More information: https://flevy.com/browse/flevypro/post-merger-integration-pmi-revenue-synergies-3953 Stiff market competition, expansion into new territories, product portfolio extension, and gaining new capabilities are the prime reasons why more and more organizations are seriously looking into the prospects of—and carrying out—Mergers and Acquisitions (M&A). A large number of M&A deals take place annually around the globe, and Revenue Synergies are a decisive factor in closing such deals. However, identifying precisely where these Revenue Synergies lie and then capturing them isn’t as easy as it sounds. This deck provides a detailed overview of the 7 guiding principles that help organizations capture maximum value from Post-merger Integration (PMI): 1. Source of Synergies 2. Leadership Ownership 3. Customer Insight-driven Opportunities 4. Salesperson Driven Strategy 5. Ambitious Targets and Incentives 6. Sufficient Support 7. Performance Management Understanding these sources of value provides the leaders a head start on capturing the value and outstripping competition. The slide deck also includes some slide templates for you to use in your own business presentations.

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OK, the Merger’s Done. How Do We Secure the
Promised Revenue Synergies?
Contributed by Mark Bridges on October 8, 2019 in Management & Leadership, Strategy, Marketing, & Sales
Post-merger Integration
Training
131-slide PowerPoint presentation
Post Acquisition Integration
Strategy (Post Merger
Integration - PMI)
79-page PDF document
Post Merger Integration (PMI)
Best Practice Framework
28-slide PowerPoint presentation
Change Management in Post-
merger Integration (PMI)
24-slide PowerPoint presentation
Stiff market competition, expansion into new territories, product portfolio extension, and gaining new capabilities are the prime reasons why
more and more organizations are seriously looking into the prospects of—and carrying out—Mergers and Acquisitions. However, only a few
M&As achieve their desired revenue objectives.
Revenue Synergies are a decisive factor in closing such deals. However, identifying precisely where these Revenue Synergies lie and then
capturing them isn’t as easy as it sounds.
A McKinsey study comprising of 200 M&A executives from 10 different sectors revealed that all the respective organizations of the
respondents remained short of achieving their Revenue Synergy targets (~23% short of the target on average). Securing Revenue

2. 10/16/2019 OK, the Merger’s Done. How Do We Secure the Promised Revenue Synergies? | flevy.com/blog
flevy.com/blog/ok-the-mergers-done-how-do-we-secure-the-promised-revenue-synergies/ 2/12
Synergies is a long-term game. Studies reveal that the companies that succeed in securing
Revenue Synergies achieve the target in or around 5 years.
Leaders aspiring to achieve Revenue Synergies should first clarify the objectives from and the
schedule of the revenue synergies, lay out the organizational priorities and go-to-market
strategies, remove obstacles from realizing value, and gain across the board readiness and
commitment for the initiative. Organizations that are most successful in securing revenue
synergies pay close attention to these 7 guiding principles during the Post-merger Integration
process:
1. Source of Synergies
2. Leadership Ownership
3. Customer Insight-driven Opportunities
4. Salesperson Driven Strategy
5. Ambitious Targets and Incentives
6. Sufficient Support
7. Performance Management

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These 7 guiding principles to capturing Revenue Synergies are critical for effective integration of two firms after a merger and
unlocking potential benefits from the deal. Let’s discuss the first 3 principles in detail now.
1. Source of Synergies
The inability of the leadership of the acquiring company to spot major sources of revenue that integration brings in results in losing significant
pools of opportunity and failure of M&As. Realizing Revenue Synergies demands a thorough methodology to ascertain and qualify revenue
prospects along markets and channels, Go-to-Market Strategies, and developing commercial capabilities. This entails:
Evaluating customers and markets, selling offerings of the combined firms utilizing existing and additional channels, and adequately
training and rewarding the sales teams.
Coming up with innovative new products and bundles utilizing combined R&D capabilities.
Sharing best practices and commercial capabilities that mergers offer.
2. Leadership Ownership
Organizations that accomplish their Revenue Synergy objectives guarantee that their top management and employees commit themselves
fully to the initiative from the onset. They identify potential value pockets from the integration, examine the assumptions about securing
value, and get them endorsed by the senior management and front-line staff. The potential Revenue Strategies are regularly evaluated by
inter-departmental experts.
3. Customer Insight-driven Opportunities
Accurate estimation of Revenue Synergies demands top-level estimates—assumptions on market share gain, revenue enhancement, or
improved penetration—alongside comprehensive bottom-up customer insights, and evaluation of customer relationships. Other important
elements to consider include analyzing the offerings being offered to customers, discerning other potential products and services required by
the customers, and assessing the ability of the sales team and brands in terms of the potential they offer to the clients.
Interested in learning more about the other guiding principles of securing PMI revenue synergies? You can download an editable PowerPoint
on Post-merger Integration (PMI): Securing Revenue Synergies here on the Flevy documents marketplace.
Are you a Management Consultant?
You can download this and hundreds of other consulting frameworks and consulting training guides from the FlevyPro library.
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Post-merger Integration
Training
131-slide PowerPoint presentation
Post Acquisition Integration
Strategy (Post Merger
Integration - PMI)
79-page PDF document
Post Merger Integration (PMI)
Best Practice Framework
28-slide PowerPoint presentation
Change Management in Post-
merger Integration (PMI)
24-slide PowerPoint presentation
Post-merger Integration (PMI):
IT Integration Framework
26-slide PowerPoint presentation
Post-merger Integration (PMI):
Specialized Issues
25-slide PowerPoint presentation
About Mark Bridges
Mark Bridges is a Senior Director of Strategy at Flevy. Flevy is your go-to resource for best practices in business management, covering
management topics from Strategic Planning to Operational Excellence to Digital Transformation (view full list here). Learn how the Fortune
100 and global consulting firms do it. Improve the growth and efficiency of your organization by leveraging Flevy's library of best practice
methodologies and templates. Prior to Flevy, Mark worked as an Associate at McKinsey & Co. and holds an MBA from the Booth School of
Business at the University of Chicago. You can connect with Mark on LinkedIn here.
View all posts by Mark Bridges →

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