I'm nearing close on an acquisition and would value feedback from CEO's who have acquired businesses and implemented new ERP systems. I've decided a new ERP system is a must - the question is really around the timing of the implementation. I'm weighing the pros / cons of 1) doing the implementation on day 1 and completely cutting over to the new system when I take over, or 2) sticking with the existing systems and processes that the company is accustomed to, and then doing the implementation down the line (perhaps after the seller is transitioned out). On the one hand, as this is an asset sale, I am starting with a clean slate anyways, and since I know a new ERP is coming, why not do it ASAP. On the other hand, the announcement that the business is sold and a new owner is coming in will likely be a big shock to the system, so shouldn't I do everything I can to keep everything else about the day-to-day "business as usual" for the employees? Thoughts?
Additional context:
- manufacturing business, so inventory tracking is a big piece of this (which is currently non-existent)
- currently on quickbooks for accounting and a mish-mash of other systems for quoting, work orders, job status tracking
- 6+ month seller transition
- 3 primary users/inputters of the ERP system (although everyone in the company will be impacted with changes)
Thanks in advance
As far as the implementation, the new system is only as good as the fundamental system now in place (automated or not). Do hourly workers now measure their job-by-job or product-by-product labor on the shop floor? Other than bills of materials, does the business have documented machine routings and tooling sequences? Is overhead capitalized within inventory valuation? Most likely some of these answers are "no." If so, your ERP implementation will be a blend of "new system" and creating the underlying infrastructure. That calculus typically results in a costly disaster. Make sure the infrastructure is in place or fully planned out prior to system implementation. Lastly, I would suggest you use a third party systems advisor who is independent from the company that is selling you the ERP system. It would be money well spent.