Spend Management and M&A

For years, I've been harping on the power of Spend Management to help companies not only make the right M&A decisions before a transaction, but to help realize post deal acquisition synergies. During Ariba's analyst day, Mark Clouse, who runs Ariba's sourcing consulting organization, discussed how his company has worked with Kohlberg and other private equity firms to analyze acquisition related procurement synergies prior to a transaction. But private equity firms aren't the only ones looking at deals based on Spend Management savings opportunities. A range of acquisitive companies across industries are considering procurement related synergies and cost savings opportunities as they look at potential acquisition candidates. And they're often turning to spend visibility technology from a range of providers to help guide their analysis. What's made this possible? The rapid deployment capabilities of analytical packages from a new breed of software vendors such as BIQ can make initial analysis and data crunching a snap. Of course Ariba, Emptoris, Zycus, SAS, Verticalnet, Procuri and others also have related capabilities as well (but often with more of a solution-driven approach). Stay tuned later in November as I do a deep dive analysis on the analytics and spend visibility capabilities of all of the vendors that I just mentioned.

Jason Busch

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