Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

0

Share

Download to read offline

Training for the M&A Marathon

Download to read offline

Mergers and acquisitions have always been, and will always be, a powerful tool for companies to get lighter—to generate more revenue at less proportional cost. It is no surprise then that acquiring companies increasingly are scrutinizing the potential synergies, before and after the acquisition. Those include business processes that are IT intensive and which can be combined (such as online marketing), data centers and IT infrastructure, and the professionals to keep the processes and systems going.

Related Books

Free with a 30 day trial from Scribd

See all
  • Be the first to like this

Training for the M&A Marathon

  1. 1. Training for the M&A Marathon Copyright © 2017 Tata Consultancy Services LimitedMay 2017 Dave Jordan Vice President of Business Consulting, Consulting and Enterprise Solutions PERSPECTIVES VOLUME 8
  2. 2. M&A: Behind the Scenes M&A helps companies generate more revenue at lower costs Such strategies help leverage synergies between two or more firms Securing those synergies by quickly integrating the firms is a challenge
  3. 3. The Price of Being Unprepared An M&A is like a marathon: you need to prepare extensively well in advance. Not planning ahead can cause three major problems: Synergies will take longer to generate Superior business processes and systems that provide a competitive advantage might be discarded in favor of inferior systems Valuable IT people might be lost to the competition
  4. 4. Unlocking the Synergies IT is often ignored during due diligence, even though IT infrastructure and applications power critical business activities Integrating the IT infrastructure is the biggest challenge after an M&A To unlock the synergies, companies need to first focus on quickly integrating the IT-intensive business processes and functions
  5. 5. Become an M&A Powerhouse 1. Build an M&A CoE 2. Measure synergies 5. Narrow the integration focus 4. Standardize systems and business processes 3. Know the infrastructure 6. Embrace M&A
  6. 6. 1. Build an M&A Center of Excellence Build a CoE to increase the chances of success, especially when mergers become routine and involve IT-related processes CoEs should employ core staff and build skills critical to the function they support The team should learn from every deal and refine best practices
  7. 7. 2. Create Metrics for Synergies Time is a great killer of potential synergies, especially in merging IT- related operations Organizations need to move fast to gain from and retain benefits from integration Set up an aggressive timetable to ensure integration efforts are swift and effective
  8. 8. 3. Know Your Infrastructure Starting to look for this information during the integration process can add months to the integration timetable Organizations need an in-depth understanding of their infrastructure to ensure their best processes are not lost in M&A Document the different components of the infrastructure to save up to 40% of the time taken to integrate after an M&A deal i
  9. 9. 4. Standardize Enterprise Systems M&A deals bring together different kinds of customized software Integrating such systems is time consuming and difficult Adhere to a policy of standardized enterprise systems to make IT integration easier
  10. 10. 5. Narrow Your Integration Focus Only a few processes truly matter to a company’s marketplace performance In most companies, 70% to 80% of their processes and systems are commodities—infrastructure that does not distinguish the company Identify processes and systems that are in the core 20% to 30%, then spend 70% to 80% of your time deciding how to integrate them
  11. 11. 6. Embrace Continuous Improvement For companies in mature and fast- consolidating markets, M&A is unavoidable Mindsets must change—M&A is a necessity to keep companies competitive Organizations need to have a positive outlook and constantly upgrade their knowledge about IT
  12. 12. Companies with M&A as a key growth strategy need to prepare rigorously for the day when they buy another company They need to hone their integration skills and learn to capture synergies quickly Companies that rise up to this challenge will have a powerful advantage in a world driven by scale and cost advantages Winning the M&A Race
  13. 13. Copyright © 2017 Tata Consultancy Services Limited Training for the M&A Marathon Contact a Consultant Read the Article

Mergers and acquisitions have always been, and will always be, a powerful tool for companies to get lighter—to generate more revenue at less proportional cost. It is no surprise then that acquiring companies increasingly are scrutinizing the potential synergies, before and after the acquisition. Those include business processes that are IT intensive and which can be combined (such as online marketing), data centers and IT infrastructure, and the professionals to keep the processes and systems going.

Views

Total views

399

On Slideshare

0

From embeds

0

Number of embeds

1

Actions

Downloads

6

Shares

0

Comments

0

Likes

0

×