Sharing Best Practices For M&A Culture

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?

🔁 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

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.

💡 HR is often the unsung hero of successful M&A transactions With over 10 years of experience leading human capital strategies for mergers and acquisitions, I’ve seen firsthand how seamless integration can make or break a deal. Here are my top three priorities for ensuring success: 1️⃣ Due Diligence Beyond Numbers: Understand the culture you’re inheriting. Talent audits, leadership assessments, survey results, and alignment workshops uncover potential friction before it happens. 2️⃣ Clear Communication: Employees crave transparency (I cannot state this enough!) during times of uncertainty. Partnering with leadership to create a detailed communication strategy is key to reducing anxiety and retaining talent. There is no such thing as too much communication 3️⃣ Culture as a KPI: Integration isn’t just about processes—it’s about people. I prioritize embedding shared values and building trust across teams to ensure long-term success. HR leaders: How do you approach M&A transitions? What have you seen to be most successful? Let’s learn from each other! #MergersAndAcquisitions #HRLeadership #CultureTransformation #ChangeManagement