Mergers and acquisitions (M&A) are often driven by ambitious goals: market expansion, cost savings, operational synergies. Yet, despite detailed financial modelling and integration planning, many deals fall short of expectations. One key reason? Procurement is too often left out of the conversation until it’s too late.
At Accelerate, we believe procurement should be central to M&A strategy from day one. Done well, it can uncover hidden value, reduce duplication, and accelerate integration, making the difference between a good deal and a great one.
Identifying synergies early
Procurement has a bird’s eye view of supplier relationships, contract terms, and category spend. By involving procurement during due diligence, organisations can identify where supplier overlaps exist, where economies of scale can be leveraged, and where risks lie in contract continuity or compliance. This insight can inform not only post-deal strategy but also the deal structure itself.
Streamlining supplier bases
Post-acquisition, many organisations find themselves managing two sets of suppliers for the same goods or services. Without a clear plan, this leads to inefficiencies, increased costs, and fragmented service. Procurement can lead rationalisation efforts, identifying preferred suppliers, renegotiating contracts, and standardising service levels. This can result in cost savings, reduced complexity, and stronger supplier relationships.
Accelerating integration
Procurement plays a critical role in operational integration. From aligning procurement policies and systems, to managing change with suppliers and internal teams, their role is about more than just savings, it’s about stability. A well-managed procurement function can ensure that the transition is smooth, suppliers are retained where appropriate, and operations aren’t disrupted.
Mitigating risk
M&A activity introduces risk: regulatory, reputational, and operational. Procurement is uniquely positioned to assess supplier risk, especially where the acquired entity operates in a different region or sector. From ESG compliance to contract liabilities, procurement helps ensure that risk is managed before it becomes a problem.
How procurement delivers value beyond cost
Modern procurement isn’t just about cutting costs. It’s about driving value through innovation, supplier partnerships, and sustainability. In the context of M&A, that means identifying not just where to reduce spend, but where investment can deliver long term returns. Procurement’s strategic input here can be a powerful driver of post-deal performance.
M&A: How Accelerate Procurement can help
When procurement is brought into M&A conversations early, the benefits are tangible: faster integration, lower costs, reduced risk, and ultimately, a better return on investment. At Accelerate, we help organisations unlock this hidden value, ensuring procurement isn’t just an afterthought, but a catalyst for success.