M&A in technology | Bath & Company

The appetite of the technological industry for growth -oriented range agreements has been clear. But higher interest rates and changes in the way technological companies are appreciated have now considerably changed the rules of the game for technological scope agreements, and companies must modify their synergies approach. The debt clauses and the emphasis on margins and growth (compared to growth) mean that technological buyers must pursue significant cost synergies even in scope transactions that have a heavy income synergy thesis.

There are challenges to capture income synergies, such as product integration and generation of cross -selling synergies (see “Tech M&A: The new rules for reach offers»). But it is even more intimidating while reducing costs. Success requires a change of mind to focus on improving productivity. Here are the tactical movements in four key areas.

• Sales. Companies must maximize the productivity of sales income throughout integration. It starts by equipping representatives on day 1 for crossed synergies, and it requires supporting Salesforce with sales games, better prospects and AI tools to help them sell more with less effort. The generative AI has transformed what is possible in marketing initiatives, but few companies have achieved its full potential.
• Product. Companies rightly hesitate to reduce engineering spending, but they can quickly develop an integrated product roadmap between the two companies and aggressively reduce the costs of overlapping products. Another decision is investing in co -pilot coding for new efficiency gains.
• Post-sale. Integrations are an opportunity to rethink the support and success of customers to improve the results at a lower cost thanks to integrated account coverage and automated support.
• General and administrative expenses (G&A). There are always savings of scale in G&A, but integration provides a unlocking moment to use the automation of AI and processes to completely rethink these costs and browse massive savings (25% or more).