Insight

M&A and the role of procurement

Words: Simon Whatson

In our three-part series on procurement’s role in a merger or acquisition, we’ve looked at estimating synergies before and during the deal, as well as how to achieve immediate and longer-term synergy savings after a merger has taken place.

We’ve also examined how early engagement with procurement teams can help smooth the post-merger transition.

What’s been clear throughout, is that for procurement teams to be a success in M&A, involvement from start to finish is vital.

There from the beginning

For Gregory Smith, Head of Sourcing Vendor Solution at Swiss Re, the key to successful post-M&A procurement is being involved early on.

We have a role to play in the whole deal lifecycle. The earlier we’re involved, the more we can look at the potential synergies.

Gregory Smith, Head of Sourcing Vendor Solution, Swiss Re

Early involvement has helped his team to recognise savings up to six months earlier than on other deals, he points out. This was achieved by “…having a good view of the contracts, and reconciling them at the due diligence phase”.

At Swiss Re, the procurement team has made efforts to promote its expertise in helping to deliver the expected benefits following deals.

“We’ve tried to ensure we’re part of the deal team, and not just brought in on an ad hoc basis,” Smith says. “It’s vital we understand the different touchpoints of the business.

“Being part of the due diligence team from the early stages removes some of the challenges of coming at it from outside.”

To find out more, please contact Simon Whatson using the contact details below.