As mergers, acquisitions and carveouts are establishing themselves as strategic moves for companies to remain competitive, the complexity of these transactions often revolves around a critical element – SAP system data migration. To make this successful, expert strategies in this area are essential to ensure business continuity, minimized disruption and a seamless transition.
As part of its on-demand webinar Unlocking Success in M&A: Expert Strategies for SAP System Carveouts and Mergers, one of the leading authorities in SAP system carveouts and mergers, SNP Group, shed light on the topic.
SNP’s approach and technology
SNP’s approach is centered on flexibility, speed and precision in tandem with the company’s flagship software, CrystalBridge, which serves as the cornerstone for executing complex M&A transactions.
The CrystalBridge platform assists with automated selection, modeling validation and migration of data to reduce the manual workload and accelerate timelines. SNP’s Table-to-Table migration method allows for near-zero downtime for minimal disruption to ongoing business operations. The company’s expertise in handling cross-border transactions also helps to ensure compliance with local and international data sovereignty regulations, such as GDPR.
As advised by Ibrahim Kanalici, head of M&A at SNP NEMEA, there are three key phases of SAP system carveouts and mergers:
Pre-Deal Phase: This involves due diligence, where both buyers and sellers assess the operational integrity of systems and data. Questions like “Are current ERP systems supporting operations?” and “What are the risks and opportunities?” are addressed. Identifying deal-relevant data and planning for separation are key activities at this stage.
Deal Execution Phase: At this stage, the focus shifts to separating ERP systems and applications. Buyers need assurance that standalone systems can support ongoing business operations. Strategies are developed to share only deal-relevant data while ensuring data privacy and regulatory compliance.
Post-Deal Phase: Once the transaction is complete, sellers provide transitional support to buyers as they establish independent operations. Key considerations include historical data access, data privacy compliance and the seamless exit from Transition Services Agreements (TSAs).
Real-World Example
A noteworthy case involved the carveout of BSW Group, the UK’s largest integrated forestry and timber business, across seeding, harvesting and production. In this case, SNP’s approach enabled BSW to simultaneously migrate and upgrade their system to SAP S/4HANA. The “single-step” migration saved time, reduced costs and avoided a secondary project.
The learnings from this webinar show that the success of SAP system carveouts and mergers depends on expert strategies that prioritize speed, flexibility and precision. Opening up to the expertise of partners like SNP Group that offer targeted solutions and experience to manage the complexities of ERP data migration, can make a wealth of difference. With the right approach and technology, organizations can reduce risk, maintain business continuity and accelerate time-to-value during M&A transactions.
