Does anyone have experience in ERPs?
January 24, 2024
by a searcher in Barcelona, Spain
I am evaluating the possibility of acquiring a company that owns an ERP for a specific sector. They do integrate from production to finance and admin. I'd like to connect with someone that knows about the business and learn what are the main red flags I should look for prior to signing an LOI.
from Western Illinois University in St. Louis, MO, USA
Things to consider/Red Flags: Reasons Behind Customer Loss: Even a few lost customers can be concerning due to the substantial effort and cost involved in switching ERP systems. It's essential to verify the reasons behind any customer losses, as these could point to significant issues within the ERP system or its implementation. Addressable Market Constraints: Given the high switching costs, expanding by converting existing ERP users is challenging. Focus on the potential to attract businesses that are currently operating without an ERP system. Technological Robustness and Regulatory Compliance: Importantly, for a sector-specific ERP, check if there are any impending regulatory changes that the system may struggle to accommodate. Inability to adapt could severely limit the system's viability.
from Mahatma Jyotiba Phule Rohilkhand University Bareilly in Denver, CO, USA