Summary

The announced merger of United Airlines and Continental Airlines promises to have far-reaching effects on the travel industry and its stakeholders. It also highlights how M&A events can fundamentally affect the sourcing strategies of buyers and service providers alike. While the new United will face some unique challenges and opportunities, a broad set of principles the combined enterprise should consider provide a backdrop for all companies sorting through the turbulence associated with mergers and acquisitions.

Everest’s work with other large enterprises that have navigated merger and acquisition strategies suggest a flight plan that can support success in achieving the synergies anticipated from general, administrative and other support activities via sourcing. This Executive Perspective covers the following three key imperatives, which involve focused planning for integration of the sourcing strategies as well as organization enablers to support decisive implementation:

• Align delivery strategy
• Actively manage key risks
• Organize to maximize value capture

Any company navigating the M&A journey should apply the principles outlined in this Executive Perspective in adapting their sourcing approaches as they integrate acquisitions – or risk running out runway before they are in the air.