Helping a US-based petrochemical leader become acquisition-ready

Mergers and acquisitions have always been considered critical to foster economies of scope. But the complementary fit demands amalgamation of company codes to make the transition flawless and seamless. So, when our client — a US-based Global Leader in petrochemicals manufacturing — looked to make their acquisition by a world leader in speciality chemicals seamless, they approached us considering our deep M&A and SAP SLO expertise. We helped the client commingle in a perfectly harmonized SAP landscape.

Snapshots

Challenge:

Conserving SAP data integrity and providing seamless access to historical data; Reducing the conversions and cutovers; Rightsizing operations and enabling IT synergy.

Solutions:

Deployed SAP SLO tools and made Transitional Services Agreement (TSA) work for the client; Enabled seamless cutover and helped in canceling redundant initiatives; Streamlined IT systems and restructured the system.

Benefits:

Seamless access to transactional data; Increased efficiency, optimized processes, and reduced costs; Efficient transition planning and rapid decision making.

Key Challenges

The client ran its business functions in the SAP landscape. To make their acquisition seamless, they had to maintain SAP data integrity and allow instant transactional data access to the acquiring company.
The client had three different company codes, and eliminating redundant initiatives was complex. They found it challenging to migrate large volumes of data, avoiding the possibilities of downtime and business disruption.
Because the acquiring company was from different geography, the client faced difficulties in rightsizing operations and synergizing their IT systems to attain cultural adjustments and achieve accuracy in legal and financial reporting.

Our client is a leading US-based Petrochemical, Glass, and Gases manufacturer. Found in the year 2013, the client has a niche in high-margin specialty applications and serves globally to different market segments, including electronics, energy, environment, oil and gas, pulp and paper, polymers and chemical synthesis, food and beverage, cleaning, and sanitization, and pharmaceuticals and cosmetics.

Our Solutions

We successfully ran the company code delete project with an SAP SLO perspective, ensuring the client could prepare for their acquisition as per the TSA, within stipulated time and budget. Right from planning, transition, and separation, our experts engineered the complete integration phase to enable gathering, structuring, and migration of the SAP data. We helped strategize and execute steps that allowed the acquiring company to have exclusive access to historical and transactional data, including production orders, sales orders, and purchase orders.

We leveraged our M&A domain expertise and SAP SLO knowledge to analyze the client’s disparate business systems and align them with the existing SAP landscape. We helped define the TSA approach, ensure data consistency, and facilitate carve-out. As a result, we reduced conversions and cutovers while ensuring business continuity and operational support and minimizing the impact of transition on the ongoing business activities.

Our SAP System Landscape Optimization experts created a different company code, purging the three other existing company codes and configuring the planned acquisition. We further optimized the company size to streamline operations and reinvent the IT system to repurpose functionalities concerning employees, customers, and other stakeholders. Besides, we made the new system pro-integration, assuring the new company code is obliged to create profit and loss statements, account charts, and balance sheets, enabling adherence to the local audit and taxation laws and accuracy in legal and financial reporting