Use Microsoft Dynamics 365 to meet M&A Challenges  

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With big tech now ubiquitous yet ever more complex, business leaders are eyeing smaller companies and startup vendors as key to their business strategies. As a result, organizations in virtually every industry are now considering mergers and acquisitions (M&A) an essential component of their company growth game plan.

M&A will affect not only the parent company but all those involved. Therefore, executives must anticipate and work out how their IT strategies will affect acquired or acquiring companies. In addition, risk and compliance challenges may entail unplanned costs during an M&A event as organizations contend with combining complicated infrastructures.

CFOs can avoid risk and mitigate challenges by partnering with IT leaders to move beyond traditional ERP (Enterprise Resource Planning) solutions to a cloud-based, predictive insights-focused platform such as  Microsoft Dynamics 365 

Meeting the challenges

In merging businesses, skillful management of all aspects, including technology and resources, will be required if you want to avoid cost overruns and the risk of failure.

Enterprise networks must manage more software, Cloud, and professional service vendors. And, with a globally distributed workforce and the complexities of the Cloud,  M&A activity only adds to the multiple issues with which parent and acquired companies must deal. However, with new ways to scale their organizations,  business leaders can improve processes and relationships with suppliers and vendors and even discover new markets and opportunities for growth. In addition, with sufficient visibility into their networks, applications, and the overall data ecosystem, executives can leverage the knowledge of their companies and networks to drive steady growth.

Why some M&A deals fail: 

  • Lack of a legitimate motive for the acquisition
  • Selecting an inappropriate company
  • Overestimating synergies
  • Overpaying
  • External challenges
  • Failing to maintain the trust of crucial stakeholders
  • Inadequate intelligence and preparation
  • Inability to integrate systems

Manage compliance and risk 

Complete visibility into all aspects of your organization and any you seek to acquire is requisite for M&A success. In addition, CFOs can invest their IT budget into solutions that help mitigate risk, ultimately gaining a competitive advantage. For example, with the insights provided by an integrated Dynamics 365 solution, organizations can decrease legal and other enterprise risks that come with a demanding regulatory environment.

IT performance often determines the success or failure of the CFO role during M&A events. Therefore IT is crucial to merging the complicated infrastructure of the company’s networks of devices, servers, and resources. With Dynamics365’s Cloud-based automation, CFOs will have consistent and actionable risk and compliance insights. These insights are invaluable for maintaining an optimistic vision while merging networks and managing ongoing growth.

What’s next

Would you like to learn more about managing M&A events, compliance and risk management, and maximizing the use of Microsoft Dynamics 365 for Finance and Supply Chain Management?

Contact our experts at Logan Consulting, and let’s talk about how we can help you grow your business.

By Logan Consulting, www.loganconsulting.com

 

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