20 AUGUST 2017
that room,” he says. “There will be a lot of position
data because basically, both sides are making a
sales pitch.” For this reason, he says, procurement
executives also should perform due diligence and
compare the clean room information with what they
know about the market.
Yiadom stresses the importance of a secure clean
room — making sure all documents and information
shared are approved by legal.
SECOND STAGE IN M&A: EXECUTION
Once the observation phase is complete and
the M&A closes, the execution phase begins.
And supply management executives agree the
organization should be prepared to move swiftly
to execute on the synergies promised by an M&A.
Issues to tackle during the execution phase include
organizational and structural decisions, systems
migration, and continuity and risk assessment.
During the Shire/Baxalta integration, the team did
its homework during the observation phase, and
“once we had the green light to execute, we could act quickly,” Listzwan
says. Within four months, the new procurement structure was in place, with
people assigned to each role.
“We wanted everyone in place quickly so the team could begin delivering
on the synergies we promised,” Listzwan says. He adds that due to the
necessity for speed in decision-making, the team got it “about 90 percent
right, but that is OK” and continues to adjust as the rest of the company
structure becomes clearer.
Procurement leaders agree the organizational and structural decisions
are among the toughest. “It’s probably the hardest thing to do,” says
Freeman. After the M&A, some procurement professionals remain with
the new organization, some leave and some stay as part of a transition
team for a few months. But Freeman has always insisted that the process
be respectful. “I always tell my managers that respect doesn’t cost them
anything,” he says. “It is not about winning or losing. You pick the best team
from the talent you have.”
Building Team Capabilities
Once the new organization was in place, Listzwan says, it was important for
his new team to understand what “good procurement looks like” at Shire.
Fedele says this was accomplished through a capability-building program in