to support all phases of M&A activity.
Costmap can support your organisation’s M&A activities in the following manner:
- Collaborate with other functions involved in due diligence to understand the company’s strategic direction as a unified organisation.
- Plan Procurement’s role in supporting the M&A initiatives.
- Collect initial data to begin identifying short- and long-term cost reduction opportunities.
- Support planning of Procurement-specific strategic initiatives.
- Analyzing merged company’s spend to identify cost reduction opportunities.
- Develop and implement strategic category management plans.
- Rationalize Suppliers and Scope by evaluating contracts.
