Preparing Your Print Infrastructure for a Merger or Acquisition

IT leaders should include areas such as print infrastructure in any M&A due diligence work, in order to identify opportunities for synergies and new sources of value.

 

There was a time when IT leaders operated almost entirely as service providers to their organisations, but no longer. Today’s IT executives are front and central in the enterprise’s drive towards achieving greater strategic value. As one recent KPMG report put it: “IT organizations are not only moving forward with technology, but elevating their role as a critical business partner – they are tapping powerful technology platforms to support their holistic approach to managing the IT organisation as a business.”

This strategic role comes sharply into focus during an M&A situation, when IT leaders have a crucial role to play in the due diligence process, identifying possibilities for synergies and savings – as well as new opportunities to drive value. One increasingly important element of that process considers the print infrastructure and print management solutions of the new organisation – not least to seek out efficiencies and harmonisation.

In an M&A scenario, forward-thinking IT leaders have an opportunity to plan for new print management solutions that will harmonise print infrastructure across the combined organisation while beginning to secure the potential benefits on offer from Managed Print Services (MPS). Harmonisation can improve productivity, add value and generate cost savings ( one 2015 study conducted by the market research analyst Quocirca found respondents made an average saving of 26 % on the cost of printing through using MPS).

The process of harmonisation will begin with the more basic work of establishing basic print needs, which will reflect a number of considerations. For example, the balance between print and digital across both organisations will need to be assessed. So too will the print culture and practices of the two entities – the extent to which one or both are more costly and wasteful than necessary.

This will help IT set out an ideal user-to-device ratio for the combined organisation – as well as map out where devices will need to be located, particularly if the deal involves a buildings move – but also prepare the groundwork for a move towards more efficient printing. An MPS provider with a good track record of systems integration should be able to help with this.

Such assessments may establish that the combined print infrastructure of the new organisation will represent a cost liability that needs to be addressed as a priority. Nevertheless, where one entity is considerably more rationalised than the other, the transition process may need to be incremental, and not impose print management solutions and practices on workforces all in one go.

In addition to this more basic work, IT leaders can begin to set the scene for a more wholehearted move into MPS, working with providers to assess new opportunities. For example, to what extent have key business functions such as accounts, HR, contract management and the mailroom been automated and digitised? How might outsourcing deliver further savings and new value? And are there opportunities to use MPS to drive advances in broader business process management and performance analytics?

An M&A transaction provides a golden opportunity to ask all of these questions and more – and for IT leaders to continue to establish themselves in the role of strategic business partner. MPS can be a valuable part of the deal opportunity, as IT takes the lead in realising value – and MPS providers may be able to drive this process, particularly where they have a track record of integrating systems.

Don’t pass up such opportunities. One recent EY study found that one in two companies believed, post M&A, that giving IT a greater role in due diligence and deal planning would have delivered additional benefits. Now it’s time for IT leaders to start delivering those benefits.

Takeaways:

• IT leaders are strategic business partners with a crucial role to play in driving value from M&A
• The possibility of introducing digital alternatives and process automation should be an important part of the IT due diligence process during M&A
  
• Use M&A as an opportunity both to secure savings through harmonised and efficient print management solutions and to drive value using Managed Print Services.

For a smoother migration from print to digital across the enterprise. Download: Digital Transformation Roadmap – The 5 Priority Business Functions