Future of Sourcing - Merger https://futureofsourcing.com/tags/merger en How to Weather a Provider M&A Storm https://futureofsourcing.com/how-to-weather-a-provider-ma-storm <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/Merging%20Storm.jpg"><a href="https://futureofsourcing.com/sites/default/files/articles/Merging%20Storm.jpg" title="Provider mergers and acquisitions can be disruptive. Learn to weather the storm." class="colorbox" rel="gallery-node-1181-SAOcHW3b9Ao"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Merging%20Storm.jpg?itok=9wJKyLg3" width="624" height="325" alt="Provider mergers and acquisitions can be disruptive. Learn to weather the storm." title="" /></a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>Many sourcing experts have been through a provider <a href="http://outsourcemag.com/node/968" target="_blank">merger or acquisition</a> in their time in the industry. The concern that it will disrupt existing services or alter the nature of the engagement can make M&amp;A announcements a troubling read. <a href="https://www.hfsresearch.com/pointsofview/mergers-and-acquisitions-clients-deserve-better" target="_blank">Recent HfS research</a> has put us in contact with a large range of enterprise buyers and sourcing professionals who have tackled this very challenge, particularly in the IT Services space. And while some where left unscathed, many had little positive to say about the experience.&nbsp;</p> <p>Our exposure to such a wide range of experiences provided ample opportunity to dig into how some professionals weathered the storm successfully, while others became marooned on an island of uncertainty, with some even reporting divergent experiences from the same acquisition activity. The following guide &ndash; which is based on the different buy-side approaches to acquisitions &ndash; will help you weather an acquisition with smooth sailing on the other end.&nbsp;</p> <p><strong>Communicate Your Expectations&nbsp;</strong></p> <p>From both the sell-side and buy-side we spotted a considerable mismatch in the understanding of expectations during a period of change. Often, as a new leadership team comes in or account managers take over engagements, there is a lack of clear communication, particularly as the ground level sell-side staff are unsure how delivery will be impacted, and the buy-side are looking for stability and consistency. And in some cases, that expectation of stability and consistency gets in the way of open communication &ndash; why do we need to reiterate what&rsquo;s already been cemented in existing negotiations?&nbsp;</p> <p>This is by far the most significant difference between those who weathered the storm and those who did not. Professionals who had an easier ride did one simple thing &ndash; communicated their expectations at every opportunity. They made sure that all parties understood the direction in which the engagement was currently going, the requirements of its success, any ongoing issues awaiting resolution and any other essential information for the continued success of the engagement.&nbsp;</p> <p>As one of our sourcing professionals advised, <a href="https://www.hfsresearch.com/pointsofview/mergers-and-acquisitions-clients-deserve-better" target="_blank">&quot;I was very clear that my expectations would not change &ndash; as long as they continue to deliver, there are no major barriers to us continuing to work together.&rdquo;</a></p> <p><strong>Build Internal Knowledge Hubs&nbsp;</strong></p> <p>Acquisition activity rarely happens overnight &ndash; there is often a drawn-out process where the details are finalised. Some of our sourcing experts used this opportunity to develop or enhance knowledge capture and storage internally to mitigate the impact of sell-side professionals being displaced. One sourcing expert noted the considerable impact this can have on their engagements advising that &quot;If our account manager disappeared as well, we would be working with a completely different team.&rdquo;&nbsp;</p> <p>Should this same experience be replicated for your engagements, a knowledge hub that supports getting professionals on the provider side up to speed on how you view the engagements will be undeniably helpful. In an ideal world, providers will have this all in hand and any change will be handled smoothly, but there are plenty of war stories that tell us this isn&rsquo;t the case. So, it is better to put this in order as a helpful insurance policy should things look a little unstable.&nbsp;</p> <p><strong>Find the Value&nbsp;</strong></p> <p>Speak to your provider contacts to get the inside scoop on what extra value you can expect as a result of any activity, whether that&rsquo;s a reduction in price, access to IP, talent or value-add service, or an overhaul of the existing engagement in favour of the business. Often M&amp;A activity is the result of a well thought out process that brings value to clients. For example, it may be that through the absorption of boutique firms, clients will get a better deal on licensing as the larger firm carries more heft with Independent Software Vendors (ISVs). Or it may be forming a larger practice that will offer unrivalled access to talent. Whatever the angle, make sure you know about it and are prepared to leverage it in a way that drives more value out of the engagement.&nbsp;</p> <p><strong>Bring in Experience from Your Peer Group&nbsp;</strong></p> <p>Sourcing professionals have access to a vibrant and diverse community from which to draw candid insight and advice. Many of the learnings we&rsquo;re providing here come from experienced sourcing professionals who have weathered many M&amp;A storms. If it looks like your engagements are likely to be affected, reach out to the sourcing community and get advice from peers who have been through the same process. There are bound to be plenty of battle-scarred veterans who are prepared to dish out their insights&hellip;and there are likely to be plenty more joining the ranks as more providers look to shore up their capabilities and resources through acquisition.&nbsp;</p> <p><strong>Bottom Line: M&amp;A doesn&rsquo;t need to spell out disaster if approached in the right way it could provide a tremendous opportunity to your business&nbsp;</strong></p> <p>As a final thought, it is becoming increasingly likely that existing engagements will be impacted by some form of M&amp;A activity in the future &ndash; whether that&rsquo;s the positive addition of additional talent to a deal with a large IT services provider or the upheaval of a partnership with a soon-to-be-acquired boutique. However, if the right approach is taken on the buy-side, it can shift from disaster to risk mitigation and even to increased value. It&rsquo;s all in the approach and if sourcing professionals hold their ground they can easily weather the storm.</p> <p><a href="http://sig.org/hfs-research-and-sig" target="_blank"><em>HfS Research and SIG are partners dedicated to delivering global research, insight and develop a portfolio of initiatives to benefit members and subscribers alike.</em></a></p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/merger" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Merger</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/acquisition" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Acquisition</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/communication" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Communication</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/strategy" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Strategy</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/value" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Value</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="How to Weather a Provider M&amp;amp;A Storm - Future of Sourcing" addthis:url="https://futureofsourcing.com/how-to-weather-a-provider-ma-storm"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div> Fri, 25 May 2018 16:59:49 +0000 Ollie O’Donoghue 1181 at https://futureofsourcing.com https://futureofsourcing.com/how-to-weather-a-provider-ma-storm#comments Outsource in 2016: new year, new ownership, new opportunities https://futureofsourcing.com/node/848 <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/1outsource-logo-420x215.png"><a href="https://futureofsourcing.com/sites/default/files/articles/1outsource-logo-420x215.png" title="Outsource in 2016: new year, new ownership, new opportunities" class="colorbox" rel="gallery-node-848-SAOcHW3b9Ao"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/1outsource-logo-420x215.png?itok=hDNrPuxX" width="420" height="215" alt="" title="" /></a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>As it&rsquo;s my first column of 2016, a belated &ldquo;very happy new year!&rdquo; to all Outsource&rsquo;s readers around the world. I hope the old year ended wonderfully for everyone, and that 2016 has started superbly on all fronts. As many of you will now be aware, the turn of the year has seen some rather gigantic developments here at Outsource. As of the start of January, we are now under new ownership: Outsource has been acquired by the Sourcing Industry Group (SIG), a membership organisation that provides thought leadership and networking opportunities to executives in sourcing, procurement and outsourcing from Fortune 500 and Global 1000 companies. Over the course of the last five years Outsource has partnered with SIG on a number of projects and the relationship between the two has grown ever stronger and more successful. This acquisition is really the logical conclusion to that process, enhancing both organisations in countless ways &ndash; and demonstrating in the clearest possible way the alignment between two philosophies both centred upon delivering quality, impartially. I remain as editor-in-chief of Outsource as well as becoming Head of EMEA for SIG. You can read the press release announcing the acquisition (with some background information on SIG) here. I wanted, however, to take this opportunity to share my own thoughts and feelings about what I believe to be an absolutely marvellous move for Outsource and all our readers and network members. I first met the SIG team, headed by CEO and President Dawn Tiura (the new proprietor of Outsource) back in 2011 at one of their biannual Summits &ndash; this one on the delightful Amelia Island, in northeast Florida &ndash; and was blown away by the remarkable quality of the conference, the seniority of the delegates and the peerless attention to detail demonstrated by the entire team. There was a relentless focus on delivering exactly what the audience &ndash; comprising senior sourcing professionals from some of the world&rsquo;s biggest companies, with a truly staggering amount of procurement spend under their control &ndash; required at every turn. I left an evangelist, and have remained one throughout the years that have followed, during which time I have been lucky enough to develop strong personal friendships with Dawn and a number of the other members of the SIG team. For Outsource, moving under the SIG roof places us within an organisation that has B2B delivery at its very heart and expands our reach in terms of both readers and contributors &ndash; and gives us access among much else to the dazzling array of documents that form SIG&rsquo;s Resource Center. Our ability to create world-class events in new geographies, to connect our readers with the most important figures in global sourcing, and overall to deliver to a very high level of capability everything Outsource readers want from this publication will be immeasurably enhanced by this acquisition. Moreover, it ties Outsource in with SIG University, the new certification body launched by SIG for sourcing and governance professionals which is set to transform learning and professional development in this space. I&#39;ve been fortunate enough to spend some time recently with Mark Pollack, Vice President of SIG U (<a href="http://outsourcemag.com/qa-mark-pollack-sig-university/" target="_blank">see last month&#39;s interview with Mark here</a>) and his passion for the new institution is infectious; I urge anyone with an interest (either personal or on behalf of their organisations) in learning and development to reach out to Mark directly at <a href="mailto:mpollack@sig.org">mpollack@sig.org</a> to find out more about the fantastic courses SIG University&nbsp;has to offer. I would like to thank the former owners at EMP Media &ndash; who launched and nurtured Outsource and who appointed me editor nearly six years ago &ndash; for their support and faith in the brand; and, looking forwards, I would like to welcome Dawn and the rest of SIG to Outsource and to this wonderful community, without whom of course this entire publication would be impossible &ndash; and utterly pointless! Here&rsquo;s to a great 2016 and beyond, and to many more years of success! <em>For more information on the Sourcing Industry Group (SIG) see <a href="http://www.sig.org">www.sig.org</a></em> <em>For more on SIG University, see <a href="http://www.siguniversity.org">www.siguniversity.org</a></em></p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/sourcing-industry-group-sig" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Sourcing Industry Group (SIG)</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/merger" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Merger</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/acquisition" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Acquisition</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Sourcing</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/innovation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Innovation</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Outsource in 2016: new year, new ownership, new opportunities - Future of Sourcing" addthis:url="https://futureofsourcing.com/node/848"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Mon, 18 Jan 2016 16:34:07 +0000 Jamie Liddell 848 at https://futureofsourcing.com https://futureofsourcing.com/node/848#comments