How mergers and acquisitions transactions can drive controllership transformation
Leveraging the deal to deliver value beyond the transaction
In the face of disruption, mergers and acquisitions transactions represent opportunities to evaluate finance initiatives and capture value beyond the transaction. The controllership function has an opportunity to use M&A transactions as catalysts for transformation and leverage the deal to deliver the next generation of controllership.
A blog post by Beth Kaplan, Jenny Gilmore, Maria Bunch
In the face of disruption, technological innovation, and accelerating industry convergence, more and more companies are aiming for more transformational change, and many are focused on achieving that transformation during the mergers and acquisitions (M&A) transaction process.
M&A transactions represent opportunities to evaluate finance initiatives, empower strategic improvements, and capture value beyond the transaction. The controllership function has an opportunity to use M&A transactions as catalysts for transformation and leverage the deal to deliver the next generation of controllership. These catalysts may include broader ERP modernization, utilizing controllership to enable business partnering, IPO readiness, and standardization or centralization.
However, every deal is not the same, and the various aspects of a transaction may determine whether an organization transforms and how the finance and controllership functions are affected. What is most crucial to transformation while transacting is for an organization to define the path that leads to the outcomes it is trying to achieve. This starts with an end-state vision, understanding the integration strategy, and executing leading practices for planning and organizing around a large transaction.
Here are some key insights and leading practices when planning for and organizing around a transaction.
Leading practices: How to plan for and organize around a large transaction
Leveraging the deal to deliver the next-gen controllership
While challenges become acute when integrating or separating the business, controllership can leverage the current environment and opportunities to set a platform for growth and transformation to a controllership “in the green.” Here are some of these opportunities:
Deals can accelerate the business case to ERP transformation. Implementing leading technology enables strategic controls modernization. Cloud can help deliver on the promise of a seamless record-to-report process, and process automation can improve employee experiences and the bottom line.
Advanced analytics are becoming a competitive advantage. A strong data model early in the transaction can reduce redundant effort across the controllership organization. Harmonized data also fuel analytics, enabling critical business analysis and decision-making.
New and alternative delivery models enable transformation. Upskilled, tech-savvy accountants with cross-functional experience are the new normal. In addition, 24/7 virtual delivery models are transforming the traditional accounting department. Emerging special-purpose technology and workflow solutions may reduce business disruption and accelerate the adoption of new roles and responsibilities.
