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Helping manufacturing businesses achieve mergers and acquisitions success

3rd February 2020
Joe Bush

Manufacturers across the UK and abroad will be able to greatly minimise the business risk associated with mergers and acquisitions (M&A), thanks to the launch of a new approach that maximises the effectiveness of the due diligence process during these deals. 

A brand-new Due Diligence solution has been developed by procurement, supply chain and logistics consultancy SCALA, that could reduce the business costs associated with mergers and acquisitions activity. These services can also help to identify mission-critical issues, omissions or errors that weaken or invalidate the reasons for purchase, as well as clarify the current and potential future state of a purchase.

Drawing heavily upon SCALA’s decades of expertise in business improvement projects and change management, the Due Diligence service offers a simple, operational approach that removes a great deal of the risk from M&A. Through this, businesses will see improvements in a number of areas, including profitability, service levels, systems and processes.

Once the merger or acquisition has been completed, businesses can also gain from increased profits, better-optimised end-to-end systems and contractual procedures, product and supply benefits and better access to future tender opportunities, among other benefits.

The new product has already proved popular, with SCALA currently working on active M&A projects with businesses across the manufacturing industry. Initially focused across the UK, Europe and North America, there is also potential for the offering to be rolled out worldwide over the coming months.

Nigel Smith, executive director at SCALA, with direct responsibility for M&A, said: “Given the challenges presented by an uncertain business landscape, we wanted to offer our clients a reliable way to mitigate the risks involved with M&A activity and, throughout our 19 years of operation as a long-term partner to clients, business improvement has always been among the specialisms we’re most proud of.

“The list of activities our new Due Diligence offering can cover is huge, including best practice throughout the end to end supply chain, remodelling and optimising routes to market and managing major operational and organisational businesses change. A particularly key part of due diligence, on top of prioritising how to ensure the most suitable outcome for all parties, is developing the people and culture of the company to cope with the changes that have been made once the consultants have completed their business – an area in which we specialise.

“Simply enough, reviewing business performance and areas for improvement has always been a skill set firmly in the DNA of our people, that we have recognised and added to our portfolio. The team behind our Due Diligence offering is made up of detail-focused and experienced analysts, through to board directors of large global businesses that have all acquired and divested, and therefore hold a wealth of experience in helping any business to achieve the greatest success through M&A.”

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