Why isn’t BPO used more frequently in M&A deals?

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Beyond a shadow of a doubt, the CFO and finance department have the toughest job during an M&A deal. There are mounds of financial data to be mapped and aligned. The merging of financial calendars, defining GA standards across borders and different currencies to compute can make for a rough transitional landscape. So why aren’t […]

Beyond a shadow of a doubt, the CFO and finance department have the toughest job during an M&A deal. There are mounds of financial data to be mapped and aligned. The merging of financial calendars, defining GA standards across borders and different currencies to compute can make for a rough transitional landscape. So why aren’t more companies looking to outsourcing of business processes during what is a time of overload?

Outsourcing F&A processes immediately following a merger offers the ability to bring in new competencies that can not only augment the internal capabilities, but shed new light on process improvements and bring about new competencies. During such a hectic time as in a merger or acquisition, why don’t more CFOs leverage the power of teams that understand how to ease a transition? Perhaps they feel that taking on a new project such as outsourcing means added pressure and added balls in the air, yet this is the most opportune time to eliminate redundancies, streamline and bring transformation.

In fact, there are a few areas during M&A activity where a provider can add immediately value:

  1. F&A and BPO outsourcing providers have the scale and expertise to effectively gather the financial data that needs to be aligned during a deal. They can spread globally in a matter of days to ensuring alignment is achieved in the shortest time possible.
  2. One of the most important areas of finance during an M&A deal is data integration. Enabling an outside team to map the different data sets and technologies alleviates huge burdens from the finance and IT teams and helps to quickly deliver a single instance of data – a single version of the truth.
  3. Once the integration is done, it’s time to consolidate. Business process outsourcing enables CFOs to work on consolidating the teams and creating a newly structured culture while the provider can work on ensuring best practices and standard processes for compliance and reporting.

Our view is that it makes perfect sense to evaluate an F&A / BPO outsourcing partnership in advance of  M&A deals. Let the partner take on the logistics so that you, the CFO or finance executive and your team, can focus on ensuring a seamless transition.
 
 
 

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