Mergers and acquisitions often present opportunities for companies to expand into new markets and streamline operations, both of which can increase competitiveness and profitability.
The benefits of leveraging procurement at these times cannot be overemphasized. Procurement teams often have a view of the organization that is both broad and deep, a perspective that can help merging companies avoid pitfalls and seize opportunities - especially with indirect spend.
White Cap, a wholesale provider of building materials, completed 15 acquisitions in 2024 - a trend the company expects to continue into 2025. Each time a new acquisition is made, the company’s lean procurement team has to step up, ensuring that the opportunity associated with each added operation is realized in full.
Sydney Ray is a Sourcing Manager at White Cap, she joined us to share what she has learned about the role of procurement in mergers and acquisitions.
Sydney and Kelly Barner discussed:
How procurement begins and manages the process of absorbing each newly acquired company
The nuanced process of aligning spend, teams, and suppliers in these times of significant change
Lessons learned and other practical advice for procurement organizations that may be preparing to manage their company’s first acquisition
