After the announcement that Shire plc, a global biotechnology company, planned to acquire Baxalta Incorporated, Stephen Listzwan, head of procurement at Shire, vividly recalls “nervously high-fiving” members of his leadership team. A supply management
professional who has lived through a merger or an acquisition can
relate to those mixed emotions. That’s because an M&A offers
procurement organizations unique opportunities — with intense
pressure to perform.
As Listzwan explains, “We knew the business integration would double
our external spend, which was a great opportunity for us to deliver
value to the company. At the same time, there were high expectations
to deliver synergy from the deal.” Such expectations and opportunities
are among the reasons supply management professionals should
understand the dynamics of an M&A because it likely will affect them
at some point in their career.
Calling the M&A market “healthy,” an April 2017 report by Ernst &
Young notes that while technological and digital disruptions are major
drivers of M&A, “geographical expansion to secure supply chains and
increase customer reach will accelerate cross-border M&A.”
Understanding company targets,
being prepared to execute on
goals quickly and choosing the
best talent can mitigate stress
and deliver value during a
merger or an acquisition.