With rising IT complexity and challenges, CFOs are looking to smaller players and upstart vendors as key to their business strategies. Meanwhile, business leaders across virtually every industry are increasingly pointing to M&A as a major component of their company growth strategies. Considering how the inevitability of M&A events may affect organizations, executives must anticipate and plan how their IT strategies will affect acquired or acquiring companies. Risk and compliance challenges can present unforeseen costs during an M&A event, particularly as companies work to combine complicated infrastructure. One of the key ways finance leaders can avoid this risk is by partnering with IT leaders to move beyond traditional enterprise resource planning (ERP) systems to a cloud-based, predictive insights-focused platform like Dynamics 365.
Embracing Forces of Disruption
As businesses merge, the process requires correct management across stakeholders, technology platforms, and partners to avoid high costs and potential failure. Enterprise networks consist of more software, cloud, and professional service vendors to manage and work with. Further, with globally distributed workforces and more complex cloud, M&A activity only adds to the complex issues to deal with. However, with new ways to scale your business, business leaders can improve processes and relationships with suppliers and vendors, and even identify new markets and growth opportunities. With sufficient visibility into what matters across networks, applications, and the overall data ecosystem, leaders can use knowledge of their company and networks to drive sustainable growth.
Top Reasons M&A Deals Fail:
- Lacking a good motive for the acquisition
- Targeting the wrong company
- Overestimating synergies
- External risks
- Losing the trust of important stakeholders
- Inadequate due diligence
- Failed Integration
Managing Compliance and Risk
In addition to having visibility and aligning your assets to market opportunities, CFOs can invest their IT budget into solutions that offer predictability around risk—ultimately creating a competitive advantage. Further, organizations can decrease legal and other enterprise risks that come with a demanding regulatory environment. IT posture often determines the success or failure of the CFO role during M&A events; it is crucial to understanding how to merge the complicated infrastructure of the company’s networks of many devices, servers, and resources. With D365’s cloud based automation, CFOs can aim to deliver consistent and actionable risk and compliance insights while maintaining an optimistic vision for merging networks to drive growth.
If you are interested in learning more about managing M&A compliance and risk as well as maximizing the use of Microsoft Dynamics 365 for Finance and Supply Chain Management contact us here to find out how we can help you grow your business. You can also email us at [email protected] or call (312) 345-8817.