Two good adjectives for the current state of the global business landscape are “challenging” and “volatile.” This environment typically sets the stage for an uptick in consolidations and merger activities. In 2015 alone, global M&A activity touched $4.9 trillion USD, beating the record of $4.6 trillion set in 2007, according to statistics from Dealogic. We can safely say that having the experience and knowledge to successfully navigate and implement the enterprise-wide goals of a corporate consolidation has never been more important.
When one company acquires another, a formal sourcing engagement can help drive synergy savings between the two companies. There are four core components to ensure these synergies are actualized from an acquisition: communication; execution; senior leadership engagement; and finally, support and change management. Each of these has its own set of complexities that need to be evaluated to achieve the synergies’ full potential and drive success for the new organization.