How Master Data Management Solutions Help with M&A

Why Should Data Integration Be Prioritized Post-M&A?

When companies merge, or one acquires another, they must find a way to reconcile disparate systems, varying data formats, and overlapping portfolios of customers and suppliers. The risks of delaying this process, or trying to take shortcuts, can create many difficulties impacting operations, revenue, and ultimately the reputation of the new combined business. 

Duplicate and inconsistent customer records and contact information can result in degraded customer service quality, with confused, unhappy customers receiving multiple emails or other touches on the same or similar issues. And when these customer records are separated into data silos in different parts of the company, some of the most important goals of the M&A — such as cross-selling opportunities and enhanced customer insights — will be lost.

Other missed opportunities from the data chaos and inefficiency might take the form of higher costs or wasted resources from lack of a unified view of inventory or sales. And compliance risks may become elevated when different teams are working with different data that may or may not comply with data privacy regulations like the EU’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).

Beyond Integration: Unlocking Synergies Across Functions

A successful master data implementation goes beyond simply merging data. It can empower the combined enterprise with better capabilities than the individual companies had pre-M&A, in functions that work to grow revenue and expand markets as well as those that focus on corporate finance, supply management, and risk management. Just a few examples:

Marketing and sales teams gain a unified customer view that enables personalized interactions and consistent messaging across all touchpoints. Cross-selling opportunities and targeted marketing campaigns become possible with a comprehensive understanding of the combined customer base.

Corporate compliance benefits from the ability to more definitively resolve the identities of customers or third parties, which makes due diligence processes — such as detecting watchlist or sanctions violations — more accurate. When disparate data sources are eliminated and data quality is enhanced, investigations require less time, and false positives occur less frequently.

Procurement will see disconnected and duplicated supplier entity data brought together into unified supplier profiles, which create strategic advantages in sourcing and negotiating. Mastered supplier data also enables better detection of supply risks associated with geographies, financial status, and other factors. 

Customer relationship and account management teams will be able to work with clean, deduplicated records, helping ensure that accounts receive consistent, customized service and that the right people within accounts are contacted at the right time for the right reasons.  

How the Dun & Bradstreet D-U-N-S Number Supports M&A

Dun & Bradstreet's D‑U‑N‑S® Number is a unique identifier for businesses, used globally to manage business relationships. In the context of the M&A process, it can help streamline the integration of customer, supplier, or third-party data coming from multiple systems of record across the merging entities’ tech stacks. 

Within the Dun & Bradstreet Data Cloud, each business entity is assigned a D-U-N-S Number to create a unique “fingerprint,” helping to ensure that business units are accurately represented in the unified data environment. Those entities can then be linked to other businesses to establish corporate hierarchies or family trees, which helps to confirm their identities across disparate data sources and reduces the risk and cost of duplicate records.  

The business identity validation provided by the D-U-N-S Number assists enterprises in conducting due diligence by clarifying the view of a company’s business credit file, including credit history, credit rating, and any suits, liens, or judgments against the company.

Programmatic M&A: The Advantage of Data Quality

Across industries, many dealmakers pursue M&A programmatically, supporting their growth strategy with multiple acquisitions occurring on a regular cadence. This means that companies that have successfully integrated their data post-M&A will likely need to repeat the process at some future point. 

Maintaining data quality and data governance practices can help significantly to make future M&A go more smoothly. Dun & Bradstreet works with enterprises to help their data remain complete and up to date. Its Data Quality Framework provides standards and guidelines for data from tens of thousands of reliable sources. And by enriching companies’ internal data with external business, consumer, and credit information, Dun & Bradstreet assists in creating valuable insights into customer behavior, market trends, and competitive dynamics — all of which contribute to reducing risk and creating value within M&A.

Successful acquisitions are defined by more than just the completion of financial transactions. They are defined by the ability to seamlessly integrate data, unlock synergies, and create a unified organization. By leveraging Dun & Bradstreet's master data solutions, companies can help ensure that their acquisitions deliver on their promises, transforming potential into sustainable growth.