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Helixr Perspective #13

How M&A exposes process weaknesses in life sciences

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Process transformation

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Growth and acquisitions are often blamed when processes start to fail. In reality, they rarely create new problems, they usually reveal existing ones.
When ERP systems and operating models aren’t designed to scale, M&A quickly exposes fragmentation, inconsistency and hidden complexity across an organisation.

The questions that surface post-deal

Following acquisitions, we consistently hear the same questions from corporate functions, business owners, operations and IT leaders:

  • How do we integrate ERP systems after an acquisition?
  • Why does every acquisition break our core processes?
  • How do we standardise processes across multiple business units?

These questions often appear technical in nature. In reality, they point to something much deeper.

The real issue: process without a blueprint

Most post-deal challenges stem from fragmented operating models.

Over time, ERP systems, particularly SAP, become a patchwork of:

  • Local process variations
  • Historical decisions
  • Local workarounds
  • Disparate system landscape

Without a clear process blueprint, acquisitions force organisations into false choices:

  • Should the acquired business adopt the existing model?
  • Should the parent organisation adapt to the new one?
  • Or should both be reworked entirely?

Too often, the default answer is simply to force adoption of existing processes, without validating whether they are actually fit for purpose.

One size does not fit all

There is a persistent belief that standardisation means ignoring the realities of different businesses. In practice, the opposite is true.

Effective process integration starts by understanding:

  • Why the acquisition was made
  • What capabilities truly matter to the future business
  • Which processes enable scale, and which enable differentiation
  • What functions will be centralised

Not every process should be identical. But every process should be intentional.

The human factor in process integration

While ERP systems and process blueprints are essential, research shows that most M&A failures stem from cultural and people-related issues, not technical challenges. Even the most robust processes fail if teams resist change or lack clarity on new ways of working.

Three critical cultural risks emerge during life sciences M&A:

  • Silos persist, as acquired teams often retain legacy processes due to unclear expectations or fear of losing operational control.
  • Communication breaks down without structured dialogue, leading employees to default to familiar workflows and create inefficiencies.
  • Leadership misalignment occurs when executives don’t model the new operating model, causing adoption to stall at all levels.

To mitigate these risks, organisations should:

  • Co-create processes with cross-functional teams to build ownership.
  • Align performance metrics to integrated goals, not just business unit targets.
  • Prioritise change management as a core workstream, not an afterthought.

Companies that address culture alongside systems achieve faster integration and higher employee retention post-deal.

Reinvention is rarely the answer

Post-deal integration does not require starting from scratch.

The opportunity lies in:

  • Reviewing existing processes across both organisations
  • Adopting proven best practices where they exist
  • Changing what no longer serves the strategy
  • And defining new global processes where necessary

This approach avoids both extremes: blind replication and unnecessary reinvention.

ERP should enable scale not constrain it

When ERP is used as an integration shortcut rather than a strategic enabler, complexity multiplies.

Organisations that scale successfully treat ERP as a platform for process clarity, not a dumping ground for inherited ways of working. They invest upfront in defining how the business should operate, before deciding how systems should support it.

The opportunity: Turning integration into advantage

Growth and M&A don’t break processes. They reveal whether an organisation truly understands its operating model and strategic intent. The difference between those that struggle and those that thrive lies in how they approach integration.

Life sciences organisations that treat M&A as a catalyst for operational clarity—not just growth—outperform their peers. They use integration to:

  • Define clear process blueprints aligned with business strategy, not just system constraints.
  • Simplify decision-making by eliminating redundant systems and legacy workflows.
  • Equip teams to adopt new processes, not just comply with them.

A litmus test for leaders:

  • Can you explain your operating model in simple terms?
  • Do your ERP systems enable agility, or do they perpetuate inefficiencies?
  • Are your teams aligned and empowered to work within the new framework?

The best-prepared firms don’t just survive integration; they use it to redefine how they compete. By addressing culture, technology, and strategy in tandem, they integrate faster, scale smarter, and realise value sooner after a deal.

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