{"id":4521,"date":"2025-09-04T15:15:03","date_gmt":"2025-09-04T09:45:03","guid":{"rendered":"https:\/\/blogs.infosys.com\/infosys-cobalt\/?p=4521"},"modified":"2025-09-04T15:15:04","modified_gmt":"2025-09-04T09:45:04","slug":"coupling-the-right-business-and-erp-strategies-a-road-to-success-in-mergers-acquisitions-divestitures","status":"publish","type":"post","link":"https:\/\/blogs.infosys.com\/infosys-cobalt\/cloud-applications\/oracle\/coupling-the-right-business-and-erp-strategies-a-road-to-success-in-mergers-acquisitions-divestitures.html","title":{"rendered":"Coupling the Right Business and ERP Strategies \u2013 A Road to Success in Mergers &amp; Acquisitions\/ Divestitures"},"content":{"rendered":"<p>Across the globe, businesses keep facing constant challenges both within and outside such as customer behavior changes over the years, technological disruptions, dynamic geo-political situations, intense competition, financing difficulties, dynamic workforces and not to forget the global health pandemic which is the new addition in this list.<\/p>\n<p><strong>Mergers and Acquisition (M&amp;A) is one of the key interventions<\/strong> that these global corporations adopt to cautiously navigate in tough business environments. <strong>A comprehensive and fully aligned IT and ERP strategy, that works cohesively with the underlying business strategy, becomes a key ingredient of the success of the M&amp;A.<\/strong><\/p>\n<p>On a global scale, merger &amp; acquisitions (M&amp;As) have been growing over the years. Since 2000 close to 790000 transactions have been announced for close to 57 trillion USD. Between <strong>July 21 and 27, 2025, the<\/strong>\u00a0<strong>global M&amp;A market<\/strong> had <strong>649 deals<\/strong> with a total value of <strong>46.37 billion USD, out of which 23 transactions surpassed USD 500 million mark (TDV close to 36 billion USD) contributing close to 78% of the deal value<\/strong> of the week.<\/p>\n<p>(<strong>Source: <a href=\"https:\/\/imaa-institute.org\/mergers-and-acquisitions-statistics\/\">IMAA website<\/a><\/strong>).<\/p>\n<p>This blog is an attempt to throw light on the key aspects pertaining to M&amp;A\/Demergers, how the <strong>alignment of the ERP strategy with overall M&amp;A\/Demerger objectives<\/strong>, had helped these corporations draw maximum benefit out of organizational consolidation transactions.<\/p>\n<p>The <strong>typical objectives\/drivers<\/strong> for M&amp;A would be<\/p>\n<ul>\n<li>Gain access to new markets, geographic locations, consumer groups<\/li>\n<li>Achieve synergies through consolidation and collaboration<\/li>\n<li>Realize benefits through complementing (as opposed to competing) strengths<\/li>\n<li>Achieve non-linear increase in scale of operations and service delivery<\/li>\n<li>Pave way for entry to diversified industry segments<\/li>\n<\/ul>\n<p>Over the years the business strategies after M&amp;A\/Demerger had been broadly classified into 3 types:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-4523 size-full\" src=\"https:\/\/blogs.infosys.com\/infosys-cobalt\/wp-content\/uploads\/2025\/08\/PoV_MA_Blog_Picture1.jpg\" alt=\"\" width=\"2160\" height=\"543\" \/><\/p>\n<p>The success of the M&amp;A\/demerge largely lies on the right ERP strategies and correct coupling and decoupling approach taken up by these entities<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-4524 \" src=\"https:\/\/blogs.infosys.com\/infosys-cobalt\/wp-content\/uploads\/2025\/08\/PoV_MA_Blog_Picture2-1024x882.jpg\" alt=\"\" width=\"783\" height=\"674\" \/><\/p>\n<p><strong>ERP Strategies:<\/strong><\/p>\n<ul>\n<li>Need varies for business to business<\/li>\n<li>Alignment to overall M&amp;A\/demerger objectives<\/li>\n<li>Depends on the Line of Business (LoB), size, type, industry operated etc<\/li>\n<li>Existing ERP status<\/li>\n<li>Existing ERP Product support availability horizon \u2013Example a specific version may not be supported after a year or so.<\/li>\n<li>Risk appetite etc<\/li>\n<\/ul>\n<p>Choosing the <strong>RIGHT ERP<\/strong> system, is the most important decision in M&amp;A or demerger post-facto operations. It should <strong>align with the overall business strategy<\/strong> and with a clear risk and risk mitigation strategy analyzed for all possible scenarios.<\/p>\n<p>Possible scenarios include:<\/p>\n<ul>\n<li>Acquired company adopting acquiring company\u2019s ERP\/merging entity adopting base entity\u2019s ERP<\/li>\n<li>Acquiring company adopting acquired company\u2019s ERP\/base entity adopting merging entity\u2019s ERP<\/li>\n<li>Retain existing ERPs, have common reporting platform as an add-on (Example \u2013 Hyperion or any BI Reporting Tool)<\/li>\n<li>Both moving to a new ERP system as applicable to Business (For example \u2013 If both are on the verge of Sunset with their legacy systems)<\/li>\n<li>Both on same ERPs \u2013 Simple, BUT YET NOT so simple &#8211; Still some synergies may be needed (Different processes, version etc)<\/li>\n<\/ul>\n<p>At a more <strong>granular level<\/strong> it can be:<\/p>\n<ul>\n<li>Inventory org consolidation<\/li>\n<li>Operating unit consolidation<\/li>\n<li>Instance\/Environment consolidation<\/li>\n<\/ul>\n<p><strong>In case if the target application would be a NEW ERP, following key parameters can be considered in choosing the right one:<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-4525\" src=\"https:\/\/blogs.infosys.com\/infosys-cobalt\/wp-content\/uploads\/2025\/08\/PoV_MA_Blog_Picture3.jpg\" alt=\"\" width=\"949\" height=\"555\" \/><\/p>\n<p>The <strong>typical challenges<\/strong> in the ERP Integration for M&amp;A\/Demerger could be classified into five main pillars.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-4526\" src=\"https:\/\/blogs.infosys.com\/infosys-cobalt\/wp-content\/uploads\/2025\/08\/PoV_MA_Blog_Picture4.jpg\" alt=\"\" width=\"621\" height=\"290\" \/><\/p>\n<p><strong>Infosys solution framework\/approach<\/strong> revolves around addressing the above key challenges. High-level framework is as given below:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-4532\" src=\"https:\/\/blogs.infosys.com\/infosys-cobalt\/wp-content\/uploads\/2025\/08\/PoV_MA_Blog_Picture5.jpg\" alt=\"\" width=\"833\" height=\"545\" \/><\/p>\n<p>Infosys has <strong>multiple tools and accelerators<\/strong> that can enable the smooth implementation of the ERP Strategies as part of the M&amp;A\/Demerger activities such as process review checklist dos and don\u2019ts, comprehensive business process listing and flows, configuration questionnaire wizard, configuration documents, test scripts, which help the ERP implementation\/rollout projects to be done in an accelerated deployment model.<\/p>\n<p><strong>Conclusion:<\/strong><\/p>\n<p>Dynamics and challenges associated with M&amp;As have been very widely documented, discussed and there is a constant effort by organizations to make them successful. ERP systems integration is a key determinant of M&amp;A success and Infosys, armed with depth of knowledge, learnings &amp; experience gained through multiple engagements is strongly poised to advise and partner with organizations in this compelling strategic intervention.<\/p>\n<p><strong>Authors<\/strong><\/p>\n<p><a href=\"Murali_Santhanam@infosys.com\">Murali Krishnan Santhanam<\/a> and <a href=\"PrabhooK@infosys.com\">Prabhoo Kannan<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Across the globe, businesses keep facing constant challenges both within and outside such as [&hellip;]<\/p>\n","protected":false},"author":812,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[69,70,113],"tags":[425,422,427,423,426,424,420,421],"coauthors":[419],"class_list":["post-4521","post","type-post","status-publish","format-standard","hentry","category-oracle","category-oracle-ebs","category-oracle-erp-cloud","tag-business-erp-strategies","tag-demerger","tag-erp-strategies","tag-erp-strategy","tag-infosys-erp-practice","tag-infosys-oracle-practice","tag-ma","tag-mergers-and-acquisitions"],"acf":[],"_links":{"self":[{"href":"https:\/\/blogs.infosys.com\/infosys-cobalt\/wp-json\/wp\/v2\/posts\/4521","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.infosys.com\/infosys-cobalt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.infosys.com\/infosys-cobalt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.infosys.com\/infosys-cobalt\/wp-json\/wp\/v2\/users\/812"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.infosys.com\/infosys-cobalt\/wp-json\/wp\/v2\/comments?post=4521"}],"version-history":[{"count":11,"href":"https:\/\/blogs.infosys.com\/infosys-cobalt\/wp-json\/wp\/v2\/posts\/4521\/revisions"}],"predecessor-version":[{"id":4578,"href":"https:\/\/blogs.infosys.com\/infosys-cobalt\/wp-json\/wp\/v2\/posts\/4521\/revisions\/4578"}],"wp:attachment":[{"href":"https:\/\/blogs.infosys.com\/infosys-cobalt\/wp-json\/wp\/v2\/media?parent=4521"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.infosys.com\/infosys-cobalt\/wp-json\/wp\/v2\/categories?post=4521"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.infosys.com\/infosys-cobalt\/wp-json\/wp\/v2\/tags?post=4521"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/blogs.infosys.com\/infosys-cobalt\/wp-json\/wp\/v2\/coauthors?post=4521"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}