Blog

The Importance of Data during Mergers and Acquisitions

Posted on 
January 4, 2024
Matthew Wright
Founder & CEO, Specright
Learn how Specright helps you take control of your data

A recent study published in Harvard Business Review showed that more than 60% of mergers reduce shareholder value, rather than increase it. The culprit – ineffective synergies between the two organizations. 

The disconnect can happen for a number of reasons. Some of the most common include:

  • Incomplete due diligence up front in the process
  • Difficulty merging the distinct cultures of each organization 
  • Slow adoption of shared systems
  • Data that can’t be reconciled for shared analysis

Why Data Matters for Mergers and Acquisitions

When we built Specright, we focused on organizational adoption. Soon, we saw clients like OFI, a global food ingredients supplier, using Specright for both due diligence and merging operations. The features we curated are perfect for building transparency, driving adoption and underscoring shared vision even across teams with little experience working together.

OFI Uses Data to Enable M&A Synergies

Victoria Chatman-Galloway, Global Head & VP, Packaging Center of Expertise, at OFI, summarized the challenge and opportunity perfectly, “When we acquired Olde Thompson, we knew there were opportunities to consolidate our packaging investments and save money, but with 3000 SKUs and a lot of undocumented tribal knowledge, we first had to tackle cultural differences and educate the team on specification basics.”

Specright addresses the unique challenges of merging companies by initiating standardization, ensuring data consistency, and providing less reliance on tribal knowledge that is difficult to share.

More transparent collaboration

Jumpstart cross organization collaboration with a shared data language everyone can get behind. When your team has a shared, standard-approach to data collection, even individuals who don’t have a lot of experience working together can quickly get started finding new efficiencies.

Higher technology adoption

Specright is easy to use leading to high adoption rates. Whenever organizations merge, there are cultural sensitivities, habits and previous system experience which can create barriers to working together. Specright mitigates resistance by eliminating clunky processes that slow people down, and building a foundation that raises confidence.

Seamless reporting

Data standardization makes it easy to run reports and garner insights across business units and teams.

Faster time to value

Mergers and acquisitions are about adding value to the organization, customers and shareholders. Specright shortens time to value by making it easy to collaborate and drive new product and business opportunities.

More sustainable future

Merging systems and processes across organizations can slow progress hitting sustainability goals. Specright can surface opportunities to limit slide backs and ensure a go forward plan that delivers.

“Two years into the merged company, there is still learning to be done, but trust has started to cement, explains Victoria. “We can easily run reports, and when challenges arise, people have begun to proactively seek out Specright specifications for answers. We’re on a path to reduce SKUs by 30% driving more efficiency across the organization.”

How Specright Can Help with Mergers and Acquisitions

We know every business goes into a merger or acquisition with the best of intentions. Realizing the shared vision takes time, but it also takes the right data foundation – one built on ease of use, transparency and real-time accessibility.  At Specright we’re honored to be an instrumental part of the journey for industry-leading companies.

If you’re interested in learning how Specright’s Specification Data Management (SDM) platform can enable your business to streamline challenges associated with mergers and acquisitions, contact us here.

About 

Matthew Wright

Matthew Wright is the founder & CEO of Specright. Prior to founding Specright, he spent more than 25 years in the packaging industry, holding leadership positions at International Paper, Temple Inland, and rightPAQ — a packaging company he co-founded. He has also been involved in leading multiple M&A deals in the packaging industry. He sits on the Packaging Advisory Board at Cal-Poly San Luis Obispo.

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