As the pace of business continues to accelerate, strategic combinations have become the weapon of choice for gaining market share, expanding product lines, garnering operational and financial efficiencies, and ultimately delivering increased shareholder value. However, the challenge lies not in these merger deals themselves, but in the post-deal operational execution, since that's where their value is actually created.

1. Sales
Considerations
During Mergers
WHITE PAPER

2. Sell Smarter. Manage Better.
Sales Considerations During Mergers
INTRODUCTION
As the pace of business continues to accelerate, Nowhere is this execution pressure felt more than in
strategic combinations have become the weapon of the combined sales organization once two companies
choice for gaining market share, expanding product have been put together. This is due to the fact that
lines, garnering operational and financial efficiencies, the sales team is where the three primary operational
and ultimately delivering increased shareholder value. objectives of any merger come together most
However, the challenge lies not in these merger deals strikingly:
themselves, but in the post-deal operational execution, • Revenue Synergies
since that’s where their value is actually created. • Cost Synergies
• Cultural Compatibility
Unfortunately, with an overall failure rate of between
50% and 70%, post-deal integration is not only where Organizations that deliver well on the above
the value is created, but also where the failure occurs. objectives are the ones that are the stuff of business
Everything is under a microscope, and the scrutiny is legend, particularly when the further challenges of
further compounded when public companies have to globalization and economic turbulence are added
answer to Wall Street and industry press. to the mix. It is in exactly this environment that
the application of sales methodology, process, and
technology reaps its biggest benefits.
REVENUE SYNERGIES
The most important thing to demonstrate post-merger is that Look at the impact that can be made by having at least 50% of
revenue synergies promised during merger announcements your sales teams using a leading sales methodology like TAS,
can be made a reality. The execution challenge here lies in shown in the figure below. These gains in sales efficiency and
the need to get sales teams from two organizations selling reduced turnover can help improve revenue performance
efficiently with an expanded product or services set. And and make the revenue synergies demanded by stakeholders
that’s where having a strong sales methodology is key. a reality.
Sales methodology provides the insight and skills that sales
70%
teams need, especially in times of change. Rather than hope
that sales people understand how to approach accounts to 60%
deliver the new message and excitement of new product
and services, you can have confidence that they’re working 50%
strategically, qualifying opportunities correctly, understanding
40%
the ever-changing political landscape of their clients and
prospects, and driving to close as quickly and efficiently as 30%
possible.
20%
As proof of this need, consider that only half the companies 10%
in a TAS Index survey had 50% or more of their sales
people achieving quota. This deficiency and others can 0%
be significantly improved by the application of sales <50%
More than 50% More than 25% More than 50% More than 50%
of sales force sales force opportunities proposals
methodology, which boosts quota achievement, reduces >50%
achieved quota turnover result in a sale result in a sale
turnover, and increases the close rate of deals in the pipeline.
Figure 1: Benefits of Sales Methodology
Share this White Paper! Copyright © The TAS Group. All rights reserved. 1

3. Sell Smarter. Manage Better.
Moreover, using technology to reinforce methodology
adoption and usage is an important factor in driving post- No sales effectiveness solution
The TAS Effect Methodology, Process, Integrated with CRM
merger revenue. It’s not just about the ROI on your CRM
investment; it’s really about getting the revenue productivity 70%
out of your teams. Our research shows that CRM usage
60% +88%
improves from a dismal 33% without methodology
integration, to 65% with a proven and well integrated 50%
+155%
methodology. Likewise, integration improves the adoption 40%
and use of the methodology itself, which moves from 14% to
38% as a result. 30%
+20%
20%
COST SYNERGIES
-33%
10%
Right behind the intense revenue pressure that accompanies
0%
mergers is the need to reduce expenses through cost Quota Salesforce Qualified Sales
synergies. This typically means one thing: get more done Achievement Turnover Opportunity Proposal
Close Rate Close Rate
with fewer resources. Eliminating redundancies in the
combined organization often results in reduced support staff, Figure 2: Impact of Methodology, Process and CRM
and sometimes means fewer sales people as well. Added
pressure comes from the inevitable voluntary turnover
that accompanies most mergers. And yet, this leaner sales
organization is expected to produce the revenue synergies And while the benefits of sales methodology and process
discussed above. How can this be accomplished? In addition are well-documented, their ongoing reinforcement is crucial
to ensuring that your team has the methodology skills if the full ROI is to be achieved. Obviously, management
needed to tackle a more involved sale, having a rigorous sales buy-in for these initiatives is a key to their success, but even
process moves from nice-to-have to absolutely critical. with management fully behind their implementation, sales
methodology and process have a dismal record without
Without a defined and measured sales process in place, the added support of technology. In fact, 87% of skills
existing sales talent will be slower to move through the sales learned during training are lost within the first month,
cycle for additional products and services that are now part so reinforcement is necessary if the training is to have a
of their portfolio. Moreover, management will have a difficult meaningful impact.
time accurately forecasting their performance during this
critical time of scrutiny by the stakeholders that approved the
merger transaction. Equally daunting, how do you accurately
measure your pipeline to ensure that sufficient business is
available to make your goals?
The answer lies in a well defined sales process, supported by
strong technology to continuously reinforce and measure that
process. How do we know this? The TAS Index survey shows
the dramatic improvement that the combination of sales
methodology, process, and integration with CRM can provide:
88% improvement in quota achievement, 33% reduction in
sales force turnover, a 20% increase in opportunity close rate,
and a staggering 155% increase in sales proposal close rate
(see Figure 2).
Share this White Paper! Copyright © The TAS Group. All rights reserved. 2

4. Sell Smarter. Manage Better.
Achieving reinforcement means more than beating on Having a proven, integrated methodology helps solve this,
people to use what they’ve learned. Instead, using elearning and has the added benefit of enforcing the sales process as
capabilities and integrating sales methodology and process well. Combined with the right capabilities, this means your
into your CRM system are a proven way to not only reinforce sales velocity not only improves, but enables you to finally
concepts, but get the ongoing measurement that allows measure your pipeline and forecast objectively. Rather than
management to offer focused coaching to their sales teams relying solely on armies of analysts with spreadsheets and a
(see Figure 3). For example, the Dealmaker Virtual Learning healthy dose of intuition, solutions like Dealmaker Predictive
System is an on-demand video learning system that allows Sales Analytics become an alternative. It will not only give you
sales people to refresh themselves on key methodology the impartial numbers, but provide insight and coaching hints
concepts on a just-in-time basis, watching small, highly that allow you to drill down from your newly accurate forecast
concentrated segments to help them through a particular and pipeline into individual deals and sales people, so you can
element of a deal. apply coaching where it matters most.
This capability is also invaluable when it comes to reporting
Blended Learning and Application to senior management and the board on performance
for Sustained Sales Effectiveness against the revenue and expense objectives laid out for a
merger. Imagine the ability to present your forecast and
Automated Reinforcement Events pipeline analysis, and sales cycle performance, all without
having to spend a single minute with a spreadsheet or analyst
(see Figure 4). Only the combination of an integrated sales
SALES EFFECTIVENESS
methodology, sales process, and technology integration with
Area of Missed Opportunity your CRM system can give you these results.
Loss of Sustained Value
Traditional Learning
Effectiveness Curve
Blended Learning
Online Main Effectiveness Curve
Classroom Classroom
Intro Event
TIME TIME
Figure 3: Impact of Elearning on Retention
Likewise, your sales process is at risk of rapid degradation
without the support of technology. For years, the answer to Figure 4: Dealmaker Predictive Sales Analytics
this has been CRM but as noted earlier, adoption has been
a problem.
Share this White Paper! Copyright © The TAS Group. All rights reserved. 3

5. Sell Smarter. Manage Better.
CULTURAL COMPATIBILITY
The other important objective in any merger is to integrate Having good performance measurement and coaching tools
the cultures of the two companies being combined, and this also cuts through the bluster that can creep in during these
is a particular challenge in sales. There is inevitable territory merger transitions. We’ve all seen this situation where fear of
overlap, and often there is also overlap in the product mix, change leads sales people to overstate or even manufacture
leading to natural tension between sales teams. In some performance claims. Using an unbiased system to help
cases, there is outright hostility when former marketplace adjudicate these cases, provide coaching, and as necessary
competitors are merged. aid management in making organizational change decisions
is something that our customers have told us they rely on
While there is no substitute for good management in these during times when emotions run high. And where you have
situations, having a common sales methodology and process strong performers that are at risk of resigning and heading
has proven very helpful with a number of our customers. for greener pastures, it’s important to note that in addition to
The simple reason is that the standardized approach, making them more effective, the use and reinforcement of
common language and steps, and the use of automation methodology can reduce sales force turnover by 33%.
that methodology, process, and technology provide helps to
bridge cultural, organizational and time zone gaps.
SUMMARY
Mergers offer tremendous opportunity with a high ingredient then becomes management’s willingness
degree of difficulty. Sales organizations have to to engage in and truly embrace an initiative that makes
perform to deliver on higher revenue expectations these benefits a reality in their organization. The TAS
with reduced resources, and do so while creating a Group stands ready to be a partner in these initiatives,
positive combined culture. and help deliver on the promise that a merger in your
company holds.
The positive impact that a proven sales methodology,
process, and technology can have on these challenges If you wish to find out more, please contact us at
is well understood and documented. The missing info@thetasgroup.com.
Share this White Paper! Copyright © The TAS Group. All rights reserved. 4

6. ABOUT THE TAS GROUP
The TAS Group helps sales professionals sell smarter and manage better. Through a unique combination of deep sales
methodologies and intelligent software applications, customers achieve measureable results including increases in win
rates, deal sizes and qualified opportunities, as well as decreases in sales cycle length. According to the Aberdeen Group,
customers of The TAS Group realize 21 percent greater attainment of sales quotas.
Dealmaker® intelligent software is the engine driving revenue growth and sustained adoption of improved sales
practices.
The TAS Group has helped more than 850,000 sales professionals in more than 65 countries, from small private
companies to market leaders. For more information visit http://www.thetasgroup.com and read the dealmaker365 blog
at http://www.dealmaker365.com.
ABOUT DEALMAKER
Dealmaker software from The TAS Group delivers real-time opportunity and account management, intelligent
deal coaching, accurate sales forecasts, smart playbooks, self-paced learning, and predictive analytics, resulting in
measurable sales growth.
Dealmaker can be delivered as a standalone application or can be integrated with Salesforce CRM, Microsoft Dynamics
CRM, Oracle CRM On Demand, Oracle’s Siebel CRM and SAP CRM, or with any third party software application through
the Dealmaker API. For more information visit http://www.thetasgroup.com.
Copyright © The TAS Group. All rights reserved. This briefing is for customer use only and no usage rights are conveyed. Nothing herein may be reproduced in any form without written permission of The TAS Group.