Cross-selling is a leading source of post-transaction revenue synergies, requiring deep commitment and understanding of the opportunity and how to execute on it.

cost synergies are more straightforward to estimate than revenue synergies and often pay off quickly after Day 1.

capturing revenue synergies is essential to ensuring that transactions meet shareholder expectations.

cross-selling—delivering products and services traditionally sold to one set of customers to another set of customers—is a powerful way to realize revenue synergies.

On average, the gap between goal and result is approximately 20 percent, and capturing the majority of synergies takes three to five years

the “six Cs” discussed in the coming pages—that can provide a strong sense of the cross-selling opportunity a merger represents and increase the odds of capturing the opportunity

Complementarity. How well do the companies’ accounts, products, and services complement one other?
Connection. Do we have strong customer relationships to build on?
Capacity. Can the salesforce focus on cross-selling?
Capability. Does the salesforce have the skills for cross-selling?
Compensation. Does the company provide the right incentives for cross-selling?
Commitment. Is the company committed to cross-selling?

The organizations that focus systematically on more of these six core dimensions outperform those that focus on one or none by more than 20 percent

While M&A teams can generally evaluate overlap in customers or products, they tend to overestimate the potential complementarity of products.

The difference between having a strong relationship with the account and with the specific buyer can have significant impact on success.

Even with a strong relationship, sales leaders need to understand the new product’s relevance to decision-makers and build credibility and trust in the new space.

Creating the right focus requires careful orchestration and consideration of precise activity during the launch.

compensation alone will not achieve results. Success requires coupling a well-calibrated compensation plan with the right recognition programs.

Nonmonetary incentives are also critical to spurring sales people to make cross-selling a priority.

commitment has the highest correlation with overall program success among the six Cs.

the ability to make early progress on cross-sell initiatives builds a sense of momentum.