In the Aftermath - ' Facing the Battle ' (
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In situations where two competitors become one, solution providers may face an increased battle for sales or be dropped altogether.
"VARs definitely need to hedge their bets a little bit and not put all their eggs in one basket," cautioned Pang. "Clearly they need to hook up with the most viable vendors out there. There are ways to mitigate the risk by identifying the most viable, largest strategic partners to work with."
Vendors generally are aware that they must not appear to favor a particular partner or group of VARs over anotherespecially in the case of an acquisition, where partners of the acquired company may have bruised feelings, said Inacom's Benson.
"The most important concern needs to be, What is the playing field going to be when this comes to pass? It may give another partner beneficial pricing, although that's usually short-term," Benson said. "Our experience is that this is usually negligible and short-lived."
Risk management
Whether a vendor is buying or being bought, leveraging existing relationships can help solution providers stay in the corporate loop, keep a high profile with the vendor and improve their odds of maintaining a position of strength in the unified company. Savvy vendors often consult with their leading channel partners before adopting new or changing current programs, said industry executives.
There is always, too, the very real worry that the acquiring vendor could drop a partner altogether for various reasons: too much geographic or vertical coverage, orders that are "too small," or a perceived lack of commitment or technical expertise, said channel executives.
And, of course, the alternate scenario can occur: VARs used to being a big fish in a small pond may not want to work with a more distributed, multibillion-dollar organization, experts said.
But if a solution provider wants a chance to work with the acquiring vendor, it should make itself known, industry experts agree, by underscoring its success in a particular market; its certification and levels of expertise; and, of course, the number of dollars it has delivered to the acquired company and the history of its relationship with the company.
"Those service providers that consistently are the rainmakers in that particular vertical or geography could have tremendous influence," Pang said.
Since the most successful acquisitions typically include managers from both companies, solution providers should be prepared to sing their own praises. In some instances, vendors keep outbound-facing employees such as technical support and sales staff so solution providers continue to work with a familiar individual.
"The quality of the VAR's service leading up to the merger might lead them to have some internal champions within the company," said Perkins. "They could be a friend to their champion within the organization and maybe improve their lot."
Likewise, solution providers should take advantage of vendors' deal- and customer-registration programs to protect their business, said Benson. "It's important to participate in customer registration of opportunities, so if you've been working with a customer for the past 12 or 18 months, you don't get undercut in the midnight hour."
Staying visible with a vendor's employees in different departments can help solution providers stay abreast of anticipated changes, ensure they continue to participate in panels or one-on-one meetings, and receive customer referrals.
"We really do business with people, not companies," Perkins said. "We need to diversify our relationships with people within a company and diversify the number and type of people within our organization who have relationships with their vendor's people."
New opportunities
Whether they were members of the acquired company's channel or the acquirer's channel, the early days of a merger or an acquisition are a perfect time for solution providers to take advantage of educational seminars, training and marketing materials on the new products now available to them.
As members of the same channel, legacy solution providers from the acquired and acquirer's companies may successfully partner to complement their respective areas of expertise. At a time when the two vendors are learning more about each other, the acquirer often expends many resources to introduce itself to its new indirect partners and to educate existing partners to the new technologies now available to them. This provides an opportunity for VARs to requestand, often, receiveleads on complementary partners or potential contracts for their areas of expertise.
Of course, a successful merger or acquisition takes timeanywhere from a few months to more than a year, depending on the scope of the deal. With patience and perseverance and through ongoing communication with vendors and customers, solution providers can and will survive their developers' deals, say experts and channel executives.
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