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Contract separation strategy in M&As
Staying a step ahead
For any organisation, a reorganisation is an exciting opportunity to improve value, simplify the structure, bring focus and efficiency, and better serve customers. Corporate reorganisations or M&As can be either separation (divestitures, carveouts, etc.) or integration (mergers, acquisitions, etc.). Regardless of the M&A structure, the leadership is always focussed on quickly achieving the planned end- state, maximising returns, and minimising disruption to business.
However, the dependence of the post transaction success on relationships with suppliers and customers is often overlooked and underappreciated. If these relationships are allowed to be disrupted, it can affect the success of an M&A. Contract separation and transition services management addresses this issue.