Food & beverage M&A: streamlining technology The CTO role in maximising value
Food and beverage is the nation’s largest manufacturing sector. But with brands under pressure and the need to become more efficient, companies are looking to find ways to extend and manage their product portfolio.
Acquisitions have been one approach to this. Does the Chief Technology Officer have the power to transform the effectiveness of M&A activity? The CTO is all too often not central to the process. Here’s why that should be changed.
Creating value from acquisitions?
Acquisitions may be motivated by increasing the product range, widening geography, accessing innovation or new capabilities or achieving scale with multiples and consequent efficiencies. But whatever the logic going into the deal, the outcome is often not what is expected. Much of the research on M&A confirm the so-called “buyers curse”.
Shareholder value is too often destroyed – the winners are the sellers and the buyers discover they have paid too much and cannot – or do not – realise the synergies that are needed to justify the acquisition premium.
IT is critical in acquisitions.
The identification, evaluation and implementation of acquisitions is usually the domain of the CEO and CFO assisted by their staff and industry experts or advisors. But realising the synergies from post-acquisition integration is about consolidating and streamlining business processes, including people and culture, and information systems and IT.
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