NetSuite is a great platform for company growth, and we see many customers leverage NetSuite as they accelerate their growth through mergers and acquisitions (M&A). If you are planning to incorporate a new company into your NetSuite environment, we have some suggestions of things to consider early in the process to help your project start off smoothly.
Map General Ledger Accounts and Financial Segments
General Ledger accounts, departments, classes, and any other financial segmentation you use should be reviewed and mapped as early as possible. This helps not only in data migration and system setup, but also in identifying business processes you may not be aware of. By reviewing these items, you may uncover details that were not previously known. For example, in reviewing a Software and Technology company, you know most of the business is software subscriptions, but in looking at the revenue accounts, some project services revenue is identified. Now you know you need a plan for how projects will work in NetSuite either in your existing setup or maybe through new features.
Identify Duplicate Vendors and Customers
Reduce the frustration of messy vendor and customer records by comparing these lists for duplicates. Unnecessary confusion will quickly appear when entering invoices if this step is missed. Often the vendor is the same but there were different addresses or contacts. Highlighting these and adding them to existing records will keep your system clean and useful.
Map out your Subsidiary Structure
There are a lot of details to consider when imagining your future subsidiary structure after the merger or acquisition is complete. Some of the questions to consider include:
- How do you need to report financials?
- What is the legal structure in place?
- How will operations be impacted?
This step is often one of the more complex and critical decisions necessary when embarking on this journey.
Create a Seamless M&A Strategy with SquareWorks
Growth is exciting! Our team of talented consultants are here to help guide you through your M&A strategy to make sure you set up the most effective structure for your company’s needs. If you would like to learn more about SquareWorks M&A projects, check out our recent case study here where we helped a software and technology company consolidate six acquired companies into their NetSuite environment.
If you feel your company could benefit from talking through best practices related to M&A activity within NetSuite, please reach out to us here. We would love to hear from you!