Whether companies are looking to defend and grow their market share, expand into new markets and territories, or diversify their product/service offerings, there is no limit to the benefits that successful mergers and acquisitions (M&A) can bring for each party.
But success doesn’t just happen when the contracts are signed and the deal is done — in fact, according to KPMG, a staggering 83% of mergers fail to boost shareholder return and, as a result, are deemed a failure. As one M&A leader commented, “The cost of money has never been lower, the competition for deals has never been higher, and revenue synergies are playing a more significant role in the acquisition rationale.” Though their importance may be growing, revenue synergies are proving elusive to capture.
So how can your organization guarantee a successful M&A? By investing in your greatest asset: your people.
Common Challenges Following M&As
Executives surveyed by McKinsey cited a number of areas of difficulty they’ve experienced post-contract signing:
- setting realistic targets,
- changing salesforce behavior,
- executing across functions,
- measuring financial impact, and
- getting the newly-formed organization to focus on the right things.
The common denominator among these challenges? Your people. Merging with an organization means more than just expanding into your market — it also means taking on an entirely new workforce and joining them with your current staff. Integrating cultures is key to enabling people to collaborate and cross-sell your products and services, and in ensuring the continuity of your business.
Realizing the Benefits of Your M&A
Lack of communication creates distrust and uncertainty in the workplace, leading to lower employee engagement levels and an inability to build transparency and trust across the merged entities. Addressing both of these can be the recipe for a successful merger — and Introhive can help.
Transparency can be a key stepping stone to building trust across employees. In merged organizations, information gets siloed and it becomes harder to identify point people in different accounts. Introhive provides invaluable insights into who knows who and into active client-side engagements. With the ability to be connected to multiple email exchange servers, Introhive provides a global view across merged organizations of key client engagements, regardless of company source.
Keeping your communications transparent can instill trust between diverse groups of employees by showing them they have connections in common and enabling them to collaborate and work towards a common purpose.
Realize Cross-Company Synergies
The data that Introhive mines and surfaces can underpin key account planning, inter-organization engagement, and inform the overall merger communication strategy and plan. How? By clearly highlighting where teams have synergies that can be leveraged and encouraged as soon as the merger has been completed.
Best of all, Introhive’s intuitive software doesn’t require a user to change the way they work in order to reveal relationship capital held across the companies. It is a light solution that can be used as a stepping stone to support the business and encourage people to integrate and collaborate.
Provide the Tools for Sales Success
The most effective and direct way to capture revenue synergies is to take each company’s products and sell them to new or existing customers, launch them in new geographic markets, or sell them through additional channels. Common stumbling blocks to sales success include failing to ensure that:
- the decision-maker at the target account is the same for both company’s products;
- sales reps have the knowledge, capacity, and incentives to sell the new portfolio; and
- leaders are fully committed to the effort.
Build your strategy with your salesperson in mind. Introhive can help identify where the strongest relationships exist across the combined employee network — not just the who is connected, but the overlap between connections across your two organizations. Introhive empowers sales teams to collaborate and use their combined efforts from day one to reach the right decision-makers and capture revenue synergy.
Introhive helps merged companies to engage employees and set the unified organization on a path towards a successful culture shift. Are you ready to take your merger to the next level? Request a demo of Introhive today and see just how our relationship intelligence automation platform can ensure a successful M&A process.