Could M&A Activity be a Springboard for Controllership Transformation?
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- A poll of over 1,700 professionals involved in M&A deals found that 68.4% of organizations undertake finance transformation efforts as part of M&A activity, most commonly after a deal closes. - When asked about challenges for the next 12 months, the greatest was identified as manual, outdated, or duplicative business processes (28.4%). - In terms of implemented technologies as a result of M&As, analytics (21.2%) and workflows (21.1%) were most common. - Over 60% of organizations expect to pursue 1-5 M&A deals in the next 12 months.
Could M&A Activity be a Springboard for Controllership Transformation?
- 1. Copyright © 2022 Deloitte Development LLC. All rights reserved. How mergers and acquisitions drive controllership transformation Deloitte poll results
- 2. How mergers and acquisitions drive controllership transformation Copyright © 2022 Deloitte Development LLC. All rights reserved. 2 Methodology 1,700+ Professionals involved in their organizations’ M&A deals were polled online during a Deloitte webcast titled “How mergers and acquisitions drive controllership transformation: Controllership Perspectives” on October 13, 2022. Answer rates differed by question. In some instances, immaterial amounts (e.g., +/- 0.1%) have been added to or removed from the “Don’t know/not applicable” answer responses to bring results to 100% total for each question.
- 3. How mergers and acquisitions drive controllership transformation Copyright © 2022 Deloitte Development LLC. All rights reserved. 3 Votes received 2,137 Does your organization undertake finance transformation efforts (e.g., digital transformation, process simplification, and automation) as part of M&A activity? Don’t know / not applicable = 12.3% Yes, prior to a transaction (e.g., pre-merger planning on what merged finance function will look like) Yes, during the transaction (e.g., initial work prior to deal closing) Yes, post-transaction (e.g., transformation work begins only after deal closes) No, my organization does not use M&A as an opportunity to transform the finance function 12.9% 21.9% 33.6% 19.3% 68.4% organizations are undertaking finance transformation efforts
- 4. How mergers and acquisitions drive controllership transformation Copyright © 2022 Deloitte Development LLC. All rights reserved. 4 Votes received 2,072 Thinking about the transaction work your organization’s finance and accounting teams do, which do you think will pose the greatest challenge in the next 12 months? Don’t know / not applicable = 14.7% Manual, outdated, or duplicative business processes Lack of appropriately skilled finance and accounting talent (e.g., comfortable with intercompany accounting, relevant accounting standards for new company) Disparate or outdated technology systems for managing accounting and financial processes Conflicting KPI tracking and related reporting approaches (e.g., for key issues like ESG) 28.4% 26.2% 25.0% 5.7%
- 5. How mergers and acquisitions drive controllership transformation Copyright © 2022 Deloitte Development LLC. All rights reserved. 5 Votes received 1,852 Has your controllership team implemented any of the advanced technologies as a result of M&A transactions? Don’t know / not applicable = 31.1% Analytics Workflows Special-purpose technology to execute carve-out financial statements or purchase accounting ERP modernization Virtual project management tools and clean rooms 21.2% 21.1% 15.6% 5.9% 5.1%
- 6. How mergers and acquisitions drive controllership transformation Copyright © 2022 Deloitte Development LLC. All rights reserved. 6 Votes received 1,753 Do you expect your organization to pursue an M&A transaction in the next 12 months? Don’t know / not applicable = 16.4% 52.3% 10.4% 20.9% Yes – expect to pursue 1-5 deals Yes – expect to pursue more than 5 deals No 62.7% organizations expect to pursue an M&A transaction in the next 12 months
- 7. How mergers and acquisitions drive controllership transformation Copyright © 2022 Deloitte Development LLC. All rights reserved. 7 Media Contacts Christine Oh Public Relations Deloitte Services LP chrisoh@deloitte.com Taylor Graham Public Relations Deloitte Services LP tagraham@deloitte.com
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