An Excerpt from "The Employee Handbook for Navigating Mergers and Acquisitions"
by Mitchell Lee Marks
Editor’s Note: Several factors figure into the eventual success or failure of mergers and acquisitions—including the depth of due diligence, the financial details of the transaction, the process through which integration decisions are made and implemented, and even the timing of the deal. Our personal experience—and what we consistently hear from our seminar attendees—also points to the human and cultural dynamics impacting the achievement of a deal’s financial and strategic goals. That’s why we recently published “The Employee Handbook for Navigating Mergers and Acquisitions.”
Below is the fourth in a series of brief excerpts from the handbook. Learn more details about the book HERE. Request your FREE copy, learn more about pricing, or place your order through the M&A Leadership Council; please call our offices at 214-689-3800.
Expect Mid-Course Corrections as M&A Implementation Moves Forward
If there is one final lesson we can offer on the M&A process it is that just as things may appear to be settling down, they can change all over again. In one of our most important findings from studying mergers and acquisitions for over 30 years, we discovered that the most successful combinations—the ones that achieve their financial and strategic objectives—tend to have major mid-course corrections. That is, as leaders identify and move toward a certain vision for the combined organization, they learn new information and make important modifications to that vision.
Think about it—a merger can take several months and sometimes over a year to plan and implement. During that time a lot can happen—leaders can gain new insights into the combining partners, the competition can change, technology can advance and customer needs can shift. All of these can necessitate a new round of changes as the combination is being planned and implemented. This is a sign of smart leadership, not indecisive leadership.
While these mid-course corrections can be beneficial to the merger or acquisition’s overall results, they can be very stressful for people who have to contend with yet another round of changes and transitions. To prepare yourself, it is helpful to understand the sources of M&A stress and how to manage the symptoms of stress, both of which we will cover in Part II of this handbook.
So, What Should You Be Doing Now?
Don’t believe everything you hear from other employees—rumor mills are notorious for conveying information that is much more dire than reality.
Do talk to your boss about what your current work priorities should be.
Don’t try to guess what is being expected of you.
Do ask questions about the merger or acquisition.
Don’t be disappointed if detailed answers are not forthcoming.
Don’t jump ship until you receive clear signals about what your future might be—the grass may look greener elsewhere … but if your industry is consolidating then that organization you jump to may soon also merge or be acquired.