Mergers and acquisitions can create immediate value opportunities, improve your competitive position, and provide a solid foundation for growth.
ScottMadden has assisted companies in assessing potential merger opportunities. This due diligence work has included the determination of possible merger synergies, competitive strategic assessments of peer companies, regulatory and political implications, and potential financial effects.
Our team also has extensive industry knowledge and deep experience assisting clients in the integration of merged/acquired operations. In our Energy practice, we have supported integration of nuclear operations, fossil operations, wholesale trading, energy delivery, and retail to name but a few. We are the only consulting firm with experience planning market mitigation in response to a Department of Justice order.
Within and outside of the energy industry, we are adept at integrating corporate support functions, including:
The integration of finance and accounting into mergers is an important aspect that ties in with other stages. The pre-merger phase, or due diligence process, typically includes detailed financial statements from both companies to assess their strengths as well as weaknesses before any decision making takes place. This ensures the accuracy of price per share based on actual data rather than just hopeful assumptions about future performance (which could lead you down an unprofitable path).
The HR department is often at the forefront of any company merger or acquisition. They need to make sure that all personnel are aware and prepared for what’s going on, while also navigating potential complications from employees who may not want changes in management style, benefits, payroll, or other upheavals.
Information technology also plays an integral role in mergers and acquisitions. It not only provides the infrastructure for these deals, but also aids with transaction processing throughout each stage of a company’s lifecycle. IT provides access to data that can be used as evidence or collateral against any potential threats faced during integration periods.
The acquisition of another company is not just an economic decision, but it’s also one that impacts your business. The integration process can be challenging and time-consuming if you don’t have the right resources in place for this type of merger task. That may mean higher costs or less efficiency on both sides as well potential lost revenue because things weren’t done properly.
The key thing to remember about supply chains linked together through M&A deals is that they stay connected whether buying something new, merging two operations, or even acquiring another firm outright.
Our work includes shifting support functions to best-fit delivery models, selecting operating locations, aligning policies and processes, selecting and migrating to best-fit technologies and applications, and selecting and transitioning the best-skilled talent to the integrated operation. Many mergers are founded on synergies from back-office operations, and ScottMadden is highly experienced at working with our clients to realize these savings.
Sussex Economic Advisors is now part of ScottMadden. We invite you to learn more about our expanded firm. Please use the Contact Us form to request additional information.