SCALA launches guide to help navigate supply chains during M&A
The M&A market looks set to turn a corner in 2024, with the number of deals growing on last year’s figures – but the news comes as supply chain disruption continues to complicate acquisitions. Global supply chain and logistics consultancy SCALA has launched a complimentary good practice guide to help businesses navigate the continued disruption, and make the most of their deals in the coming year.
Recent research suggests that sentiment in the world’s turgid M&A market may finally be starting to turn. According to WTW’s quarterly deals performance benchmark, global deal activity increased in the third quarter of 2023, with volume rising by 16%. The news comes at a time when businesses remain relatively positive about their prospects thanks in part to AI investments could boost profitability – and further papers have since suggested that 2024 looks much brighter for deal prospects as a result.
That is not to say that things will return to normal, though. Deals in 2024 will still have to deal with many of the headwinds that have hobbled the market throughout 2023. In particular, uncertainty still clouds the global supply chain, with rising trade tensions between the US and China, the war in Ukraine, cyber-crime, and heightened costs still making the transport of goods and services more difficult than throughout the last decade.
As it looks to help firms navigate this complex environment, global supply chain and logistics consultancy SCALA has launched a good practice guide on its website. Available for free, the document provides industry insights to help businesses understand the supply chain implications of undertaking M&A in the coming months.
Speaking on the report, Phil Reuben, executive director at SCALA, said, “When it comes to M&A, there is no “one size fits all” solution; every supply chain comes with its own challenges and opportunities unique to its sector and organisation, meaning that every deal and process can look different. It’s important to dedicate time to conducting careful analysis, creating a bespoke supply chain and logistics strategy, and ensuring it is implemented successfully, with the aim of creating the highest return vs. cost, risk, and business change.”
Key considerations
Drawing on SCALA’s 22 years of supply chain and logistics expertise, ‘Mergers & acquisitions: Securing strategies for supply chain success’ compiles insights from SCALA’s experts and trusted partners. It explores factors that companies should consider before they embark on a merger or acquisition journey; and after the deal is done to ensure a smooth and successful transition.
This includes questions which firms should ask before embarking on acquisitions relating to their target’s current stock. Are the current products selling? Will they continue to be in demand? Is the stock likely to sell in the future? Meanwhile, when considering a merger, firms should additionally consider how two business becoming one could impact warehousing and logistics; and how and where growth can be maximised while the supply chain accommodates for expansion.
Alongside SCALA’s expert team, Tom Rice, former head of supply chain at Olsam, an e-commerce platform that acquires and scales brands to help them achieve hypergrowth on Amazon and digital marketplaces; and Mark Duffy, manufacturing director at KP Snacks, also contributed towards the guide.
Rice added, “When it comes to acquiring businesses and their supply chains, there are many considerations to take into account, but the aim should always be to integrate as efficiently as possible. And the work doesn’t stop post-M&A; for example, one of the major challenges can be the human element and there is always potential for supply chain disruption. With this in mind, it was great to contribute some thoughts from my experience in this space to SCALA’s good practice guide, which provides pertinent insight and advice to businesses looking to embark on an M&A journey.”
