Supply chain in M&A integration and divestments
Whether it’s an M&A integration or a divestment and separation, an upcoming transaction provides a unique opportunity to transform your supply chain operating model.
What EY can do for you
Supply chain is a major M&A value driver for enabling topline growth, achieving operational synergies, preserving capital expenditures and improving cash flows. It also impacts almost every corporate function and internal and external stakeholders.
Our supply chain team, with its proven methodologies, M&A and industry experience, and leading tools and enablers, can help you realize short-term and long-term deal value while working to ensure business continuity and operational success on Day 1. Among the ways we can help:
- Review clean room data during due diligence to estimate synergy potential in the deal
- Help develop sign-to-close, post-close plans (30, 60, 180 days)
- Assist with structuring an overall supply chain integration strategy and two-year road map
- Support the capturing of cost synergies in acquisitions through external spend reduction, manufacturing and distribution network optimization and other levers
- Help design Day 1 and future-state operating models for the supply chain function
- Identify opportunities to outsource, insource and co-source for NewCo
- Reconfigure the supply chain network to align to NewCo business strategy
- Help develop a supply chain separation strategy based on deal perimeters
- Minimize cost dis-synergies and identify stranded and one-time costs for RemainCo
- Support the design of Day 1 and future-state operating models for the supply chain function
- Identify entanglements in assets and product/financial flows
- Identify requirements related to transition services agreements (TSAs)/transition manufacturing agreements (TMAs) with appropriate service levels; review any reverse-TMA requirements for products manufactured at shared locations
- Analyze and drive the disposition and/or conveyance of supplier contracts, assess loss of leverage and outline supplier negotiation strategies
- Develop detailed separation plans, roles and responsibilities and timelines
- Help improve overall margin through rapid value capture using a combination of levers such as operating model redesign, spending, manufacturing and distribution networks and working capital optimization
- Apply advanced operational analytics to identify high-potential opportunities
- Support the development of a supply chain transformation strategy and draft/execute 30-, 90-, 180-day plans
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