Picking the right order-to-cash integration approach

Evaluate both the acquiring company and the company to be acquired for selecting the right organizational structure Factors to Evaluate : Centralized Vs. Decentralized Model

• Number of business units of the acquired business
• IT Landscape : number of ERPs in place
• Industry type and customer base of the acquired company
• Difference in the way A/R activities are managed
• Cultural/geographical nuances and currency difference impact

Varying objectives across functions

Evaluate the existing processes to understand where the acquiring company stands on the below objectives Cost optimization Focusing on overall cost reduction while maximizing the business value. Train and talent acquisition The training programs for the A/R team. Process efficiency and standardization Process planning and developing standards for lowering the complexity. Future ready and scalability Preparedness to handle business growth† and maintain A/R efficiency and effectiveness while scaling up A thorough as-is assessment on these objectives could give the right direction to strategy formation Choosing the Strategy: Lift and Shift Vs. Lift, Transform and Shift If the acquiring company has all objectives aligned with the company being acquired, it will be easy for them to hit the ground running post M&A. Thus Lift and Shift is a good option for such situation. The Lift-Transform-Shift route is to get the two A/R teams aligned on a standardized process and have a common set of objectives. Training plays a key role in this phase, as the existing employees of the acquired company may have a fear of losing their jobs. Proper utilization of the resources can be achieved if the entire A/R team works for a common objective.

• KPIs to identify improvement scope & end state
• Redesign and document
• Add a layer of technology (automation)
• Change management
• Risk assessment & mitigation
• Knowledge transfer & training

Limited information to plan effectively

Here are some key questions that should be answered to get all the information you need to develop a strategic M&A plan IT Landscape

• Do you have the talent and expertise to handle the disparate IT landscape across multiple units
• Are the requirements of the small business units being neglected during shuffling?

Stakeholder Alignment

• Is there clarity within your team on what is expected from them?
• Have you built a relationship with the employees of the company being acquired?
• Are you well positioned to satisfy the demands of the customers of the new company?

Metrics

• Which one of your current systems needs to change and how?
• What is the estimated time frame within which you are expecting better profits?

Clarity in Vision

• Do you need a process specific strategy or a one-size-fits-all approach?
• What is your priority: to save the costs or to ensure a better control across your disparate units? Or is it something else?