Last year was a good one for mergers and acquisitions (M&A). In fact, the value of global M&A rose almost 23% in 2010, with emerging markets leading the way and the energy and power sector seeing the most activity.

M&A is a burning issue no matter what your industry sector, and I hear about these challenges and questions every day in talks with business and supply chain leaders.

How much due diligence is enough? What if this new deal weakens our existing operations? How do we go about integrating supply chains? How can we show stakeholders the real value of the combined businesses? These questions and more are addressed in the Top 11 Priorities in 2011 for M&A.

Most executives understand that a good due diligence process is crucial to M&A, but I don’t believe that the impact of supply chain analysis and integration is well understood. Due diligence is not just about “financial engineering” – it is also about uncovering operational values early in the process.

Supply chain due diligence, done right, can reveal:

• Opportunities for supply chain improvements, simplification and cost reductions (sourcing, inventory, transportation, operations);
• Avenues for increased supply chain visibility, agility, velocity and responsiveness;
• Ways to meet challenges from supply chain risks and constraints to future growth; and
• Opportunities for network rationalization, organizational refinement, supply chain IT and Asian sourcing
  

I predict that we will see more companies looking to the supply chain during M&A due diligence and organizational integration in 2011 as a way to secure profitable growth.

Go!Go!Go!

Jim

P.S. If you are interested in Top 11 Priorities for business sectors such as pharmaceutical and consumer products, you can see more here.


More resources

M&A Strategy

Whitepaper, Integrating Supply Chains from Business Combinations