Merger and acquisition (M&A) deal volume reached an all-time record high in 2016 with nearly 50,000 transactions exceeding $3.5 trillion in value. Yet, 83% of these deals will fail to boost shareholder returns. In fact, achieving a superior revenue engine has been the exception rather than the rule. Only three in 10 M&A transactions generate growth in excess of pre-merger rates.
With most failing to achieve revenue synergy, executives embarking on a merger need a deeper understanding of common sales force integration errors and success factors. There are three big sales-related errors that most dramatically undermine integrations: sales force design, implementation and risk management:
- Failure to design and commit to the necessary change in growth strategy, channel mix and sales organization structure.
- Lost momentum, poor decisions, and insufficient coordination during implementation planning and rollout.
- Too much and poorly managed disruption
Integrate your sales forces in a way that maximizes profitable revenue while minimizing the transition risks and costs.
Download these insights from ZS for key factors to achieve successful M&A and sales force integration. Integrate your sales forces in a way that maximizes profitable revenue while minimizing the transition risks and costs.