Experience has shown that when business and IT align, the success rate increases when carrying out carve-outs and M&A transactions. By focusing on business goals and having a comprehensive understanding of business processes, the IT-department can implement the necessary changes with more flexibility and less friction. The better the cooperation is between IT and other departments, the greater the entire project‘s chances of success.
Preparing a business for a carve-out, spin-off or sale is a complex exercise that requires effective planning and strong execution. Critical to any carve-out process, including the spin-off of a subsidiary, are deep technical knowledge and analytical skills around not just the tactical extraction and separation process, but also the various regulatory and accounting requirements to be addressed in executing the transaction.
Two companies, two (or more) SAP software systems: ideally the merged synergies in the infrastructure can be used to improve the handling of common processes. When viewing specific business cases and synergy effects, these projects appear to make sense from a business standpoint. As such, the success of such projects is increasingly dependent on the IT-department.
When companies sell off business units, they are now more likely to separate the data for the divested units from their production SAP landscape. Many sales agreements require the data for the transferring business unit to be handed over in an SAP system.
A more reliable alternative is a specialized, tried-and-tested tool like SNP Transformation Backbone, which transfers all specified data to the divested unit‘s system.
Mergers & Acquisitions Activities 2015
In 2015, global merger and acquisition activity exceeded $ 5.2 trillion, making it a record-setting year. As one company seeks to onboard and integrate a new acquisition, the original owner seeks to spin it off in the shortest possible time. Since divestitures are not considered everyday business for most organizations, they typically land on the CIO’s already-full plate. Transformation projects such as carve-outs or mergers & acquisitions (M&A) represent some of the greatest challenges to companies and their IT-departments. When viewing specific business cases and synergy effects, these projects appear to make sense from a business standpoint. As such, the success of such projects is increasingly dependent on the IT-department. So strengthen your position.
Merger of Seven Company Codes in only Twelve Weeks
"SNP’s team of consultants was very professional and extremely reliable. After the transition over the weekend, the launch was carried out smoothly and without any issues."
Angelika Gehlert, Head of ERP systems, PATRIZIA Immobilien AG
SNP Transformation Backbone
The Software Standard for your M&A-Project
SNP Transformation Backbone is the only software-based solution that addresses both business and IT-driven transformations – thus facilitating better communication and interaction between technical and business teams during these critical projects. SNP Transformation Backbone actively supports every single step of your transformation. It enables you to master all of the transformation logistics – from continuous analysis of your corporate data and processes to careful planning and rapid implementation.
Global Separation of Hewlett-Packard´s SAP Landscape
A business division‘s duties often involve the sale or closing of business segments, such as plants or offices. Business data from the respective ERP and archive systems must be separated and transferred to a new system in an appropriate and consistent manner. In 2015 SNP successfully concluded the global separation of Hewlett-Packard´s SAP landscape. The software-based transformation approach created the new IT-infrastructure of around 50 terabytes of 16 systems in 14 days! SNP Transformation Backbone, the industry standard software, ensured that ongoing operations were maintained.
In order for the factory in Brazil to better tailor its business processes to local clients, the companies management decided to convert the centralized SAP ERP system to its own local solution. Norske Skog’s IT-department was tasked with carving out the Brazilian factory from the centralized SAP ERP system. For this complex project, which had just one weekend to go live, and where the cost accounting currency also needed to simultaneously be switched from US dollars to Brazilian reals, Norske Skog got help from SNP.
As a result of the merger between the power plant divisions of Mitsubishi and Hitachi, the former Hitachi Power Europe GmbH in Duisburg was renamed Mitsubishi Hitachi Power Systems Europe GmbH and commenced operation on February 1, 2014. Four of the 58 companies affected by the merger are located in Germany.