M&A Integration

Partner GTM After an Acquisition: Merging Two Channels Without Losing Either

Overlapping resellers, colliding registrations, two sets of hyperscaler agreements and one quota. Notes from eight integrations across Microsoft, Avaya and Noventiq.

Two companies merge. Both have partner programs. Both have resellers, both have hyperscaler agreements, and both have a number to hit. Somewhere in the integration plan there is a line item that says harmonise partner programs, and it is usually owned by whoever has the least to do that quarter.

That line item is where partner-sourced revenue goes to die for three quarters, and it is avoidable. Most of the damage comes from the same handful of decisions being deferred, not from the decisions themselves being hard.

What follows is drawn from eight go-to-market integrations across Microsoft, Avaya and Noventiq. The details differed every time. The order in which things broke did not.

Your partners find out before you tell them

The announcement is public. Within days every partner who sells either side is asking their account manager what happens to their margin, their registrations and their renewals. If the answer is “we’re working through it,” they hear your position is not protected, and the rational response is to start hedging.

You cannot answer the substantive questions on day one. You can answer the procedural ones, and that is most of what they need: existing registrations are honoured through their current term, existing margin is held for a stated period, and here is the date by which the combined program will be published. A date they can plan around beats an answer you are not ready to give.

The overlap is the whole problem

Run this before anything else: which partners transact with both sides, and at what tier and margin on each.

The overlapping set is where the real decisions sit. A partner at the top tier on one side and the middle tier on the other will not accept the middle. Levelling everyone up is the clean answer and it is expensive. Grandfathering preserves the economics and creates two classes of partner inside one program, which is administratively grim and visible to the partners themselves.

Either is survivable. What is not survivable is discovering the overlap in month four, because by then you have published a program that silently demotes your most productive partners and they have read it before you have called them.

Deal registration collides first and loudest

Two programs mean two registration systems, two sets of rules and two definitions of what constitutes a protected opportunity. The same end customer will be registered by two different partners under two different programs, both legitimately, and both will expect protection.

This surfaces within weeks because it is transactional, and it is the first thing that makes partners believe the integration is being run badly. Publish interim rules of engagement early — even crude ones — and staff someone to adjudicate. An imperfect rule applied consistently does less damage than a fair process nobody can find.

Hyperscaler relationships do not merge on your timetable

This is the piece most integration plans underestimate. Each side arrives with its own co-sell agreements, marketplace listings, partner IDs, funding commitments and field relationships, and consolidating them runs on the hyperscaler’s process, not yours.

Marketplace listings have to be migrated or re-created, and private offers in flight may not transfer. Partner IDs and co-sell records sit under separate entities. Committed-spend arrangements a customer drew against under one entity do not automatically follow. Field relationships are with people, and those people are measured on their own scorecards — they will keep working with whichever entity is easiest to transact with until told otherwise.

Start these conversations during diligence if you can and in the first weeks if you cannot. They take quarters, and until they land you have two partial motions instead of one combined one.

Contracts do not transfer just because the company did

Depending on deal structure, partner agreements may need novating rather than inheriting. Distribution agreements, MDF commitments and rebate accruals all carry terms that were negotiated against one entity. Legal usually catches the master agreements; what gets missed is the accumulated informal layer — the rebate someone verbally extended, the exception granted to a strategic partner three years ago that everyone in the old organisation knew about and nobody wrote down.

Ask the outgoing partner team directly what commitments exist that are not in the contracts. They will tell you, and they will stop being available to ask within a couple of quarters.

What to settle in ninety days, and what can wait

Settle: interim rules of engagement, registration adjudication, margin protection through a stated date, a single named owner for partner revenue, and the publication date for the combined program.

Defer: tier structure, certification mapping, portal consolidation, rebate harmonisation. These matter and none of them are urgent. Partners can operate against two portals for a quarter. They cannot operate against an unanswered question about whether their deals are protected.

The common failure is the reverse — teams sequence the systems work first because it is tractable and visible, while the commercial questions that are actually costing revenue stay open because they require someone to decide something.

The measurement problem underneath all of it

Combined partner-sourced revenue is not the sum of the two prior numbers. The definitions differ, the attribution models differ, and the overlap means some revenue was counted by both sides for different reasons.

Establish the combined baseline deliberately in the first quarter, using one definition, and report against it from then on. Otherwise every subsequent conversation about whether the partner motion is working is an argument about which number is real — and that argument is unwinnable a year later when nobody remembers what either side was counting.

None of this is complicated. It is just nobody’s job until someone makes it theirs, and by the time the gap is obvious the partners have already drawn their own conclusions.