Technology M&A. Chance für das Geschäftsmodell oder Kostenlawine? [Chance for the business model or cost explosion?]

Transcription

1 Technology M&A Chance für das Geschäftsmodell oder Kostenlawine? [Chance for the business model or cost explosion?] Deal Advisory Strategy 9. Mai 2018

2 The importance of IT in Integration IT-dependent synergies contribute 30-60% of a merger s benefit* Best-in-class companies successfully integrate acquisitions in 12 to 18 months 40-50% one-off costs in a transaction are usually IT costs* Apart from preserving value through more effective Integrations, many experienced acquirers create additional value and reduce risk by involving IT much earlier in the process - often at the very beginning* Acquiring firms with high levels of IT Integration capabilities results in significantly higher performance within the merged firm in both the short and long terms* 20% of respondents recognized IT as one of the most challenging areas to deal with post transaction despite the significant potential for lost value* *Source: KPMG Analysis, Protiviti, Big four knowledge, Bain, Capgemini, ISACA. 2

3 M&A trend: IT as chance for business models Classic IT Integration Chances for Digital Business Models Internet of things Automation Big Data Digitalization IT influence on synergies is often being neglected and hence synergy targets are not met! IT creating new opportunities for digital business models 3

4 Leverage automation and customer data! IT Areas Classic IT Integration Chances for Digital Business Models ERP Applications Non-ERP Applications IT Infrastructure IT is required for deal synergies ERP system consolidation is costly and takes time IT follows business Consolidate redundant IT applications Leverage economies of scale through standardization of network/ data centers/ hardware/ clients Enable data driven customer analysis Cross-selling potentials new markets/ countries/ products Automate processes Leverage IT know how for developing business capabilities Leverage IT Know-how Block about chain robotics, technology process automation, cloud Enabler for applications IT Organisation (licenses/ contracts) One centralized IT Organization Economies of scale for licenses/ contracts Leverage programming and other IT capabilities for product IT development Employee empowerment What advantages offer digital business models in your deal? 4

5 Key takeaways Technology M&A 1 Leverage the possibility of an IT Due Diligence! Gather holistic information at an early point in time Plan low-hanging fruits"/ synergies, and realize them quicker 2 Start IT integration early! IT is always on a critical path due to time/ resource scarcity Professional project management supports early synergy realisation 3 Look out for advantages of digital business models! Discover hidden potentials/ risks for purchase price negotiation Develop a technology roadmap to chose best-of-breed technologies 5

6 Yourcontact Florian Schneider Senior Manager Florian is responsible for all IT/Technology aspects around deals. In his 12 years of work experience he has led and supported the IT in about 40 transactions for e.g. Bosch, Linde as well as mid sized companies. Prior to joining KPMG he worked in various positions within the IT department of Nokia Siemens Networks. Mail: Mobile:

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