In the high-stakes world of mergers and acquisitions (M&As), private equity firms often juggle the complexities of aligning diverse goals, integrating teams and merging corporate cultures — all while working to keep the revenue engine humming. The margin for error is razor-thin, and sales teams are typically on the frontlines, tasked with delivering results amid the turbulence.
And recent conversations with private equity leaders have illuminated key challenges many face in achieving sales excellence during these transitions. From Chief Revenue Officer (CRO) turnover to declining sales rep performance, pricing pressures, and disappointing win rates, the hurdles are both numerous and nuanced.
In this piece, we will cover what portfolio companies are struggling with most — and provide some time-tested paths toward maximizing sales performance and meeting growth objectives.
4 KEY CHALLENGES FACING SALES TEAMS DURING M&As
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CRO Turnover and Misalignment
The role of a CRO is critical, especially in the assimilation following a merger or acquisition. Yet, many firms experience frequent CRO churn, which disrupts continuity and weakens sales leadership. Another recurring issue is a mismatch between a CRO’s skillset and the unique demands of the new organization. Too often, the problem they are tasked with solving does not align with their strengths or past experience, leaving a gap in strategic leadership of commercial operations.
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Sales Rep Attainment
Achieving sales quotas has become a tall order. A leading private equity firm found that between 2021–2023 only 37.5% of their sellers achieved 90% or more of their quota targets. While some reps thrive in an M&A environment, many struggle, pulling overall team performance down. Private equity leaders must identify the most effective investments for uplifting underperformers or else reallocate resources elsewhere.
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Pricing Pressure vs. Pricing Power
Price increases have averaged about 8% according to BLS to upwards 12–13% (according to same PE firm) over the last three years, but this trend is leveling out. Companies have been able to “justify” price increases under the inflation economic conditions that have engulfed the U.S. economy. As pricing power wanes, firms can no longer rely on pricing adjustments to mask revenue shortfalls. Instead, the focus must shift to demonstrating and delivering clear, differentiated value.
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Win Rate Volatility
Win rates often serve as a barometer of sales health. In many sectors, win rates are slowing, raising questions about pipeline quality, lead qualification processes and sales team effectiveness. Are there fewer at-bats? Or are teams failing to close at the same rate? Sales leaders should assess the true quality of their leads and how well their sales force is prepared to take them on before they can begin to address these issues.
A PROVEN PATH TO SALES EXCELLENCE
Amid these challenges, Mereo LLC offers a blueprint for achieving sales excellence during M&As. The solution lies in two critical focus areas:
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Strategy and Due Diligence Support
Successful integration begins with a solid foundation of strategic alignment:
- Joint Value Proposition: Develop a compelling and unified value proposition that speaks to buyer needs and differentiates your offering.
- Competitive Positioning: Identify and articulate your differentiated edge in the marketplace.
- Solution Message Alignment: Ensure all teams are on the same page with a clear, resonant message for buyers.
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Sales and Marketing Assimilation
Unifying sales and marketing efforts post-merger or -acquisition is essential to driving synergies and results:
- Rationalized Sales Process/Methodology: Standardize approaches to selling and buyer engagement.
- Sales and Customer Success Enablement: Equip teams with the tools, training, and insights they need to perform.
- Cross-Sell Plays: Leverage the combined portfolio to unlock new revenue opportunities.
- Joint Buyer Profile / Personas and Buyer Journey: Map out the buyer’s path to purchase with insights from both organizations.
- Marketing Campaigns: Launch initiatives that energize the combined brand and drive demand.
EQUIP YOUR TEAMS WITH TOOLS FOR SALES EXCELLENCE IN THE YEAR AHEAD
Private equity leaders must view sales force support as a strategic investment, not a checkbox item. Sustainable revenue growth is the most effective lever for value creation. By addressing the core challenges with tailored strategies and enabling teams with unified processes and tools, portfolio companies can accelerate performance and drive growth — even during M&A transitions.
🤝 At Mereo, we specialize in helping sales teams thrive during M&As through proven frameworks and tools. Book a 30-minute call to talk through the issues your portfolio companies are facing.
👉 Looking for tools to equip your sales teams with to achieve sales excellence in the year ahead? Look to the Mereo Revenue Accelerators guide, covering the 10 essential sales skills every salesperson needs to master for success.
Your sales teams are capable of extraordinary results — but they need the right guidance and support. Partner with Mereo to navigate your next M&A with confidence and deliver unparalleled value to your portfolio.