Quick Integration of Data and Compliance
One of the biggest jobs during an acquisition is integrating data from the company you’re acquiring, including its finance, human resources, payroll, and other operational information. Delivering Differentiated Returns in M&A Getting access to data, ensuring its integrity, and mapping it into your own data structure can be a significant challenge, particularly when the two organizations have different systems and or different business models. If legacy on-premise systems are involved, integrations can take a long time, often years, because those systems and their data structures can be quite rigid and don’t necessarily reflect the way their business current operates. In addition, from a regulatory standpoint, it’s often not possible to access data from the acquired company until the transaction closes, limiting the ability to start integration efforts early.
Thousands of companies initiate merger and acquisition M&A deals each year despite the overwhelming odds of failure. A significant majority of M&A deals fall short of their initially stated goals. Yet strategic advisors continue to encourage M&A transactions, and year after year organizations pin their hopes and company valuations on the slim chance of achieving a successful transformation. With billions of dollars, countless workforce hours, and innumerable other resources at stake, an acquisition needs to deliver a high return to be worth the effort and expense. And although industry folklore abounds as to the ingredients needed for a successful M&A deal, there is little in the way of an established, surefire approach.
Having the Right Data at the Right Time
We use our own Workday Prism Analytics to pull data from Workday, as well as third-party investment software, to create a daily treasury dashboard that shows us how much liquidity we have globally, by currency and by investment maturity. We can also see how much can be liquidated and deployed, and at what cost. The ability to deploy cash efficiently and make decisions faster and with more confidence are crucial when you are bringing another company on board for Delivering Differentiated Returns in (M&A).
M&A deals represent a material risk with a variable reward. Delivering Differentiated Returns in M&A They can supercharge a company’s market and offerings, or they may create a bottomless pit for money and resources. As with any opaque and challenging process, initiating an M&A deal tends to create significant anxiety among key stakeholders. If executives overseeing a merger or acquisition don’t know what to expect from the process, who they need to bring in to strengthen core teams and skillsets, where to invest to shore up preexisting weaknesses, or how to integrate disparate components into one cohesive unit, they are unlikely to achieve a worthwhile result. Even if a company has all the right ingredients in place, the recipe for a successful M&A deal can feel impossible to manage.
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Delivering Differentiated Returns in M&A: Is There a Secret Formula?