Importance of Change Management in Mergers

🚨 𝟲𝟬% 𝗼𝗳 𝗳𝗶𝗻𝗮𝗻𝗰𝗲 𝘁𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻𝘀 𝗙𝗔𝗜𝗟 𝗮𝗳𝘁𝗲𝗿 𝗣𝗘 𝗮𝗰𝗾𝘂𝗶𝘀𝗶𝘁𝗶𝗼𝗻. 𝗡𝗼𝘁 𝗯𝗲𝗰𝗮𝘂𝘀𝗲 𝗼𝗳 𝘁𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆. Because CFOs forget that spreadsheets don't resist change—people do. Your AP clerk isn't afraid of new software. She's afraid of becoming irrelevant. Your controller isn't resisting month-end acceleration. He's overwhelmed by expectations he doesn't understand. The 𝗔𝗗𝗞𝗔𝗥 framework is the tool that I recommend to use when integrating the finance/accounting for an acquisition. ✅ 𝗔𝗪𝗔𝗥𝗘𝗡𝗘𝗦𝗦: "Why must we change?" (Not just "the PE firm says so") ✅ 𝗗𝗘𝗦𝗜𝗥𝗘: "What's in it for me personally?" ✅ 𝗞𝗡𝗢𝗪𝗟𝗘𝗗𝗚𝗘: Role-specific skill building ✅ 𝗔𝗕𝗜𝗟𝗜𝗧𝗬: Tools and authority to actually perform ✅ 𝗥𝗘𝗜𝗡𝗙𝗢𝗥𝗖𝗘𝗠𝗘𝗡𝗧: Systems that sustain new behaviors One family manufacturer that I integrated into a PE portfolio: 15-day close to 5-day close in 6 months. Zero turnover. 𝗧𝗵𝗲 𝗱𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝗰𝗲? 𝗧𝗿𝗲𝗮𝘁𝗶𝗻𝗴 𝗽𝗲𝗼𝗽𝗹𝗲 𝗹𝗶𝗸𝗲 𝗵𝘂𝗺𝗮𝗻𝘀, 𝗻𝗼𝘁 𝗼𝗯𝘀𝘁𝗮𝗰𝗹𝗲𝘀. 𝗖𝗙𝗢𝘀 𝗮𝗻𝗱 𝗣𝗘 𝗽𝗮𝗿𝘁𝗻𝗲𝗿𝘀: 𝗬𝗼𝘂𝗿 𝗻𝗲𝘅𝘁 𝗱𝗲𝗮𝗹'𝘀 𝘀𝘂𝗰𝗰𝗲𝘀𝘀 𝗱𝗲𝗽𝗲𝗻𝗱𝘀 𝗺𝗼𝗿𝗲 𝗼𝗻 𝗰𝗵𝗮𝗻𝗴𝗲 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝘁𝗵𝗮𝗻 𝗱𝘂𝗲 𝗱𝗶𝗹𝗶𝗴𝗲𝗻𝗰𝗲. Full framework in article ⬇️ #PrivateEquity #CFO #FinanceTransformation #ChangeManagement

When doing any M&A - are you purchasing the intellectual property or the business? Because if you're buying ANYTHING more than the intellectual property, trust is at the core of the integration. You can (maybe) integrate systems in 90 days. Integrating trust takes a whole lot longer. One of the most overlooked risks in M&A? The human one. I’ve been through multiple integrations, due diligence cycles, and post-close transitions. And I can tell you: spreadsheets may win the deal, but it's trust, communication, and culture that determine whether the value actually materializes. Circling back to one of my previous posts - it is also making sure the "say" and the "do" match - ALL the way back to the initial due diligence. Here's what often gets missed: 🔹 People interpret silence as threat - and in the absence of information will create their own story - which is often significantly worse than the truth! Communication isn't just a courtesy—it's risk mitigation. 🔹 Culture is an operating system. Every team has embedded ways of working. If you force alignment without understanding those patterns, you may inadvertently shut down what made them successful in the first place. 🔹 Integration is emotional. Titles shift. Power moves. Identities blur. Benefits change. The process isn’t just technical—it’s deeply personal. And without a strategy for that, and a proactive change plan (that is HEAVY on the communication) you’re leaving value on the table. The most successful integrations I’ve supported had three things in common: 🧩 A shared leadership narrative grounded in purpose and clarity. 🧩 Early identification of cultural hotspots—not just red flags, but areas of pride and strength. Coupled with the understanding that the acquired organization may often have things to teach the buying organization! 🧩 A deliberate, empathetic, and transparent approach to change management—because speed without humanity breeds resistance. M&A is an incredible opportunity to reset, refocus, and rebuild stronger. But only if the people inside the business believe they have a future in the new version. The real synergy? It’s not just in the balance sheet. It’s in the belief system. I'd love to hear from others—what’s something you’ve seen work (or not) when two organizations become one?

Mergers are like marriages of convenience. Necessary but not necessarily desired. Are you helping people grieve their losses? Mergers and acquisitions are typically treated as financial deals. Legal, accounting, and operations teams take the lead. Spreadsheets are reviewed. Synergies are projected. But where is the space for grief? As an Organizational Ombuds, I’ve seen this play out time and time again: people aren’t just adjusting to a new org chart—they’re mourning the loss of the company they knew. Their familiar language, inside jokes, unspoken rules, even who gets the last word in meetings—all of that changes overnight. Each organization is like a sovereign nation with its own customs. A merger isn’t just a deal—it’s a cultural collision. If integration teams aren’t equipped to address that, resistance builds, trust erodes, and your top talent quietly disengages. What if we did it differently? 🔍 What if M&A teams included an Ombuds from day one? Unlike consultants focused on systems or advisors focused on valuation, Ombuds serve as confidential thought partners—listening to fears, spotting friction early, and helping leaders communicate in ways that feel human, not corporate. 🧠 We help people process change before it becomes conflict. 🗣 We teach leaders how to listen, not just announce. 🤝 And we translate between cultures—so that both legacy teams feel respected and heard. Because behind every stalled integration or culture clash is a simple truth: no one was tasked with helping people feel safe enough to adapt. So, I’ll ask: ➡️ Who on your integration team is responsible for emotional fluency? ➡️ How are you equipping leaders to communicate with empathy? ➡️ Who’s listening when people feel lost, angry, or overlooked? The numbers matter—but the human experience is what determines whether your integration thrives or fractures. Let’s not treat grief like a risk to be managed. Let’s treat it like a truth to be honored.

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