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| Every quarter John Henderson, President/CEO, allows a limited number of complimentary half-day consulting sessions for companies who have not used our services in the past 3 years. These half-day consulting sessions are always scheduled well in advance. To arrange a complimentary session, please call Karl Edmunds at (312) 558-4866 to determine availability. |
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Most acquisitions completed by manufacturers are done with the intent of integrating the acquired company into the existing business management structure-to capture cost efficiencies, operational synergies, and/or market synergies. From our experience, one of the strongest determinants of whether the acquisition delivers to the buyer's financial expectation is the integration of go-to-market strategies.
The most challenging aspect of the go-to-market integration is in the channel. At one extreme, acquiring companies (and their existing channels) often automatically assume that these channels will get access to the acquired products/services. At the other extreme, a "hands off" approach is used, leaving acquired products in their current channels. In either case, you lose the opportunity to capture real market synergies across the existing and acquired businesses.
We recommend a two-step approach to integrating acquired products into existing channels:
The first step consists of a channel fit analysis. Your existing channels are examined in the context of the acquired business. Do your existing channels call on the right customers? Do the channels have the capabilities to support the acquired business and continue to satisfy existing customers? If not, will your channels be able/willing to make the required investments to support the acquired business? The output of this step is a fact-based decision as to what portions of the acquired business are to be integrated into your existing channels and what portions require an alternative channel strategy.
The second step consists of a channel program audit. The channel program audit examines the pricing and programs offered to existing channels. Do these reflect the market requirement for the acquired product portfolio? Do they motivate existing channels to support the added products? What changes are required to optimize revenue/profit for you as well as existing channel partners? The outcome is a revised channel pricing/program matrix to deliver expected financial results for the acquisition without risking traditional business.
What are your most challenging sales channel problems?
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| October 21, 2010 |
| Professional Sales Channel Management |
Using proven management tools, frameworks and methods to prepare channel managers to drive sales and market share through indirect sales channels.
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