Mergers and acquisitions (M&A) are complex, high-stakes undertakings that can transform a business’s future. While the headlines often focus on financials and strategy, procurement plays a quieter but equally critical role. From assessing supplier risks during due diligence to unlocking value post-deal, procurement is often the hidden lever that determines whether an acquisition creates sustainable success.
Procurement in due diligence
The first step in any M&A transaction is understanding the true health of the target business. Beyond financial statements, procurement can provide vital insights into supplier stability, contract terms, and operational risks. Identifying dependencies on single suppliers, exposure to volatile markets, or unfavourable agreements early in the process helps acquirers avoid costly surprises later.
Procurement professionals also uncover opportunities at this stage. For example, identifying categories where spend consolidation is possible, or where stronger supplier relationships can be leveraged post-deal, often feeds directly into synergy targets.
Unlocking value post-deal
Once the deal closes, the real work begins. Integration programmes are where procurement can deliver rapid, measurable value. Cost savings through supplier rationalisation, harmonised terms, and streamlined processes can be achieved relatively quickly. At the same time, procurement teams can help align supply chains, ensuring service continuity and minimising disruption for customers.
A well-executed procurement strategy can also unlock growth. Accessing innovation from suppliers, renegotiating for improved flexibility, and embedding sustainability targets all strengthen the new entity’s market position.
Risk and compliance
In a world of increasing regulatory scrutiny, procurement also plays a vital compliance role. From ensuring supply chain due diligence in areas like ESG, to meeting data privacy and licencing requirements, procurement professionals help the business avoid costly missteps that could derail the benefits of the transaction.
The human factor
While analytics and systems provide powerful insights, procurement success in M&A ultimately relies on experienced professionals who know how to translate data into action. With over 150 years of combined experience, Accelerate’s team of procurement consultants has supported clients through complex M&A journeys, bridging the gap between numbers on a spreadsheet and real-world outcomes.
In conclusion…
Procurement is no longer a back-office function in M&A, it is a critical enabler of deal success. From uncovering risks in due diligence to driving integration value and ensuring compliance, procurement delivers impact at every stage of the journey. Businesses that engage procurement expertise early and embed it throughout the transaction are far more likely to see their deals deliver on promise.