Why Cloud Is Smart For Mergers And Acquisitions

2 min read

Robots playing chess on the cloud

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Mergers and acquisitions present a unique opportunity to implement digital change, and shifting to the cloud can greatly improve benefits.

Increasing the value of a company is often achieved through internal optimization or acquisitions of new assets.

Complementing existing business portfolios with new products or services and venturing into new regional markets requires time, effort, and comprehension of where the organization will position itself at the end of the transaction. Understanding the web or relationships linking the divested or acquired business to the ecosystem is the only way to evaluate and achieve synergies.

The larger an organization’s on-premises IT infrastructure, the more its reliance on price-based tactics, spreadsheet estimates, customizations, and internal justification in the event of failure.

No matter the size, organizations often fail to reap the fruits of their investment. Mainly this happens because buyers and sellers spend time wiring in and out assets ending in limbo with a limited strengthening of the vision.

Indeed, on-premise ERP systems have reduced the impact, giving visibility and providing standards on the internal way of managing resources. In addition, business content bricks of these solutions work decently if the scope of the M&A transaction is cost-driven. For value creation strategies, keeping or speeding up the control of the internal enterprise resources will not grant the agility and scalability required.

M&A transactions under value creation strategy focus on empowering the network of new potential collaborations.

The cloud transforms the M&A transaction into a change lab where new standards, new ways of cooperation, and novel approaches to innovation may be safely tested. This will enable the firm to be more agile in adjusting to change by adding value rather than opposing it by cutting costs.

After a few transactions, the organization will equip itself with a template that allows new assets to move like a container shifting from one firm to another and capitalizing on the value.

A faster execution will help as well to protect talents by granting them a more rapid reallocation in the new production environment.

Integration with suppliers, and partners, faster controls, laser focus on value creation activities, motivated personnel, and higher ecosystem standards. These features make Mergers and Acquisitions transactions linchpins for cloud strategies centered on value.

Takeaways

Increasing the value of a company is often achieved through internal optimization or acquisitions of new assets.

M&A transactions under value creation strategy focus on empowering the network of new potential collaborations.

The cloud allows M&A deals to safely test new standards, collaboration methods, and innovation strategies.

With the M&A in the cloud, companies respond to change by creating value rather than eliminating costs.

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Flavio Aliberti Flavio Aliberti brings with him a 22-year track record in consulting around business intelligence, change management, strategy, M&A transformation, IT and SOX auditing for high regulated domains, like Insurance, Airlines, Trade Associations, Automotive, and Pharma. He holds an MSc in Space Aeronautic Engineering from the University of Naples and an MSc in Advanced Information Technology and Business Management from the University of Wales.

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