Post-Merger Integration Best Practices

I've led 17 M&A integrations. Here are the 5 critical lessons I've learned: 1. 𝐋𝐞𝐚𝐝𝐞𝐫𝐬𝐡𝐢𝐩 𝐚𝐭 𝐭𝐡𝐞 𝐓𝐨𝐩 𝐑𝐞𝐪𝐮𝐢𝐫𝐞𝐬 𝐚 𝐃𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐭 𝐌𝐢𝐧𝐝𝐬𝐞𝐭 Traditional leadership development fails during integration. Why? Because uncertainty demands a different kind of leader. Through these integrations, I learned to identify leaders who: • Thrive in ambiguity • Adapt their style instantly • Read situations before they escalate • Drive change without losing people 2. 𝐋𝐢𝐬𝐭𝐞𝐧 𝐚𝐧𝐝 𝐋𝐞𝐚𝐫𝐧 𝐁𝐞𝐲𝐨𝐧𝐝 𝐭𝐡𝐞 𝐍𝐮𝐦𝐛𝐞𝐫𝐬 The true value isn't just in products and revenue. Some of the best discoveries can come from understanding what made the acquired company exceptional in their: • Human resource strategies • Cultural dynamics • Inclusion practices These are often the hidden gems that should reshape the acquiring company, not just the other way around. 3. 𝐈𝐧𝐭𝐞𝐠𝐫𝐚𝐭𝐞 𝐰𝐢𝐭𝐡 𝐇𝐞𝐚𝐫𝐭 𝐚𝐧𝐝 𝐌𝐢𝐧𝐝 Success isn't just about systems integration. It's about: • Seeing the faces behind the spreadsheets • Understanding transferable skills • Creating meaningful roles that honor expertise • Walking in their shoes through the transition 4. 𝐁𝐞 𝐚 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐏𝐚𝐫𝐭𝐧𝐞𝐫 𝐭𝐨 𝐋𝐞𝐚𝐝𝐞𝐫𝐬𝐡𝐢𝐩 I've watched great managers crumble during integration. And seen unexpected leaders emerge from the chaos. Here’s what differentiates: • Challenge assumptions constructively with market intelligence • Balance short-term wins with long-term strategic goals • Support decision-making with clear risk/benefit analysis • Act as a bridge between acquired and acquiring leadership teams 5. 𝐋𝐢𝐦𝐢𝐭 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐃𝐢𝐬𝐫𝐮𝐩𝐭𝐢𝐨𝐧 While integration is complex, maintaining business momentum is critical. Focus on: • Preserving customer relationships • Maintaining operational excellence • Protecting revenue streams • Keeping top talent engaged Through these integrations, I've learned that success isn't written in manuals. It's carved out in moments of uncertainty. The best strategies emerge when we dare to look beyond traditional playbooks. And see the full picture: products, people, and possibilities. 👉 To my fellow Corporate Development and M&A experts: What crucial lessons would you add from your integration experiences? Share them below so we can keep learning from each other.

Here’s the truth: Deals win or die by what happens after close. M&A isn’t just about numbers. It’s about envisioning the end state. I’ve seen too many deals get done for the wrong reasons—chasing revenue, ego, or momentum—without ever asking: What do we want this to look like after the dust settles? That’s why Buyer-Led M&A flips the script. We lead with clarity, not chaos. 🔹 Start by mapping the end state. Not just the financials—think operating model, customer experience, and decision-making structure. What does “success” actually look like? 🔹 Then dig into culture. Forget the surface-level values page. You need to understand how decisions get made, how people work, and how priorities shift under pressure. That’s the real culture. 🔹 Now you can start building a joint go-to-market plan. This is your integration thesis. What does the customer experience look like as a combined company? 🔹 Integration planning should run parallel to diligence. Same team. Shared information. Continuous learning. That’s how you get to Day 1 readiness—and avoid repeating diligence after you’ve already bought the company. 🔹 Finally: reverse diligence. Let the target get to know you. This is a two-way street. The more transparency, the more alignment, the more likely you’ll retain the people who actually make the deal work. M&A isn’t a race to term sheets. It’s a race to value creation—and that starts by leading the process, not just following it. This is how I define the Buyer-Led M&A™ mindset. What am I missing? Let me know in the comments. #MergersAndAcquisitions #BuyerLedMA #DealRoom

🚨 Private equity just bought the company. GTM is sprinting. Finance is modeling. And none of it ties together. Here’s the hard truth: If your CRM, ERP, comp plans, pricing, and financial model aren’t fully aligned post-acquisition, your value creation plan is built on noise. What we see all the time post-close: 🔹 CRM (Salesforce, HubSpot): Forecasts are strong — but Finance has no confidence. Close dates slip. Deal sizes change. No link to margin. 🔹 ERP (NetSuite, QuickBooks): Shows true COGS (it normally doesn't), margin, and collections — but that data never flows back to GTM, pricing, or sales ops. 🔹 Comp plans: Incentivize revenue at all costs — even when deals are low-margin or over-discounted. Misaligned incentives = value destruction. 🔹 Pricing: Lives in spreadsheets, disconnected from real-time margin data or customer acquisition cost. 🔹 Financial Model: Beautifully built for the board deck… but completely divorced from what’s actually happening in CRM or ERP. 🔹 Budget vs. Actuals (BvA): Becomes a monthly fire drill. GTM blames Finance. Finance blames GTM. Meanwhile, investors are asking why results don’t match the model. 👉 The fix isn’t more spreadsheets. It’s systemic integration between your GTM and Finance engines: ✅ A CRM that reflects real margin and CAC ✅ An ERP that feeds live data into your model and BvA ✅ Comp plans tied to gross profit, not just revenue ✅ Pricing tools embedded in your sales motion ✅ A BvA process that drives decisions — not finger-pointing If you’re post-acquisition and these aren’t connected yet, you’re not just inefficient — you’re flying blind. 💬 Operators, CFOs, and RevOps leaders: What’s the biggest disconnect you’ve seen post-deal between the field and finance?

🔁 Simple 3-Step Process from McKinsey & Company to Organizational Culture in Mergers 🔁 With a cheat sheet to create a unified company culture. Success hinges on more than financial synergies. You must work on seamlessly blending organizational cultures. McKinsey's seasoned experts share a proven three-step approach to mastering this crucial aspect of integration, drawing from insights gained through 2,800 mergers from 2014 to 2019: 1️⃣ 𝐃𝐢𝐚𝐠𝐧𝐨𝐬𝐞 𝐡𝐨𝐰 𝐭𝐡𝐞 𝐰𝐨𝐫𝐤 𝐠𝐞𝐭𝐬 𝐝𝐨𝐧𝐞 > Dive deep into each company's DNA, uncovering the unique "secret sauce" and identifying pearls that must be preserved > Don't rely on gut instincts - employ a scientific approach through surveys, interviews, and focus groups to build a fact-based understanding 2️⃣ 𝐒𝐞𝐭 𝐩𝐫𝐢𝐨𝐫𝐢𝐭𝐢𝐞𝐬 > Ask two important questions: What behaviors will maximize deal value? and where are the gaps that demand attention? > Develop a clear from-to roadmap, ensuring alignment across the top team, and involve target-company leaders for successful implementation 3️⃣ 𝐇𝐚𝐫𝐝-𝐰𝐢𝐫𝐞 𝐚𝐧𝐝 𝐬𝐮𝐩𝐩𝐨𝐫𝐭 𝐜𝐡𝐚𝐧𝐠𝐞 > Embed the identified themes and initiatives into the company's operating model > Redesign policies, processes, and governance to reflect the desired culture > Identify influencers within the organization and empower them as change agents > Leverage signature initiatives to underscore commitment I’m sharing below a cheat sheet on creating a unified company culture. Check it out.👇🏼 What do you think is the most underrated factor in cultural alignment during mergers? 💭 #Culture #CultureIntegration #MergersSuccess #Leadership #CorporateTransformation

We aren't seeing a ton of M&A right now, but we are certainly seeing the results of poor integration planning. Far too few buyers come to the table with a clear post-acquisition integration plan, especially on the human resources side. This isn’t just a missed opportunity — it’s a strategic risk. Why integration planning matters: * Culture clashes can kill performance... especially in highly regulated, compliance-driven environments. * Disjointed SOPs and workforce policies lead to operational drag, especially across multi-state operators. * Without a people strategy, you risk losing top talent and morale. Buyers should be asking: * What’s the state of the HR tech stack (payroll, scheduling, onboarding)? Is it scalable? * Are there employee classification or labor risks — especially around hourly roles or contractors? * What’s the leadership bench strength? Who are the culture carriers worth retaining? * Are benefits and compensation aligned and competitive, or will harmonization cause churn? * Is there a clear plan to align org structure and compliance training across entities? M&A without integration is like planting without watering — you might own the asset, but it won’t grow. Let’s stop thinking of HR as a post-close detail. It’s your retention strategy, culture play, and risk buffer — all in one. I would love to hear from folks in cannabis M&A, HR, or ops: What’s working — and what still needs fixing — when it comes to integration? #CannabisIndustry #MergersAndAcquisitions #HRStrategy #OrganizationalIntegration #CannabisBusiness

Every M&A is unique, and is dependent on the context and circumstances of the deal. Nevertheless, certain factors consistently make or break deals and mergers. Here are three takeaways from my experience: 1. Strategic Alignment & Execution: Clarity on "why" you’re doing the deal is everything. It should guide decisions at every stage. In one transaction, misalignment between us and the sellers led to a tough integration process—and the departure of key team members. That lesson stuck. In the next deal, we made the “why” central to every discussion, aligning everyone around a shared goal. The result was a smoother process, strong team retention, and long-term success. 2. De-risking deal roadblocks: Every deal comes with risks—but they aren’t one-size-fits-all. Evaluating risks in the specific context of the buyer, seller, and market is critical. Use data to dig deep into culture, product, financials, and go-to-market risks, and create actionable plans to mitigate them early. 3. Process & Integration: Closing the deal is just the start. A clear integration plan that ties back to the why we did this deal with well defined milestones can expedite ROI. At the same time, flexibility is key. Start with a well defined plan but stay agile and ready to change as the integration progresses. 

2nd Edition: This free 279-page e-book written by a McKinsey alum includes over 150 checklists to support a best-practice post-merger integration. If you'd like a copy of The Umbrex Post-Merger Integration Playbook, please let me know in the comments 👇 Playbook Summary: SECTION 1: Pre-Merger Planning Before the merger is completed, a plan should be established for the merger integration. This list should include a timeline, objectives, team assignments, and other necessary elements. SECTION 2: Due Diligence This section outlines the critical information you need to gather from the other organization, including financials, contracts, customer lists, IP assets SECTION 3: Integration Management Office This lays out the IMO team and workstream leaders, along with the process for regularly reviewing the integration progress, adjusting plans as necessary, and learning from the experience to improve future mergers. SECTION 4: Communication Internal and external communications, including employees, shareholders, customers, and media. SECTION 5: Financial Integration Integration of financial reporting, establishing combined financial targets, reconciling accounting procedures, and other financial tasks. SECTION 6: Operational Integration Integration of operations, including production, research & development, distribution, customer service, technology, processes, policies, etc. SECTION 7: Supply Chain Integration Integration of procurement, production, logistics, and other supply chain activities. SECTION 8: Marketing Integration Coordination of the marketing efforts of the two companies, aligning branding strategies, and integrating customer relationship management. SECTION 9: Sales Integration Coordination of the sales efforts of the two companies, aligning branding strategies, and customer relationship management. SECTION 10: Customer Integration A plan for informing customers about the merger and integrating customer service operations, including protocols for maintaining high levels of customer satisfaction and retention during the merger. SECTION 11: Human Resources Integration Integration of HR policies, benefits, career paths, performance management systems, and steps to assess and integrate the corporate cultures of the merging entities. SECTION 12: IT Systems Integration IT integration including the merger of IT systems, including software, hardware, data management, cybersecurity, and digital infrastructure. SECTION 13: Risk Management Identification of possible risks that could arise from the merger SECTION 14: Legal and Compliance Ensures all merger activities align with regulatory and legal requirements === Hi, I'm Will Bachman. My mission is to help independent professionals thrive. Support this work: [repost] Get access to this resource: [comment] To see my future posts: [follow] and ring the 🔔on my profile Stay in touch: [connection request]

We've all heard how bank mergers are transformative, but the real challenge lies in the integration of the two businesses, right? I discussed this thought with my Cornerstone Advisors partner, Quintin Sykes, in Scottsdale yesterday afternoon. FWIW, his team has led integration efforts in four of the top 20 bank M&A deals since 2023. Based on these experiences, he offered these three "early action items" for those who haven’t done a deal in a while: ⏰ Start Planning Early With the resurgence of significant acquisitions (e.g., Renasant Bank, UMB Bank, United Bank, SouthState Bank, Sunflower Bank, N.A., Burke & Herbert Bank), it's crucial to begin integration planning as soon as the deal is announced. To paraphrase my colleague from Carolina, early planning aligns key goals + sets the stage for a smoother transition. Thinking about your merger readiness well before due diligence starts? Even better. 📣 Focus on Culture & People Address cultural integration and employee concerns from the jump. This is a theme I heard for years while I was the #CEO of Bank Director and, most recently, on stage at #AOBA24. Change is difficult for many, so you can’t over-communicate, be it internally or externally. 🧗🏻Figure Out Your Tech Gaps What do you want the combined organization to be known for? Does your combined tech get you there? You may need to manage new complexities, especially in IT and operational systems… but if additional projects arise that are needed for integration, how much do you take on at once? _ _ _ 🗒️ Taking a page from my/our friend Chris Nichols at #SouthState, I shared the approach #Cornerstone takes when engaging in bank mergers in the accompanying images. Whether you're in an FI looking to grow through acquisition or supporting those engaging with potential sellers, I invite you to share your experiences (or questions) about #MergerReadiness in the comments. What strategies have worked for you? What challenges have you faced? Let's discuss 👇🏻

Post-merger integration isn’t just about syncing processes—it’s about merging people. How do you expect two teams to work together when: 🔻 The acquired team feels ignored? 🔻 Their legacy gets tossed out like old news? 🔻 There’s no clear culture tying it all together? Here’s where most businesses fail in an acquisition: They treat cultural integration like an afterthought. My POV: Cultural integration takes thoughtful planning, and companies running on EOS® have great tools to smooth over this challenging time. The V/TO? It’s your map. The Accountability Chart? It's rulebook, something to reference so everyone knows their role in the new structure. The Level 10 Meeting™? Your opportunity to identify issues and resolve tension before it erupts. If you don’t prioritize culture, you’ll lose the value of the deal before you even hit Year 1.