Accelerating Value in Mergers & Acquisitions: Dow’s Success Story
July 01, 2011
Timing is everything, it is often said. Thanks to a recent transformation within Dow Purchasing, we had developed comprehensive work processes, a robust governance protocol and a disciplined organization that enabled us to effectively deliver results in a timely manner during one of the largest and most complex acquisitions in the history of The Dow Chemical Company—the acquisition of Rohm and Haas. The need for value delivery was immediate and urgent during this pivotal time for the company, and Dow Purchasing was on deck, with a commitment to deliver 30 percent of Dow’s total synergy target. Synergies are the improvement in cost position of a combined organization vs. the two stand-alone organizations.
We were able to meet that commitment and more, and we’ll describe what made it possible. First, we must start with a key enabler of our value delivery—our three-year transformation to a highly effective procurement organization. This transformation not only enhanced the value we were able to deliver to Dow businesses, but facilitated our ability to successfully navigate the sea of change on the corporate horizon.
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Timing is everything, it is often said. Thanks to a recent transformation within Dow Purchasing, we had developed comprehensive work processes, a robust governance protocol and a disciplined organization that enabled us to effectively deliver results in a timely manner during one of the largest and most complex acquisitions in the history of The Dow Chemical Company—the acquisition of Rohm and Haas. The need for value delivery was immediate and urgent during this pivotal time for the company, and Dow Purchasing was on deck, with a commitment to deliver 30 percent of Dow’s total synergy target. Synergies are the improvement in cost position of a combined organization vs. the two stand-alone organizations.
We were able to meet that commitment and more, and we’ll describe what made it possible. First, we must start with a key enabler of our value delivery—our three-year transformation to a highly effective procurement organization. This transformation not only enhanced the value we were able to deliver to Dow businesses, but facilitated our ability to successfully navigate the sea of change on the corporate horizon.
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