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Top priorities for deal-making post-COVID-19
Top priorities for deal-making post-COVID-19
Prerana Gupta

Technical Content Writer at Draup

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Top priorities for deal-making post-COVID-19

27 May 2020

Now is the time for the companies to capture business advantages in response to this pandemic and reap significant profits post-COVID-19. With businesses exploring various ways to survive amid crisis, the only hope is that this situation will end soon. Moreover, the changes it has brought will be subsided and bring an array of new opportunities.

The pandemic is creating havoc on businesses, delaying the business activities over the past few months. However, companies need to channelize their processes/functions in such a way that they can enable various opportunities once this calamity takes a stop. At Draup, we have figured out a few steps that can help service providers roll-out the best advantage areas to grow in the post-COVID-19 world:

  • Modernization of IT infrastructure: Digital transformation was a top priority in almost every organization before pandemic struck the world. As businesses prepare to align their objectives to flourish in the post-COVID-19 world, modernizing IT infrastructure is key to accelerate the business operations/functions. For instance, companies are looking to migrate legacy software/applications to a centralized cloud environment for easy access from anywhere and help in critical situations like this outbreak. Cloud Service Providers (SP) can develop strategic sales pitch to these companies for cloud-based software/app offerings, that can lead them to win huge deals.
  • Diversification from China: A lot of companies are changing their manufacturing base out of China. Various European nations like Germany, France, Spain, must go through government approval for the acquisition. To help manufacturers shift their factory units out of China and save from supply chain disruption in this pandemic, Japan has reserved 243.5 Yen ($2.2B). $2B is for the organizations starting its manufacturing in Japan and $0.2B for those looking to establish their production sets in other countries. SPs can target these companies and offer their value propositions for sales engagement.
  • Mergers & Acquisitions (M&A): In the wake of the coronavirus outbreak, it may happen that various small businesses are merged/or acquired by large entities. It is quite different to liquidate and ascertain certain factors like contractual turnkey infrastructure Engineering, Procurement and Construction (EPC) in normal circumstances. However, in unforeseen situations like COVID-19, the budget spikes up by 5% or more of the total costs towards contingencies. This calls for an immediate action item for the M&A practitioners/SPs to upgrade themselves with the functional templates and their changes. Further, they can reassess the cost impact, de-risk operations, enhancing sustainability and the way these can be priced in the valuation matrix.

Companies are expected to show a lot of appetite for new growth opportunities, shifting their services to enable meaningful returns in the post-virus-hit world. Draup’s sales intelligence signals give industry-specific information to the service providers and help them in bidding their proposals to such companies. Having a list of unique customized offerings for targeted organizations paves the way for increasing sales revenue and build long-term business partnerships.