
Use Case
Fast-track M&A integration
Inorganic growth through company acquisitions is a key component of many companies' growth strategies. The acquired entities must be integrated financially, technically, and culturally.
In addition, portfolio decisions must be made. A reliable and clearly defined data basis is essential to successfully complete the acquisition.
Challenges
44%
of companies plan to grow through acquisitions in the coming years
75%
of companies see standardization and harmonization as key factors in digital transformation
70%
of companies consider the use of a data warehouse to be crucial for their data strategy
"Fast-track M&A integration"
- Company acquisitions, the integration of acquired entities, and holistic management are increasingly important trends in the mid-sized business sector.
- The integration of acquired companies requires not only cultural alignment but also IT integration. It must be determined which systems should be standardized and to what extent, as well as which processes need to be harmonized. Interfaces must be defined, and legacy systems along with their data must be migrated.
- KPIs must be defined that enable consistent management based on the integration of operational and financial control parameters. Only in this way can meaningful reporting be ensured as a solid foundation for executive decision-making.
- M&A activities often lead directly to the need for optimizing the product and service portfolio. Carve-outs or the outsourcing of processes demand process-specific KPIs that are calculated according to clearly defined and deliberate criteria.
- Reporting should be based on a data warehouse that serves as a single point of truth and provides a standardized management cockpit—including, for example, product and customer profitability analyses.
Solution approach
- Design of a binding and comprehensive post-merger integration plan with clearly defined responsibilities and deadlines for the various areas of focus.
- Review, documentation, and analysis of the various IT systems currently in use, along with the development of a data warehouse including interfaces to the respective databases.
- Clear definition of the terms to be used and the processes to be applied in data collection, in line with standardization and harmonization objectives.
- Definition and mandatory use of a largely standardized chart of accounts to enable automated consolidation of financial data. This allows for group-wide and timely calculation of revenue, profit, and cash flow based on data stored in the data warehouse.
- Development of customer and product profitability analyses to support more informed portfolio decisions, product strategies, and potential (dis)investment decisions.