How To Execute Your Go-To-Market Strategy Post M&A

How you execute your go-to-market strategy post M&A depends entirely on the game plan you’ve developed for maximizing synergies. Most enterprises develop an outline for the roadmap they’ll adopt during the early stages of negotiating the merger or acquisition.

By the time the deal concludes, they know exactly how to execute their go-to-market (GTM) strategy. Particularly if that’s the objective behind the transaction. Despite the detailed planning you undertake, successful execution depends on how well the integration progresses.

Keep in mind that an incredible 70% of M&As fail primarily due to ineffective integration, resulting in missed synergies. Dealmakers were unable to extract maximum value from the transaction. So, what steps should you take to ensure your approach works as planned?

Here’s a quick overview of the key aspects to work with when executing on your goals.

Understand that Your Success Hinges On the Key Component – Human Resources

Experienced executives understand that the best action plans are largely ineffective without the right blend of people and skill sets. Ultimately, it comes down to having the right personnel on board in key roles. The team should be well coordinated and committed to achieving its goals.

This coordination poses a challenge after an M&A, as it requires unifying two teams from different companies. Don’t make the critical mistake of assuming integration will be streamlined just because they work within the same vertical.

Nor can you assume that they will know how to move forward with the go-to-market strategy. It is up to the management to create an efficient and well-integrated customer-facing organization that can maximize sales and revenues. The first step in the right direction is to understand the culture divide.

Expect to encounter resistance from the original team in the acquiring company and the incoming team from the target company. Merging the two companies is easier than creating a new culture that includes aspects from both participants in the merger.

You’ll need to invest time and resources into the culture integration. That’s how you’ll avoid delays in capitalizing on the projected advantages and synergies from the M&A. Start by creating an expert human resources department that you’ll dedicate to handling employee concerns.

The most effective approach to accelerate value creation is to maintain transparent and open lines of communication. Establish a culture where workers receive information directly from their supervisors, rather than through social media or informal channels.

Involve employees at every step, starting with information about the upcoming M&A, vision, and the go-to-market strategy. They should know exactly where they stand and how they can contribute.

Maintaining Employee Engagement

Organize Training Programs

When working out how to execute your go-to-market strategy post M&A, your first move should be implementing training sessions. Each session should be comprehensive and designed to provide end-to-end information, starting with the product portfolio and its features.

You’ll also educate employees on sales strategies, target customer base, location, and distribution channels. Next, you’ll establish a shared corporate culture and value-driven mission statement. Don’t overlook the fact that you’re integrating two distinct sales frameworks and go-to-market approaches.

Supervisors and management executives must evaluate each employee’s skill set and capabilities before assigning roles that are a great fit. The more in-depth information employees have, the better equipped they will be to deliver on their goals.

Let’s say, the design team understands the target audience and its pain points. Accordingly, they are better positioned to develop products that meet market expectations. Then again, understanding how distribution channels work can be crucial when developing products that are easy to deliver.

On the other hand, if the marketing team understands how the products work, they’ll develop effective messaging to promote them. They can design advertising strategies accordingly. Additionally, have a robust framework in place where customer-facing teams provide regular updates to management.

The entire organization can review and analyze customer feedback to understand the benefits of the integration. They can also address shortfalls in real-time, which helps retain customers and their loyalty toward the brand.

Comprehensive training programs are particularly crucial if the M&A has been structured as an acquihire. The underlying objective of the transaction is to bring on board top-notch talent from the target company. Integration and coordination between the teams can become more challenging.

Your training sessions should focus on the big picture–a robust go-to-market strategy to serve more customers and accelerate growth.

Restructure Compensation and Incentives

Companies of all sizes and scopes typically have a detailed compensation structure in place for their employees. This structure usually includes a combination of salaries, benefits, and option pools. You’ll develop a fair and equitable plan that rewards the collaborative efforts of all employees.

In addition to setting common goals, you’ll also establish an incentive structure to encourage them to work together. Being transparent about restructuring the workforce post-M&A is also crucial. People should learn about layoffs, severance checks, and option pool frameworks from the management.

Keep in mind that storytelling is everything in fundraising and M&A. In this regard, for a winning pitch deck to help you here, take a look at the template created by Silicon Valley legend, Peter Thiel (see it here) that I recently covered. Thiel was the first angel investor in Facebook with a $500K check that turned into more than $1 billion in cash.

Remember to unlock the pitch deck template that founders worldwide are using to raise millions below.

Framing Unified Product and Service Portfolio

When you execute your go-to-market strategy post M&A, you’ll start by determining the product portfolio the company will offer. This portfolio will include products from both legacy companies, but after a thorough evaluation of their value proposition.

Next, you’ll work out how to design bundled deals and establish their pricing structure. If necessary, you’ll eliminate redundant products based on the results of the market opportunity analysis. Be sure you inform customers about the changes and offer them better and more affordable alternatives.

Don’t overlook short-term and long-term gaps that your products can fill. Take advantage of short-term synergies by marketing bundled deals at discounted prices. You can also offer quick product improvements thanks to the new IP and technology the acquired company brings in.

If you’ve developed disruptive offerings, now is a good time to announce them. The newly merged company will gain higher credibility by leveraging the value proposition for buyers.

Achieving Long-Term Goals

From the long-term perspective, reframing the product portfolio may involve challenges. Customers may not be as receptive to new products or features as expected. However, you can overcome this hurdle by allocating more resources to marketing and advertising.

The new narrative should focus on reassuring customers about the benefits of the improved GTM strategy. Your messaging should indicate how the M&A translates into better products, cost-effective distribution, competitive pricing, and efficient after-sales service.

Then again, your team might encounter technical, operational, and complexity issues with the new products they must manufacture. The solution is to double down on research and development efforts to address and eliminate these issues.

Be open to investing more resources in improved machinery, tools, and equipment to streamline the integrated production process. Don’t forget to offer more incentives to employees who can develop solutions to facilitate manufacturing and innovation.

That’s an essential aspect to remember when you execute your go-to-market strategy post M&A. Focus on adopting a growth-oriented approach, which is disciplined and based on a data-driven understanding of the key initiatives you’ll implement.

Refining Your Brand Strategy and Messaging

Your brand strategy and messaging should focus on reinforcing both legacy companies’ relationships with their customers. You need to address every aspect of the unified company’s branding, and it is not just about letterheads and email signatures.

You’ll need to restructure the brand logos, slogans, and ongoing marketing campaigns to project the improved strength and value. The merged company’s messaging should reflect both legacy assets and retain their brand value.

Your marketing strategy moving forward should resonate strongly with audiences and customers. The messaging you send across should present a unified vision and value proposition. It sets the tone for how customers, employees, investors, and other stakeholders view the newly formed company.

An enterprise company acquiring a smaller startup may choose to use its established branding. However, this strategy may result in losing customers who are already attached to the upcoming startup. Instead of diminishing the smaller company’s value, consider integrating the two.

Adding the enterprise brand as a tagline in a smaller font while retaining the acquired brand name is an option. The acquired company retains its customers, market standing, and autonomy while benefiting from the resources the better-established company provides.

Ultimately, this decision hinges on how well-known the acquired company is and its customer loyalty. You have the option to leverage its brand value and utilize it for a partnership that benefits both companies.

Knowing how to define your go-to-market strategy is a crucial skill. You’ll need it when pitching to investors or connecting with potential buyers when working out your exit strategy in an M&A. If you need guidance on how to handle it, check out this video I created.

Streamlining Sales Channels and Distribution Strategies

Following the merger, both partners will likely have distinct sales channels catering to specific customers or locations. Your new go-to-market strategy should include the ideal combination of channels to continue serving them. And that includes leveraging direct, indirect, and hybrid models.

Examine the channels to assess their effectiveness by adding up revenues and customer feedback. You’ll fortify the ones that work well and repair or eliminate the ones that don’t. Track all changes you make and compare results by following key sales and revenue metrics.

You’ll also reinforce and refine existing marketing opportunities that are already generating robust revenues. Identify the customer segments that are crucial for both companies and dedicate a sales team to manage the highest-priority clients.

When developing new sales and distribution models or refining existing ones, you’ll work closely with the sales team. Get their inputs on how customers are likely to react to the proposed changes. Pay careful attention to the customer liaison personnel dedicated to the top clientele.

Review the products that customers are likely to purchase, and identify any potential issues with product complexity that could impact sales. Running detailed analyses and sales projections is crucial before implementing changes.

Your training sessions should include directives on how to convince customers and identify opportunities for upselling and cross-selling. Authorizing your team to speak on behalf of the company is a crucial strategy because it empowers them. You’ll encourage them to take ownership.

Adding incentives to the mix motivates personnel to work harder, serve customers more effectively, and drive sales. Remember to get inputs from the regional sales team to understand the existing company footprint.

At the same time, establish guidelines for engaging with customers. You can’t risk confusion among the teams due to overlapping pitches for similar products targeting the same buyers.

Maximizing Revenues and Profits

Financial synergies are another crucial aspect of a successful M&A. When working out how to execute your go-to-market strategy, you’ll set targets for revenues and margins. Tracking revenues will help you estimate the success or failure of the merger or acquisition.

Most companies make the critical error of focusing on cost synergies and the benefits of economies of scale. However, these metrics typically enable short-term analytics. They are not effective in tracking the success of synergy or estimating the value left on the table.

Dealmakers should estimate the short-term and long-term revenues they can potentially earn after the merger or acquisition. Don’t overlook this factor when you execute your go-to-market strategy post M&A.

In Conclusion

Developing and implementing an effective go-to-market approach after an M&A involves careful planning, starting with integrating the team. Next, you’ll ensure cultural alignment and consistent communication to ensure the team understands exactly what you’re trying to accomplish here.

You’ll organize training sessions to educate every department, ensuring the entire workforce operates as a coordinated unit. This is crucial to put together a robust product portfolio that serves customer needs. Next, you’ll align the sales and marketing programs to cater to the unified customer base.

Be sure to monitor progress and conduct data analysis to identify the areas that need improvement. Additionally, collaborate with customer-facing teams to gather real-time feedback and reviews. You’ll tweak your go-to-market strategy accordingly.

Ultimately, you must focus on minimizing churn rates and protecting revenue. When you’re ready to execute your go-to-market strategy post M&A, rely on thorough planning to address potential snags. Don’t hesitate to leverage technology and AI to support data gathering and informed decision-making.

You’ll shorten the time taken to capitalize on the merger or acquisition and derive value from the deal. You’ll also position the newly formed company as a leading player in the market, poised for success.

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