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Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Acce...
Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Acce...
Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Acce...
Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Acce...
Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Acce...
Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Acce...
Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Acce...
Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Acce...
Learn more about how the cloud can
lift M&A value in your organization with our full report:
Copyright © 2016 Accenture Al...
Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Acce...
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Driving Growth and Competitiveness: Can The Power of Cloud Lift M&A Value Into The Stratosphere?

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Transformative as-a-service capabilities are enabling leading acquirers to capture and lock-in synergies at a depth and speed previously unseen in historic merger integration programs.

As the number of deals continues to proliferate, enterprise IT will continue to serve as either an enabler or a barrier to realizing value in M&A. But with new cloud platforms and Xaas delivery models, transformation during integration will unlock new opportunities, accelerating deal value and boosting overall competitiveness. Making it work will require CIOs to be involved pre-deal as part of the M&A strategy team—as one of the ‘co-pilots’ in the process.

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Driving Growth and Competitiveness: Can The Power of Cloud Lift M&A Value Into The Stratosphere?

  1. 1. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Driving growth and competitiveness: Can the power of cloud lift M&A value into the stratosphere?
  2. 2. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. +M&A A record $4.7 trillion in M&A deal activity globally was seen in 2015 with a triple- digit percentage increase year over year in the number of deals $10+ billion.* Cloud Transformative as-a-service capabilities are enabling acquirers to capture and lock-in synergies at unprecedented depth and speed. *Source: http://dmi.thomsonreuters.com/Content/Files/4Q2015_Global_MandA_Financial_Advisory_Review.pdf Driving growth & competitiveness in M&A Two forces converge
  3. 3. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Cloud serves as a catalyst to value acceleration and transformation Three key factors must be addressed to leverage the power of cloud in M&A: Identify new sources of M&A value enabled by the cloud Engage the CIO—as a co-pilot in the cockpit—at the pre-deal stage Accelerate the enterprise’s cloud strategy and migration to the cloud Sky high value in M&A Accelerating deal value
  4. 4. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Cloud accelerates the IT delivery in M&A by 30 percent on average and reduces the IT costs by nearly the same amount.* Cloud infrastructure as-a-service allows for transformation as organizations: • Leverage XaaS delivery enabled by cloud to perform business functions instead of undergoing a complex integration • Reduce lead time to stand up core IT services and shift financial delivery from upfront CAPEX to ongoing OPEX • Take advantage of potential parallelization of projects and higher throughput *Source: 2016 Accenture Strategy M&A Analysis Speed to value Propelling a transformative leap forward in how IT enables new M&A value and the business post-deal
  5. 5. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Relegating CIOs to the M&A sidelines results in: • Lost opportunities to weigh in on preliminary valuations and propose alternate transaction structures • Inability for CIOs to react to opportunities and threats • Missed potential for accelerated M&A activity and greater agility in enabling the business CIO in the cockpit Engaging CIOs upfront at the pre-deal state to determine how cloud can add new value to the deal
  6. 6. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Comments and analysis are based on Accenture Strategy internal research and an illustrative deal value of $10B. Results are dependent upon the targeted level of integration and use of cloud. Benefits do not account for the time value of money. Cumulative BenefitsIllustrative Deal Value ($M) $10,000 Integration Cost Savings One time integration costs IT integration costs ignoring Cloud Estimated cost savings from Cloud (High, 45%) Estimated cost savings from Cloud (Low, 10%) ($M) 500 150 68 15 Synergy Uplift Targeted annual synergies starting in year 3 Targeted synergies from IT ignoring Cloud Estimated add’l synergies from Cloud (High, 35%) Estimated add’l synergies from Cloud (Low, 5%) ($M) 150 45 16 2 CIO in the cockpit Delivering $100M+ in benefit from cloud platforms and as-a- service models
  7. 7. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Cloud can help overcome the typical disruption of an at-scale acquisition: • A transition to the cloud during a merger integration program can be a faster and less costly option • Cloud is a must have when a merged new company’s ongoing M&A agenda requires a scalable platform to integrate into • IT shifts from a commodity role to a multi-speed business partner Accelerated transition to the cloud Shortening time to deal close with cloud to make every second count Nearly 75% of industry is estimated to be behind in starting their migration to the cloud.* *Source: 2016 Accenture Strategy M&A Analysis
  8. 8. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. • Develop the business case for the new opportunities, identifying the additional synergies that are generated from the cloud. • Establish strong governance that’s calibrated and equipped to support a cloud-enabled M&A plan. • Revisit the M&A strategy with a view on how leading with cloud can play a part in creating new opportunities and adding value to deals. • Plan the integration or divestiture addressing any gaps or risks to achieve the M&A objectives and identified synergies. Involving the CIO as part of the M&A strategy team will enable organizations to: Cloud and the M&A horizon Turning IT into an enabler of deals and value realization +
  9. 9. Learn more about how the cloud can lift M&A value in your organization with our full report: Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. technology.strategy@accenture.com Driving growth and competitiveness: Can the power of cloud lift M&A value into the stratosphere?
  10. 10. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. @AccentureStrat About Accenture Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions—underpinned by the world’s largest delivery network—Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With more than 358,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com About Accenture Strategy Accenture Strategy operates at the intersection of business and technology. We bring together our capabilities in business, technology, operations and function strategy to help our clients envision and execute industry-specific strategies that support enterprise wide transformation. Our focus on issues related to digital disruption, competitiveness, global operating models, talent and leadership help drive both efficiencies and growth. For more information, follow @AccentureStrat or visit www.accenture.com/strategy Join the conversation

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