“Purchasing Consultant Provides Cost Savings of $500K For Our Merger & Acquisition!”

“Purchasing Consultant Provides Cost Savings of $500K For Our Merger & Acquisition!”

Have you maximized synergies and increased the value of your Mergers & Acquisitions? Before my clients work with me, they will either say not really that much or not to the extent we had targeted.

It does not need to be this way. Senior executives and managers at our clients delight in the way we unlock synergies and create incremental value for them when one company acquires another company or when two companies decide to merge. 

Let’s examine some key tips that will help maximize the incremental value of your Mergers & Acquisitions.

1.    Commonality of Supply:  

Look at the suppliers being used at both companies for all addressable indirect and direct costs. Then separate them into two groups, common suppliers and uncommon suppliers that supply like products and services. Determine who has the best terms and conditions, pricing, relationship, and who has the capacity to best service the new entity. 

2.    Category Strategy:

Develop category strategies and target savings for all addressable indirect and direct costs. Many times, this is more of an art than a science and or a little bit of both! Once your target savings are defined within your category strategies, a best in class approach is to share these with the finance team to ensure that targeted savings are transparent, achievable, and properly phased into future budget planning.

3.    Supplier Collaboration:

Work with your suppliers to discuss and achieve target savings. As you move through this process, you will quickly determine your ongoing suppliers and whether they will be strategic or tactical. As you carefully articulate the vision for the merged entity, you will get a sense of those suppliers that will meet or exceed your savings targets!

Now for a quick case study: Bill, the President of a large food manufacturing company came to me after they acquired another food company with a popular well-known brand that sold the majority of their food in glass packaging. Bill wanted to see if Purchasing Results, LLC could reduce the existing costs for glass packaging. Utilizing our knowledge of the market, preferred pricing programs, proprietary formulas, and analytics we were able to provide Bill with a new glass program along with $500K in annual savings!

Companies come together for many reasons including greater market share, geographic expansion into other markets, and diversification of their products and services. However, some of the most important reasons for mergers is to maximize synergies, cut costs, streamline operations, increase profits and to create incremental value.

Our professional procurement approach leverages economies of scale of both company’s direct and indirect costs, delivers significant cost savings and provides a path to enhanced profitability.

Let me help you!

If you want to know how to save more on your cost of goods and services and how to quickly and easily optimize your existing programs click here to qualify for your complimentary strategy session with me to explore that…and to find out what you can do to have a results breakthrough.

I have a limited number of appointments available and request that only business owners and executive management who are ready to take the next step and serious about dramatically increasing their results apply for a time to talk.

Jack Trotsky is known by his clients as “The Purchasing Consulting Master” and “Cost Slasher.” His business owner and senior executive clients say he provides a high level of measurable cost savings, a competitive edge, and lower operating costs and increased profitability year over year. Working with Jack requires no out of pocket costs. Pay only for results – you pay nothing until he shows you what you can save. With a Fortune 500 pedigree at GE, ConAgra, and Hunt-Wesson, he launched his purchasing consulting firm in 2015 and has grown it into what is today PurchasingResults.com. Jack has a long history of transforming procurement processes, implementing and managing change while providing a competitive cost advantage for businesses across a variety of industries. He has spoken all over the US and internationally, at universities, as well as at training & employee development workshops and conferences. Jack’s clients include GE, Gate Gourmet, Retail Companies-various projects including negotiated leased space, Large Food Distributors, National Dry Ice Company, Consumer Packaged Goods Companies, Industrial Manufacturers, Service Companies, and Food Manufacturers. He currently resides in the Denver Metropolitan area.

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