This is going to be a series on M&A (Merge and Acquisitions) and the importance of evaluating the use of Salesforce and CPQ (or a related tool) as part of the tech stack during the due diligence process.

Today, Salesforce is used by companies of all sizes, from small startups to large enterprises. As a result, it has become a vital component of any company’s tech stack, playing a key role in streamlining operations and enhancing customer relationships. Salesforce can hold everything from marketing to billing processes, integrating various functions such as sales management, customer service, and analytics into one cohesive platform.

When acquiring a company, particularly if the acquiree already has a CRM, it is important to consider how the Sales processes between the two systems will be merged. Will the flows be brought over one by one? Will all of the data be migrated? This series will cover these topics at length.

Another aspect that I have seen in my experience that gets often ignored is the Quote to Contract/Order or Quote to Cash structure, which plays a vital role in the overall efficiency of business operations. If either party has a tool like CPQ (Configure, Price, Quote) and/or Billing, this will have a hefty impact on the merge itself, as these tools hold the crux of the bookings and possibly billings data that will be needed to keep those deals moving forward.

Lastly, having a tool like CPQ in place at either party can impact the integration process that must take place post-acquisition. Depending on the state of the tool, it could result in a small or heavy lift to do the migration.

Valuations will be part of any deal, and if a company already has a streamlined process for handling bookings, then it will be possible to leverage that data to inform how the company is doing with minimal overhead.

Understanding your goals and plans for handling the acquired company will play a role in these evaluations. I have seen examples of tracking ARR, building a new customer base, or upselling existing accounts.

This series is expected to cover the following topics:

• Pre-Acquisition: Due Diligence on Salesforce and CPQ
• Integration Challenges and Opportunities
• Risk Assessment and Mitigation Strategies
• Example of Challenges