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IFP and Mergers/Acquisitions

October 05, 2009

IFP has been successfully used in many countries over the last 18 months for building consolidated databases for companies involved in mergers and acquisitions.

These databases allowed users to analyse sales and P&L data for all companies involved, even though each company used completely different coding of products, cost centres and accounts.

IFP can accommodate multiple charts of account, product grouping structures and definitions of key schedules (e.g. P&Ls) in a single database. This made it much easier than might be the case in some other systems to validate and check consolidated data.

Users quickly produced analyses showing data both from each company and consolidated across all companies. It was also easy to integrate data for all companies into standard grouping structures designed by management.

A particular advantage of IFP was the ease with which sales and P&L data could be combined in a single database using flexible importing procedures that could accept data from files created by a variety of host systems. The process involved creating simple templates that were populated by the host system using simple queries (e.g. SAP, Navision). Data from these templates were imported directly into the relevant IFP databases.

Another advantage was the ease of applying mapping tables that converted one company’s cost centre, account and product coding into equivalent coding for the master company. In practice these mapping tables require a lot of fine tuning through several stages and the ease of creating multiple simulations of converted databases was found to be particularly useful.

In many cases, the ability to simulate mapped and consolidated data in IFP databases before attempting to populate local sales and general ledger databases provided a means of avoiding many errors and misjudgements in less flexible host systems.