Additional Blogs by SAP
Showing results for 
Search instead for 
Did you mean: 
0 Kudos

                       Your M&A strategy may be missing something

Mergers and Acquisitions are a major component of most growth strategies. But studies have indicated that a large percentage of these deals do not provide the value that was expected. Why is that? Most large organizations have a sophisticated approach to determining what companies to buy, and the ROI that should be gained from this purchase. What may be missing is a strategy to bring these newly created subsidiaries on board quickly, cost effectively, and in a way that ensures they leverage Corporate services and capabilities for competitive advantage. As the Cloud movement accelerates, many companies are finding that acquisitions are a perfect place to implement a 2-tier ERP strategy based on Intelligent Cloud ERP.

Cloud ERP leads to fast ROI post acquisition. There is no upfront investment in IT infrastructure. Implementation is fast and you don’t need a lot of specialized IT skills. Cloud solutions are easy to learn and easy to use, which drives rapid adoption. By standardizing on one solution set, from one vendor, for all acquisitions, you reduce complexity, and can drive IT costs down.

Intelligent ERP helps the acquisition thrive. By delivering a high performing ERP solution to your new subsidiary, you maximize the probability of success. Best business practices, embedded in the application, drive world class operational excellence. Machine Learning helps optimize and automate standardized processes. Digital assistance helps drive efficiency. Embedded analytics enable faster more effective insight-to-action. Predictive capabilities accelerate problem solving and ultimately, deliver a better customer experience. Lastly, a flexible digital platform supports changing business models and helps the acquisition take maximum advantage of the digital economy.

A Two-Tier ERP strategy, with pre-built integrations to Corporate, speeds on-boarding and helps the acquisition leverage services and resources. Financial consolidations are simplified. Increased real-time visibility of the acquisition’s cash flow needs helps optimize working capital. Corporate services, like procurement, extended out to the acquisition, reduce costs. Leverage of Corporate resources, like manufacturing and distribution facilities, delivers a better customer experience, at a cheaper price.

Fast implementation of Corporate governance speeds control. Cloud implementations drive accelerated use of best practices for both Finance and Operations. This leads to quicker control over the acquisition.  Real time subsidiary transparency and analytics ensure better overall management. Built in support for country taxes, regulations, and local practices ensures that the new acquisition easily adopts all required local laws.