Maximizing Value through Sales Synchronization in Mergers and Acquisitions

Mergers and acquisitions are common strategies for companies looking to grow and expand their market presence. While these deals can offer many benefits, including economies of scale and access to new markets, the key to creating true value lies in prioritizing sales growth post-merger.

One example of successful integration through a merger is the partnership between a small regional savings bank in southeastern Massachusetts and a financial technology (fintech) startup based in Boston. The bank, facing competition from digitally savvy rivals, took a minority stake in the fintech company to enhance its digital offerings and attract tech-savvy customers.

The merger allowed the bank to quickly integrate the fintech company’s technology into its services, attracting new customers and expanding its profit margins. On the other hand, the fintech company gained access to capital and an established customer base, accelerating its technology development and scaling efforts.

However, the challenge for integrated companies is not the intention of growth but the delay of it. Many companies tend to prioritize operational integrations over sales growth post-merger, which can hinder the overall success of the deal. To maximize the value of a merger, companies should focus on defining synergies between their products and services and prioritize sales synchronization and cross-selling plans.

Another example of the importance of sales synchronization in mergers is the case of a financial planning and investment company in upstate New York that acquired insurance agencies to cross-sell its services. Despite focusing on cost benefits and operational integrations, the company saw immaterial gains in financial planning revenue and a decline in insurance sales.

To create real value from mergers and acquisitions, companies must prioritize sales synchronization and cross-selling plans. By defining workflows pre-closing and aligning sales teams, companies can uncover cross-selling opportunities and maximize revenue growth post-merger.

In conclusion, mergers and acquisitions can offer significant benefits to companies, but the key to creating true value lies in prioritizing sales growth post-merger. By focusing on sales synchronization, defining synergies, and aligning sales teams, companies can maximize the success of their deals and drive top-line growth.