As part of Mergers and Acquisitions (M&As), a company should be performing a quantitative evaluation of the supply chain network and expenses of the new company prior to investment or purchase. BridgeNet Solutions can work with multiple types of data sets obtained through the standard Due Diligence process in order to evaluate what potential cost-savings opportunities would be available after completion of the M&A.
These opportunities could be short-term, such as identifying quick optimizations via routing guide compliance, and evaluate the reduction in cost which translates to additional value for the investing/purchasing company that would have otherwise been unseen.
Additionally, long-term opportunities can be seen, such as determining that current shipping rates held by the new company are higher than market average and should be negotiated or merged into any existing agreements held by the investing/purchasing company – or both.
Performing a quantitative evaluation of supply chain networks and expenses is an easy way to increase value and reduce risk of excess cost as part of a merger or acquisition’s Due Diligence process that is already being performed. The evaluation’s outcomes will also give the investing/purchasing company greater confidence in their other Due Diligence outcomes in comparison with qualitative evaluations being done.