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5 Ways Enterprise Performance Management Accelerates M&A Integration

  • 5 Ways Enterprise Performance Management Accelerates M&A Integration-

    Vetting and Due Diligence

    Vetting an acquisition during the due diligence process. According to BCG, the average acquirer reviews approximately 20 candidates before acquiring a company. Using EPM, the acquirer can build models across different lines of business (sales, marketing, services) that connect the potential acquisition to the larger corporate strategy. This way, they can determine in advance if the deal makes sense for the company, customers, and shareholders.

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5 Ways Enterprise Performance Management Accelerates M&A Integration

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  • 5 Ways Enterprise Performance Management Accelerates M&A Integration-2

    Vetting and Due Diligence

    Vetting an acquisition during the due diligence process. According to BCG, the average acquirer reviews approximately 20 candidates before acquiring a company. Using EPM, the acquirer can build models across different lines of business (sales, marketing, services) that connect the potential acquisition to the larger corporate strategy. This way, they can determine in advance if the deal makes sense for the company, customers, and shareholders.

While mergers and acquisitions consistently create buzz, the reality is that more than half of all deals fail to create shareholder value. In a recent study by Boston Consulting Group (BCG), only 47 percent of all M&A activity produced a positive shareholder return one year later. Many factors go into the success or failure of an acquisition, such as cultural fit, market demand, and how comprehensive the due diligence process is. However, IT is one area that can make a positive and significant contribution to the bottom line during the M&A process. Specifically, enterprise performance management (EPM) platforms.

As a refresher, Gartner defines EPM as "the process of monitoring performance across the enterprise with the goal of improving business performance. An EPM system integrates and analyzes data from many sources, including, but not limited to e-commerce systems, front-office and back-office applications, data warehouses and external data sources. Advanced EPM systems can support many performance methodologies such as the balanced scorecard."

In this slideshow, Host Analytics has outlined five ways EPM can help save costs throughout the M&A process.