SCALA launches guide to help navigate supply chains during M&A

The M&A market seems to be set to show a nook in 2024, with the variety of offers rising on final yr’s figures – however the information comes as provide chain disruption continues to complicate acquisitions. World provide chain and logistics consultancy SCALA has launched a complimentary good apply information to assist companies navigate the continued disruption, and profit from their offers within the coming yr.

Latest analysis means that sentiment on the planet’s turgid M&A market might lastly be beginning to flip. Based on WTW’s quarterly deals performance benchmark, world deal exercise elevated within the third quarter of 2023, with quantity rising by 16%. The information comes at a time when companies stay comparatively constructive about their prospects thanks partially to AI investments may enhance profitability – and additional papers have since urged that 2024 seems to be a lot brighter for deal prospects consequently.

That’s not to say that issues will return to regular, although. Offers in 2024 will nonetheless need to cope with lots of the headwinds which have hobbled the market all through 2023. Specifically, uncertainty nonetheless clouds the worldwide provide chain, with rising commerce tensions between the US and China, the battle in Ukraine, cyber-crime, and heightened prices nonetheless making the transport of products and companies tougher than all through the final decade.

Because it seems to be to assist corporations navigate this advanced setting, world provide chain and logistics consultancy SCALA has launched apply information on its web site. Obtainable without cost, the doc supplies trade insights to assist companies perceive the provision chain implications of endeavor M&A within the coming months.

Talking on the report, Phil Reuben, govt director at SCALA, mentioned, “In relation to M&A, there isn’t a “one measurement suits all” resolution; each provide chain comes with its personal challenges and alternatives distinctive to its sector and organisation, which means that each deal and course of can look completely different. It’s necessary to dedicate time to conducting cautious evaluation, making a bespoke provide chain and logistics technique, and making certain it’s applied efficiently, with the intention of making the very best return vs. price, threat, and enterprise change.”

Key concerns

Drawing on SCALA’s 22 years of provide chain and logistics experience, ‘Mergers & acquisitions: Securing methods for provide chain success’ compiles insights from SCALA’s specialists and trusted companions. It explores components that corporations ought to take into account earlier than they embark on a merger or acquisition journey; and after the deal is finished to make sure a easy and profitable transition. 

This contains questions which corporations ought to ask earlier than embarking on acquisitions referring to their goal’s present inventory. Are the present merchandise promoting? Will they proceed to be in demand? Is the inventory prone to promote sooner or later? In the meantime, when contemplating a merger, corporations ought to moreover take into account how two enterprise changing into one may influence warehousing and logistics; and the way and the place development might be maximised whereas the provision chain accommodates for enlargement.

Alongside SCALA’s knowledgeable group, Tom Rice, former head of provide chain at Olsam, an e-commerce platform that acquires and scales manufacturers to assist them obtain hypergrowth on Amazon and digital marketplaces; and Mark Duffy, manufacturing director at KP Snacks, additionally contributed in the direction of the information.

Rice added, “In relation to buying companies and their provide chains, there are various concerns to bear in mind, however the intention ought to at all times be to combine as effectively as doable. And the work doesn’t cease post-M&A; for instance, one of many main challenges might be the human factor and there may be at all times potential for provide chain disruption. With this in thoughts, it was nice to contribute some ideas from my expertise on this area to SCALA’s good apply information, which supplies pertinent perception and recommendation to companies seeking to embark on an M&A journey.”