Consumer OnDemand – transact to transform: strategic M&A for retail growth

How transactions, tax strategy and technology are accelerating growth in retail

In this retail-focused Consumer OnDemand video, EY Retail leaders explore how retailers are turning to strategic transactions to accelerate profitable growth. This video explores real world insights into how the retail deal market is rapidly evolving through disruption.

In today’s retail market, these deals are no longer traditional acquisitions. Today’s deal strategies are targeted, tech-enabled and designed for capability to accelerate growth.

These ambitious transformations require informed strategy — and precise execution across the operating model. To shine a light on both the evolving retail transaction strategies and complex activations, we gathered EY leaders with knowledge of mergers and acquisitions (M&A), tax, and technology to help navigate today’s complex retail landscape.

Moderator

Mark Chambers
EY Americas Retail Sector Leader

Panelists

Will Auchincloss
EY-Parthenon Americas Retail Sector Leader

Photographic portrait of Adrienne J. Figur

Adrienne J. Figur
EY Americas Tax and Finance Operate and Global Operations Leader

Photographic portrait of Sri Prabhakaran

Sri Prabhakaran
Americas EY-Parthenon Deal Technology Leader

Topics discussed include:

Adapting deal strategies to align with today’s market shifts
The dynamic challenges retailers face in scale and scope transactions
Tax planning’s role as a strategic tool to maximize deal value
How technology plays a crucial role in realizing the full value of a deal

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What makes a retailer competitive
today is fundamentally changing.

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It’s no longer
just about scale, assortment or price.

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It’s about precision and agility.

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In today’s dynamic environment,
remaining competitive demands evolution.

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Retailers need to adapt quickly
and find new ways to reinvigorate growth.

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For many, that journey increasingly
requires leveraging strategic transactions

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as a profitable growth enabler

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from scale plays

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to capability-building acquisitions
to reimagining how and where they compete.

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Today’s deal strategies are more varied,
more targeted

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and more tech-enabled than ever before.

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But for all the focus
on making the right move,

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the real opportunity lies
beyond the transaction itself.

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That takes not just a smart strategy,

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but the ability to execute with precision
across the operating model.

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The way retailers integrate,
align and activate can be the difference

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between simply buying a company
and building a better one.

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Today, we’ll explore

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how retail organizations
are doing exactly that,

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using strategic transactions,

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tax planning and technology
to turn deals into engines

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for profitable growth.

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I’m Mark Chambers,
EY Americas Retail Leader

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and today I’m joined by Adrienne Figur,
EY Americas Retail Tax Leader.

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Will Auchincloss, EY Americas
Retail Strategy and Transactions Leader

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and Sri Prabhakaran,
EY Americas Deal Technology Leader.

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So Will, I will address
the first question to you.

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What are some of the primary drivers
behind the transactions

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in the retail sector
that we’re seeing today?

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Yeah, Mark,
I think if you really boil it down,

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retailers are really responding
to their environment. Right?

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So they’re faced with

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ever-changing
consumer preferences,

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the rise of digital entrants,
new macroeconomic shifts and

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new regulatory shifts that
they have to contend

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with on a day-in
and day-out basis.

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And they see M&A
as a really powerful lever

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to help accelerate their growth
through that environment.

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And really, when you analyze
the types of transactions are doing,

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it comes down to two broad types.

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So one is what we would call

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deals of economies of scale,
where they try increase their

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reach and range
and build a lower cost profile

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through getting larger
and expand their store footprint.

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And those have actually been
the largest deal types

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in terms of the share of dollars that
you see over the last couple of years.

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I think more significant is

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what we call economies of scope,
where retailers are adding

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new capabilities,
particularly in the digital realm,

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like AI and personalization, adding
DTC channels, new media capabilities

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and new brands and products
that go to market with

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and we call those economies of scope
and actually,

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there’s a really good example
recently where we’re

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helping a client that’s
an American-based apparel company

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that bought a European-based, a little bit
higher-end, a little bit more outdoorsy

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brand to really expand their offering
to take their core customers,

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but also give them a new capability
in a major geographic region

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where they don’t plan today,
which is Europe.

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They don’t plan it very well.
So they’re using that management team.

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Those systems, those tools,
those reach in Europe

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to really build out that capability
over there as well.

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So that’s a good example of sort
of those economies of scope that we see.

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Another example that we often see
is complementary breadth.

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So what is it that a company or a retailer
might need to complement

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its current offering.

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And I oftentimes
think about a significant online retailer

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who was looking to get more
and more into the grocery space.

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So they looked at opportunities
for acquisition on where they can acquire

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that sort of supply chain and also get
the physical assets that were needed.

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So they ultimately bought a US grocer
and got access to the supply chain,

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the distribution centers

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and the physical footprint of all
of the physical stores that were out there.

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They were able to take advantage
of that product offering

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and likewise offer that
to their online retail presence.

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What they also took was their technology
and e-commerce capability

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and shared that then with the grocer.

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So it was a win-win situation there where
economies of breadth also come into play.

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Great point Adrienne and Will,
thank you very much.

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Will, I’m going to come back to you again.

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Building these M&A capabilities
can be complex.

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What are some of the challenges
that retailers face

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and how can they overcome them?

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Yeah, I mean, Mark,
if you look at the literature

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and our own research on transactions
in general, most of them

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don’t perform or drive
outstanding shareholder returns.

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But when you peel that data back
a little more closely, you see that

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there are patterns of what makes good
in a retailer transaction environment.

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And that really comes down
to repeatability.

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And building that muscle memory,
we call it,

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where they are out in the market,
they’re being active and doing diligences

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and talking to potential players

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and potential acquirers
and they’re active in the deal market.

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And so that’s sort of a capability lens.

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When you think about it
from a strategy lens,

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it really starts as having a clear
enterprise strategy and linking your M&A

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strategy to that enterprise strategy
in a very firm way

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and then taking a clear-eyed view
of how you’re going to drive this.

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I think the other key thing

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is really getting ready
for day one readiness.

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And we’ll talk a little more

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how that is no longer sufficient, but it’s
completely necessary for retailers

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to be laser-focused on closing these deals
in an appropriate timeframe

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and executing them
flawlessly out of the gate

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because the pressure for shareholder
value is so high these days.

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Thank you, Will. You’re right.

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It is extremely high these days.

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Those expectations are off the charts.

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Adrienne, I’ll maybe turn to you.

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As retailers look to enter
into these types of transactions,

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how can tax be viewed
not just as a compliance exercise,

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but as a way to drive strategic value
throughout the transaction process?

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Tax should always be at the table
as a critical lever for companies

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to be thinking about as they’re driving
value in association with the transaction.

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And when I think about this,
I think about several different areas.

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First off, a retailer should be thinking
about what attributes does it have

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that would otherwise go unused,
but for a particular transaction?

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And on the flip side,
the company that’s being acquired,

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what attributes do they have

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that can be absorbed by the retailer
to enhance the overall posture?

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Second, I think about, supply chain.

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What supply chain can an acquirer
avail themselves of through an acquisition

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that will help them mitigate
geopolitical risks or tariff exposure

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and ultimately lead them to a more

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nimble supply chain given
the uncertainties in the environment.

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I also think about what processes
can be centralized into either

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a single entity
or domiciled in a particular jurisdiction

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that will enable the company to
then save not just on SG&A costs

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by having a centralized function,
let’s say a purchasing function,

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but also allow them to reduce
the indirect tax impact,

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which just flows
directly to the bottom line.

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And then I think about

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credits and incentives
and what can this new organization avail

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themselves of from a credits
and incentives perspective

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that perhaps
they weren’t able to previously.

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And that can be
for new physical locations, that can be

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for headcount accretion, that can also be
for things such as solar energy panels

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and other environmental
and social credits that are out there.

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So very important for the companies
to think about what is their new being

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and how can they continue
to monetize that.

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But I also think it’s important
that we think about transact to transform.

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Divestitures are also a way for a company
to accrete growth to the organization.

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So by selling an underperforming asset,
a company may in fact incur a loss.

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But as I said before, leverage attributes
that may otherwise go unused.

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So when I think about this,
I think about a global retailer

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who shed an underperforming
asset in the UK.

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And what did that allow them to do?

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It allowed them to leverage
those losses against income

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to lower their overall tax posture,
but it also allowed them

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to take the proceeds from that divestiture
and reinvest it back into the business.

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So they were able to provide
additional technology enhancements

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and e-commerce to their
current customer base.

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Will, do you have anything to add to that?

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Yeah, Adrienne, it’s a great point
about unlocking value through separation.

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So we tend to think about it
in a couple dimensions.

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I think one is and as you noted,
there’s the actual RemainCo,

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if you will, that tends to value
from separated non-core asset.

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Right? And that’s
because they receive cash obviously

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and then they unlock the ability
to invest in new things.

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They may have struggled
with that asset over the years

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and it just makes sense to their investors
to kind of exit from that business.

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I think the second thing is it creates
a lot of value potential for that

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separated business,
if you will, the SpinCo or carve out Co,

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depending on the structure.

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And now they have access to new capital
and they have access to new parents

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that can invest in them

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and really unlock them and allow them
to transform their own business.

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I think the other thing we’re seeing,
which is really interesting, is just

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in the context of executing mergers as well
and the separations required there.

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So, this is more of a US phenomena
because we are pretty concentrated now.

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But often retailers now

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are having to decide what to acquire
from a store footprint perspective

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and then also exiting or separating store
units to kind of clear antitrust hurdles.

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And so that dynamicism and building that
perimeter is a really key strategic step

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that maybe 5 or 10 years ago they haven’t
had to decide, but now they really do.

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And so that’s really making them
sharpen their pencils

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on how they’re going to get value
out of these transactions in an M&A

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context, but also doing separations
at the same time.

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Yeah. Thank you both very much for those
not only touching on the divestitures,

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which I think is a great point,

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but the idea that you raised
early, Adrienne, around

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having tax at the table early
makes all the difference in the world.

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And I think a lot of times
you and I would both acknowledge

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they might be the last to know
in many cases and that’s a mess.

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So thank you for that.

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Technology
integration plays a critical role

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as you think about realizing the value
for a transaction,

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what outcomes should companies
really be thinking about

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when it comes to addressing the technology
aspects of this transaction?

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Technology has always been
the big elephant in the room.

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From a statistic perspective,
50% of the synergies

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and 50% of one-time cost
can be attributed to technology.

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But when you look at the latest
EY CIO survey, only 28% of the CIOs

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think IT is able to generate the value
that it’s supposed to generate.

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A big disconnect. What is happening?

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If you step back a little, five years back,
there might be one transaction a year.

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A retailer might probably do
two transactions a year.

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But today, with the advent of technology
and the geographic expansion,

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so many different factors, there are
so many transactions happening every year.

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Different types of assets,
different types of transactions,

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technology is not able to keep up with it.

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So if I was a technology leader,
I would do two things.

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First, preparation.

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From a prep perspective,
make sure your

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technology is ready
for the flurry of transactions.

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This can be anything from creating
landing zones for your technology,

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having a lot of cloud hosting
so you can bring the technology assets in.

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Second, start thinking of playbooks
from a prep perspective,

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because most of this work can become
a methodology and can become a playbook.

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Create the playbooks.

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Simple things, right?

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Contracts.

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There are these big technology vendors.

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When a transaction happens,
you pay a lot of one-time cost.

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Why don’t you make sure
that your contracts

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have the language needed
for you to manage this?

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So that’s from a prep perspective.

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When it comes to execution,
this is where the value falls apart.

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Tech leaders always think about
integrating the back-end technology.

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Trust me, that’s super important today.

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But the most important thing is how do you
bring business along the journey?

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Are you a business enabler
or just a tech integrator?

222
00:11:56.382 --> 00:11:57.750
A few things to keep in mind.

223
00:11:57.750 --> 00:11:59.385
First, data.

224
00:11:59.385 --> 00:12:01.520
Data is super important
in a retail context

225
00:12:01.620 --> 00:12:03.055
because you see consumer data,

226
00:12:03.055 --> 00:12:06.692
PI data, a lot of household data
coming through retail transactions.

227
00:12:07.093 --> 00:12:09.995
If I was a technology leader,
I would start thinking of data

228
00:12:09.995 --> 00:12:14.400
from day one, from integrating the data
to monetizing the data.

229
00:12:15.134 --> 00:12:18.037
Second, the customer experience.

230
00:12:18.037 --> 00:12:19.405
There is so much opportunity

231
00:12:19.405 --> 00:12:22.608
when two retailers come together
to enhance the customer experience.

232
00:12:23.476 --> 00:12:27.379
This can be anything from
your front-end POS or something

233
00:12:27.379 --> 00:12:29.048
from a supply chain integration.

234
00:12:29.048 --> 00:12:31.717
So much to do
if you start thinking of the consumer.

235
00:12:31.717 --> 00:12:33.219
The third important thing

236
00:12:33.219 --> 00:12:37.556
start thinking of the overall experience
that you give to all the stakeholders.

237
00:12:37.890 --> 00:12:40.893
It’s not just the consumers,
it’s your internal employees.

238
00:12:41.060 --> 00:12:44.463
When big retailers come together,
the employee experience suffers.

239
00:12:44.463 --> 00:12:46.799
So start thinking of employee experience.

240
00:12:46.799 --> 00:12:51.003
When you do all of this,
you stop being a back-end IT integrator.

241
00:12:51.003 --> 00:12:54.607
You start becoming
a front-end business strategist.

242
00:12:54.840 --> 00:12:56.075
You get a seat at the table.

243
00:12:56.075 --> 00:12:58.010
You start driving discussions.

244
00:12:58.010 --> 00:13:01.814
To me, this will enable the value
and will change the 28% statistic

245
00:13:01.947 --> 00:13:03.349
to something different.

246
00:13:03.349 --> 00:13:05.251
Yeah. Thank you Sri.
That’s a great answer.

247
00:13:05.251 --> 00:13:07.653
As a matter of fact,
the point you made around

248
00:13:07.653 --> 00:13:10.322
experience I think is a very valuable one.

249
00:13:10.322 --> 00:13:13.292
Today’s age of consumer expectations

250
00:13:13.292 --> 00:13:17.797
around hyper-personalization
isn’t going away.

251
00:13:18.264 --> 00:13:22.234
And using this event to really hone
your skills around that

252
00:13:22.234 --> 00:13:24.703
could be a very valuable one,
so thank you for that.

253
00:13:25.437 --> 00:13:27.373
Will, I’m going to come back to you.

254
00:13:27.373 --> 00:13:31.343
Oftentimes, these large transactions
cause organizations

255
00:13:31.343 --> 00:13:34.647
to evaluate and redesign
their operating model at times.

256
00:13:35.281 --> 00:13:36.782
What should retailers specifically

257
00:13:36.782 --> 00:13:39.752
be thinking about going into these deals
when it comes to their operating model?

258
00:13:40.152 --> 00:13:40.786
Yeah, Mark,

259
00:13:40.786 --> 00:13:43.022
we really think
the operating model is critical

260
00:13:43.022 --> 00:13:46.225
because it really is the architecture
of their strategy. Right?

261
00:13:46.225 --> 00:13:48.294
And if they don’t get that right,

262
00:13:48.294 --> 00:13:51.430
then it’s really hard for them
to achieve their strategy in simple terms.

263
00:13:51.430 --> 00:13:56.335
And so historically, clients have really
focused on getting ready for just day one.

264
00:13:56.335 --> 00:13:59.939
What do those integrations look like
and how do we get people on board quickly?

265
00:14:00.272 --> 00:14:03.742
But I think the really advanced
and better performing

266
00:14:03.742 --> 00:14:05.945
clients are really going to be
on sort of that

267
00:14:05.945 --> 00:14:09.481
first step of day one readiness
into what we call transact to transform

268
00:14:09.815 --> 00:14:14.019
and using these newly acquired assets
and capabilities to fundamentally reshape

269
00:14:14.320 --> 00:14:18.257
how they go to market, how they architect
their operating model and ingest

270
00:14:18.257 --> 00:14:22.795
those capabilities, because it’s
absolutely critical to focus on day one.

271
00:14:23.128 --> 00:14:26.765
But there’s often outside factors
that may make you compromise a little bit

272
00:14:26.765 --> 00:14:28.133
on your long-term objectives, right?

273
00:14:28.133 --> 00:14:30.069
So you have things like deal expediency.

274
00:14:30.069 --> 00:14:32.538
You have different maturity models
between the two firms.

275
00:14:32.538 --> 00:14:33.973
You have different cultures.

276
00:14:33.973 --> 00:14:36.942
You have transaction service agreements,
transition service agreements,

277
00:14:36.942 --> 00:14:40.246
excuse me, the transition to IT
stacks between the two firms.

278
00:14:40.246 --> 00:14:43.415
And so that can make it hard to reach
your full potential in the near term.

279
00:14:43.415 --> 00:14:47.019
But the really, smart and superior
performing retailers are pushing

280
00:14:47.019 --> 00:14:51.357
beyond that over the next 18, 24,
36 months to lift their operating models

281
00:14:51.357 --> 00:14:52.424
up to a new level

282
00:14:52.424 --> 00:14:54.927
and really get the value
out of their acquisitions

283
00:14:54.927 --> 00:14:57.897
in a new more thoughtful way
than I think they have been before.

284
00:14:58.931 --> 00:15:00.266
And, Mark, I’d add to that

285
00:15:00.266 --> 00:15:02.067
from a tax operating model
perspective,

286
00:15:02.067 --> 00:15:04.770
it’s critical that the company
start evaluating

287
00:15:04.770 --> 00:15:06.272
what its future operating model is

288
00:15:06.272 --> 00:15:10.276
early in the process and not wait
until the transaction actually closes.

289
00:15:10.576 --> 00:15:13.612
We’ve talked a lot
about the availability of tax benefits

290
00:15:13.612 --> 00:15:16.982
to help support
and drive value in a transaction

291
00:15:17.316 --> 00:15:20.152
and without the appropriate
operating model set up

292
00:15:20.152 --> 00:15:23.188
before day one, it’ll be very difficult
to actually realize those.

293
00:15:23.455 --> 00:15:25.291
So it’s important
for a company to think about

294
00:15:25.291 --> 00:15:27.326
what do they want to look like,
where do they want

295
00:15:27.326 --> 00:15:30.329
to be from a best-in-class
versus best-in-cost perspective?

296
00:15:30.429 --> 00:15:33.666
That is, do they want to have
an entirely internal tax function,

297
00:15:33.899 --> 00:15:36.936
planning, compliance
and relations to the business

298
00:15:37.169 --> 00:15:37.970
or would they like

299
00:15:37.970 --> 00:15:41.774
to have an outsourced model,
whether that’s outsourced to a third party

300
00:15:41.941 --> 00:15:44.944
or leveraging the company’s GBS
or shared services model

301
00:15:45.144 --> 00:15:48.147
or some kind of combination of those two.

302
00:15:48.280 --> 00:15:51.417
Second, it’s going to be important
for the organization to step back

303
00:15:51.417 --> 00:15:54.820
and understand what does
the newly formed retailer look like?

304
00:15:54.987 --> 00:15:56.422
What do their attributes look like?

305
00:15:56.422 --> 00:15:58.123
What are their methods of accounting?

306
00:15:58.123 --> 00:16:02.161
What are their transfer pricing policies
and are there ways to morph

307
00:16:02.161 --> 00:16:05.831
those to be more advantageous
to the overall organization?

308
00:16:06.498 --> 00:16:08.934
Then I’d also step back
and suggest that it’s important

309
00:16:08.934 --> 00:16:12.571
for that new tax operating model
to be very connected to the business.

310
00:16:12.871 --> 00:16:16.375
As the business goes through
the integration, truly from how it operates,

311
00:16:16.608 --> 00:16:20.479
whether it’s reducing footprint,
adding scale, adding new supply chains

312
00:16:21.013 --> 00:16:24.650
across the globe, it’s very important
for DAX to be a part of that to ensure

313
00:16:24.650 --> 00:16:25.851
that we’re reaping the benefits

314
00:16:25.851 --> 00:16:29.555
or the retailer is reaping the benefits,
if you will, of reduced taxes

315
00:16:30.689 --> 00:16:34.326
for reduced footprint,
but also maximizing opportunities

316
00:16:34.326 --> 00:16:36.362
overseas with intercompany
agreements and whatnot.

317
00:16:36.362 --> 00:16:39.631
So having those types of things
set up from an operating model perspective

318
00:16:39.932 --> 00:16:43.102
early on will be critical
to ensure the success of the organization.

319
00:16:43.535 --> 00:16:44.670
That’s a great point Adrienne.

320
00:16:44.670 --> 00:16:48.040
Mark, on this topic, when you think of
technology operating model,

321
00:16:48.207 --> 00:16:52.311
the one thing people forget is the talent
that you get out of these transactions.

322
00:16:52.578 --> 00:16:55.581
When you look at it
like ten years back or five years back,

323
00:16:55.647 --> 00:16:56.882
when you look at the talent,

324
00:16:56.882 --> 00:16:58.283
it’s more like information technology,

325
00:16:58.283 --> 00:17:00.786
IT talent that you get
as part of these transactions.

326
00:17:00.786 --> 00:17:03.722
But today, with the advent of
data and analytics,

327
00:17:03.722 --> 00:17:07.059
artificial intelligence
and all the engineering work that happens,

328
00:17:07.259 --> 00:17:11.563
you get some very good talent
from, say, Bay area or hubs like Austin.

329
00:17:11.830 --> 00:17:15.901
So technology leaders should start
thinking of people strategies,

330
00:17:16.201 --> 00:17:20.139
cultural alignment,
incentives to retain this talent

331
00:17:20.305 --> 00:17:23.409
because this talent is real
top talent that other retailers

332
00:17:23.409 --> 00:17:26.979
would also want to recruit
and they know a transaction

333
00:17:26.979 --> 00:17:30.649
is a trigger where potentially
some of this talent might be unhappy.

334
00:17:30.649 --> 00:17:33.218
So, this is a good point
for them to go hire this talent.

335
00:17:33.218 --> 00:17:36.722
So, technology leaders
should start thinking of talent retention

336
00:17:36.722 --> 00:17:39.925
and culture alignment strategies
when they think of operating model.

337
00:17:40.726 --> 00:17:41.994
Thank you all for that.

338
00:17:41.994 --> 00:17:44.997
When it comes to operating model,
there’s obviously a lot to consider,

339
00:17:45.097 --> 00:17:47.699
whether that be operating model design,

340
00:17:47.699 --> 00:17:51.036
tax strategies, talent strategies,
as each of you touched on it.

341
00:17:51.437 --> 00:17:54.440
Speaking of a lot to consider,
let’s shift back to growth.

342
00:17:54.706 --> 00:17:57.176
I’d love to get each your perspectives
on what it is

343
00:17:57.176 --> 00:18:01.013
that you’re advising your clients
for over the next 12 to 24 months

344
00:18:02.247 --> 00:18:03.749
as to how these retailers

345
00:18:03.749 --> 00:18:07.252
should be evaluating the M&A market
and what their strategy should be.

346
00:18:07.252 --> 00:18:09.021
Will, I’ll start with you.

347
00:18:09.021 --> 00:18:12.391
Yeah, Mark, I like to tell clients right now
it’s the Boy Scout motto of be prepared.

348
00:18:12.858 --> 00:18:14.593
There’s certainly interesting times
right now and there’s

349
00:18:14.593 --> 00:18:18.397
a lot of macroeconomic volatility
that they’re going to have to navigate.

350
00:18:18.397 --> 00:18:21.300
But back to that thesis
about having muscle memory

351
00:18:21.300 --> 00:18:23.168
and being active in the market,

352
00:18:23.168 --> 00:18:24.903
these are skills
you want to have over the deal

353
00:18:24.903 --> 00:18:27.906
lifecycle or the market lifecycle,
regardless of what’s happening?

354
00:18:28.440 --> 00:18:31.710
So, you know, obviously,
have a clear strategy

355
00:18:31.710 --> 00:18:35.013
for how to navigate this, build scenarios
to kind of anticipate things.

356
00:18:35.013 --> 00:18:37.449
But at the end of the day,
you still want to be active,

357
00:18:37.449 --> 00:18:40.452
you still want to be talking to firms,
you still want to be out there

358
00:18:40.452 --> 00:18:43.689
actively pursuing diligences
that make sense just because you

359
00:18:43.689 --> 00:18:44.990
don’t know what’s going to happen.

360
00:18:44.990 --> 00:18:48.160
And in some ways,
this M&A lens could actually help

361
00:18:48.160 --> 00:18:50.028
you navigate some of
the turbulent times we’re in.

362
00:18:50.028 --> 00:18:54.633
So, you know, we have to be cautious,
but we also have to be adventuresome

363
00:18:54.633 --> 00:18:56.702
and explore a little bit
and make sure that we’re

364
00:18:56.702 --> 00:18:58.637
kind of trying
to drive through this as best we can.

365
00:19:00.239 --> 00:19:02.641
I would add to that, Mark,
expect the unexpected

366
00:19:02.641 --> 00:19:04.409
and be able to be agile and nimble.

367
00:19:04.643 --> 00:19:07.713
And in order to do that, it’s important
that tax departments

368
00:19:08.180 --> 00:19:10.516
focus on scenario planning and modeling.

369
00:19:10.516 --> 00:19:14.319
The global landscape is ever-changing,
both from a regulatory

370
00:19:14.319 --> 00:19:18.190
and legislative perspective and being able
to stay on top of those changes

371
00:19:18.190 --> 00:19:20.993
is very important
and build that into your scenario modeling

372
00:19:20.993 --> 00:19:24.062
and your scenario planning
so that when a transaction does come up,

373
00:19:24.062 --> 00:19:27.032
the tax department is ready to offer
what those value drivers could be.

374
00:19:27.933 --> 00:19:30.202
From a technology perspective, Mark,

375
00:19:30.202 --> 00:19:34.139
we tell our clients either
embrace this disruption or get disrupted.

376
00:19:34.773 --> 00:19:38.177
Like you need to start thinking
of technology as a business enabler

377
00:19:38.377 --> 00:19:41.346
and start thinking of
how you can get the technology

378
00:19:41.346 --> 00:19:44.349
integrated and transformed
at a lower price point.

379
00:19:44.583 --> 00:19:47.619
For example, one of the retailers,
we are working on a large integration,

380
00:19:47.853 --> 00:19:50.189
they have multiple systems
that need to be integrated.

381
00:19:50.189 --> 00:19:53.759
So, we are asking them to be creative
to start applying technologies like

382
00:19:53.892 --> 00:19:55.994
agentic AI, so you don’t have to spend

383
00:19:55.994 --> 00:19:58.997
hundreds of millions of dollars
to integrate your backend systems.

384
00:19:59.131 --> 00:20:03.135
So if they don’t embrace this disruption,
there’s a chance they will be disrupted.

385
00:20:03.302 --> 00:20:07.606
So, you need to start thinking ahead
of the S-curve so you don’t get disrupted.

386
00:20:08.507 --> 00:20:09.708
Yeah, you all make great points.

387
00:20:09.708 --> 00:20:12.211
I mean it is a dynamic environment,
let’s face it.

388
00:20:12.211 --> 00:20:13.745
But if I take away everything,

389
00:20:13.745 --> 00:20:16.815
if I put a summation on what it is
that you just shared, be prepared,

390
00:20:17.583 --> 00:20:22.821
be agile and be open to opportunities
that can help transform your organization

391
00:20:22.821 --> 00:20:25.857
as you think about growth,
not only now, but into the future.

392
00:20:26.658 --> 00:20:29.595
Thank you Will,
Adrienne and Sri for joining us today.

393
00:20:30.562 --> 00:20:30.963
Thanks for

394
00:20:30.963 --> 00:20:33.966
joining us for this retail-specific
Consumer OnDemand.

395
00:20:34.099 --> 00:20:37.603
We hope you continue the conversation
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Consumer OnDemand – transact to transform: strategic M&A for retail growth

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