Refining Analysis of M&A Impacts

Download the full 2018 annual report

Mergers and Acquisitions (M&A) can impact your supply chain in many ways.  M&A events were the most frequently reported supply chain event type of 2018. Together with Reorganization/Management Change and Business Sale/Spin-off, events arising from changes in ownership or management accounted for 30% of the event alerts during the year and three of the top five most reported event types.

These types of events usually have indirect impacts on supply chains that do not manifest immediately. But ultimately, changes in ownership or management can lead to serious disruptions and even a total loss of supplier capacity as acquirers make strategic decisions around exiting certain non-core business lines and/or selling business units to finance the acquisition

Supply chain managers must monitor any post-M&A changes closely to assess how suppliers on all tiers could be affected. This can be most effectively done in a supply chain risk management system that is continuously monitoring and evaluating all possible impacts on suppliers. For example, if an acquirer decides to sell a site in Asia, those customers relying on supplies from that site will be alerted if they already have mapped their supplier sites through Resilinc.

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