Pre-Merger Procurement Consulting Case Study
M&A Procurement Case Study
Here’s just one example of how Source One’s world-class Procurement consultants helped an organization establish merger-ready operations and carry out M&A activity effectively.
Recent M&A activity and strong pressure from the C-suite compelled a Food and Beverage company to centralize its indirect sourcing efforts and produce sustainable cost savings across a number of categories. In doing so, they hoped to make Procurement a value-adding business function rather than an administrative nuisance.
For each relevant category, Source One conducted spend analyses, contract reviews, stakeholder interviews, and benchmarking exercises to discover value generating opportunities. In collaboration with the Procurement team and its stakeholders, Source One developed a sourcing roadmap consisting of waves of projects – based on an optimal blend of project timelines and complexities to deliver quick wins and build momentum.
Across a two-year period, Source One undertook a variety of strategic sourcing projects on the client’s behalf. The projects varied in complexity – some involved benchmarking and incumbent negotiations, others involve competitive bidding, and still others involved extensive requirements building and go-to-market strategy development. Ultimately, Source One and the client produced average savings of 11% across several spend categories.
Prepare Procurement for Mergers and Acquisitions with Source One
Empower Procurement to lead the way through pre-M&A activity.
There are countless reasons a business might merge with another or carry out an acquisition, but they’ve all got the same goal in mind. They’re looking to capture synergies, pool their combined resources, and build a more efficient, effective organization. This is all easier when Procurement plays a leading role throughout both the planning and execution stages.
Source One has the experience and spend management expertise to make Procurement a value generator throughout pre-M&A activities. With Source One’s support, organizations go into Mergers and Acquisitions prepared for quick integration and long-term success. From quick win cost reduction opportunities to comprehensive strategic initiatives, Source One’s pre-M&A Procurement services are
Pre-M&A Procurement Services
Organizations realize the benefits of M&A activity more quickly when Procurement is enabled with:
- Governance: Source One will establish a framework to provide visibility across all workstreams, track the creation of value, and ensure the participation of the entire business.
- Focus: Source One will identify and prioritize the areas that are truly impactable and most likely offer genuine value.
- Team: Source One will ensure you’ve got a solid mix of resources with project management, analysis, and consultative skills alongside subject matter expertise.
- Collaboration: Source One will engage stakeholders and suppliers early and often and communicate consistently to ensure their continued buy-in.
Source One’s pre-M&A consultants have what it takes to:
- Conduct thorough spend analyses to begin identifying and prioritizing opportunities.
- Roadmap opportunities for leveraging your combined spend profile and increased scale.
- Identify which contracts and supplier relationships to retain in each relevant spend category.
- Draw up a blueprint long-term integration that will optimize Procurement’s approach to talent, processes, technologies, and more.
Is a merger or acquisition on the horizon for your company? It could provide an ideal opportunity for Procurement to earn executive buy-in and enhance its image. Stakeholders are more open to change, suppliers are eager to increase sales volumes, and shareholders are willing to accept early investments. What are you waiting for? Reach out to Source One today to start building a merger-ready Procurement function.
Contact the Pre-M&A Procurement Support Team