The consumer healthcare market has been characterized by consolidation in recent years with a sustained level of mergers and acquisitions among the leading players. Consolidation has proved critical in an industry characterized by high research and development outlays as companies have been forced to better manage the escalating cost of bringing new products to market. Companies also have needed to keep a wide range of products under development in order to maintain shareholder value.

The intent of the acquisition was to expand opportunities for product development, production, and sales of health-related products. As far as the finances and corporate structures were concerned, the deal was treated as a merger. The two years that it took to complete negotiations and initial restructuring were costly in terms of both time and money.

Acquisition-related costs in the past year alone approached $900 million. This included combining the staffs of the two companies plus restructuring of operations and system integration. Other significant expenses were related to severance payments, costs of vacating duplicate facilities, and other exit costs such as contract terminations. Clearly, the Watson-Baker deal represented not only opportunity but also a world of pain, confusion, and cost for those responsible for managing the merged company’s operations and finances.

But perhaps the most challenging aspect of this union had to do with people, and not with numbers, systems, or real estate. The skilled, motivated and well-compensated individuals who constituted the sales forces of Szemsted and Watson-Baker made up two strong teams. In order for the combined company to succeed, they needed to become one strong team, and quickly.

The job of bringing together sales forces in any industrial environment is not an easy one. In an industry as specialized as healthcare, it can be uncommonly difficult. To learn why, let’s look at those employees who make up the sales staff.

Characteristically, pharmaceutical sales jobs are quite secure. The reps have excellent income potential and often enjoy very comprehensive health and medical benefits. They can build long-lasting careers selling a continuing flow of new products that generally are in strong demand. Sales reps, many of whom are extensively trained and who deal directly with physicians in their work, represent a substantial investment for the drug companies.