What could go wrong in the absence of an OTC strategy?


An insightful summary on why order-to-cash is more than just a financial process and should be highly prioritized during a merger or acquisition

Contents

Chapter 01

Introduction

Chapter 02

What could go wrong in the absence of an OTC strategy?

Chapter 03

Major hurdles in planning a successful O2C strategy post M&A and their solutions

Chapter 04

Bonus section ? Best practices for smoother M&A transition

Chapter 05

About HighRadius
Chapter 02

What could go wrong in the absence of an OTC strategy?


  1. Inability to fulfill demands of the existing customers leading to dissatisfaction

    An unplanned order management system for the combined sale of product can raise complexities for the sales and shipping teams which degrade the customer experience.

  2. Insufficient time to familiarize oneself with the processes of the new company

    Time required to build an organized order-to-cash team post M&A requires a pre-planned strategy in place to guide the A/R team on the new policies and process changes.

  3. Acquiring company might lack the expertise to fulfill needs of the new industry

    Without a proper strategy for the A/R processes, the existing team of the acquiring company will not be able to handle the new functions because of lack of expertise in the new industry domain

  4. Loss in business due to lapse in understanding the demands of the industry type

    Different industries have varying conditions and A/R policies. So an acquiring company may not have the proper team to manage the A/R processes which will eventually result in loss of business.

Now that we realized the need of devising an order to cash strategy for M&A, the next step is to look into the challenges of integrating the order-to-cash process during an M&A and how to solve them.

3 Questions that act as the starting point for developing your O2C post M&A strategy

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HighRadius Integrated Receivables Software Platform is the world's only end-to-end accounts receivable software platform to lower DSO and bad-debt, automate cash posting, speed-up collections, and dispute resolution, and improve team productivity. It leverages RivanaTM Artificial Intelligence for Accounts Receivable to convert receivables faster and more effectively by using machine learning for accurate decision making across both credit and receivable processes and also enables suppliers to digitally connect with buyers via the radiusOneTM network, closing the loop from the supplier accounts receivable process to the buyer accounts payable process. Integrated Receivables have been divided into 6 distinct applications: Credit Software, EIPP Software, Cash Application Software, Deductions Software, Collections Software, and ERP Payment Gateway - covering the entire gamut of credit-to-cash.