Mergers & Acquisitions in 2022

What's the story? Mergers and acquisitions 2021 was a record year for M and A activity globally representing more than 5 trillion in volume. What we know is that the activity remains strong with technology and health care leading the way. The acquisition has taken place and now the work begins. Companies must realize the synergies of the acquisition and the sales organization is a critical component to success with cross selling and the introduction of new products and services across a larger customer base leading the way. But it's not as easy as it seems, and we know that only 20% of organizations realize the cross selling expectations from MA. There is a fundamental alignment that must take place first across the sales organization to stem undesired attrition, disseminate false assumptions, and get everyone on the same page and comfortable with its coming sales. Role definition, compensation alignment, organization integration and cultural alignment are top challenges for organizations once the merger and acquisition has taken place, resulting in unintended consequences that compromise the achievement of OF M and A outcomes. M and A activity has been strong 36% of organizations in our study have been involved in a merger or acquisition in the past 12 months, and that number was even higher in 2020. Leading the way is technology and healthcare. Role definition and incentive compensation alignment top the list. Harmonizing incentive compensation and defining and aligning roles across integrated organizations are top challenges for 54% and 53% of companies, respectively. Sales organization integration and culture also top the list. Integrating the sales organization and aligning on cultural differences are top challenges for 47% and 31% of companies, respectively.