Survivors & Skeptics: Steady Their Course to Avoid Disaster
By M&A Leadership Council
M&A deals are supposed to create value—but too often, they destroy it by neglecting the very people responsible for making them work.
Here’s the hard truth: Employees caught in an M&A transition are not neutral observers. They are either engaged and helping the deal succeed—or they are disengaged, mistrustful, and actively eroding its value.
M&A professionals spend months—sometimes years—running financial models, negotiating synergies, and aligning leadership. But if employees feel uncertain, overlooked, or exhausted, the numbers won’t add up in reality.
And right now, the workforce is more skeptical than ever. Gallup and Edelman Trust Barometer data show declining trust in leadership—a warning sign for M&A leaders who assume employees will simply follow along.
The most successful deals aren’t just measured in dollars. They’re measured in whether employees feel like winners, too.
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The Crew That Stays: Will They Jump Ship?
When layoffs happen in an acquisition, it’s easy to assume the employees who remain should be “grateful” to still have a job. But in reality, those who stay often face their own struggles:
The Problem:
- Survivor’s guilt: Watching colleagues lose their jobs creates emotional distress and disengagement.
- Uncertainty and fear: Even if they’ve kept their role, many employees wonder: “Am I next?”
- Increased workload: When positions are eliminated, the work doesn’t disappear—it just shifts to those who remain, leading to burnout and resentment.
- Loyalty erosion: Employees may question whether they truly belong in the new organization, making them more likely to quietly job hunt.
Retention does not equal engagement. Keeping employees on payroll isn’t the same as keeping them motivated, loyal, and productive.
The Solution:
✅Acknowledge survivor’s guilt. Let employees know it’s okay to feel conflicted and create space for discussions about the transition.
✅Be transparent about the future. If restructuring is done, say so. If more changes are coming, communicate what’s next and why.
✅Balance workloads. Recognize that remaining employees are not simply “absorbing” work—they’re adjusting to a new normal. Be proactive about setting realistic expectations.
✅Rebuild trust and engagement. Invest in team-building, recognition, and leadership visibility to reinforce that those who stay are not just there to pick up the slack—they are a valued part of the company’s future.
Organizations that fail to address survivor syndrome often face an unexpected second wave of turnover—right when they need stability the most.
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Employee Well-Being Isn’t Optional—It’s the Tide That Lifts M&A
It’s easy to focus on processes and structures during M&A—but those mean nothing if employees are mentally and emotionally drained.
The Problem:
- M&A transitions are high-stress environments. People are worried about job security, unclear on leadership’s vision, and mentally overloaded.
- Burnout skyrockets, leading to poor performance, stalled projects, and key talent walking out the door.
- Most M&A leaders underestimate how much uncertainty cripples productivity. People can’t do their best work when they’re stuck in survival mode.
The Solution:
M&A success depends on leaders treating employee well-being as a business priority, not a soft HR issue. That means:
✅Reducing ambiguity—Tell employees exactly what’s happening, when, and what it means for them. Silence breeds fear.
✅Equipping managers—Train frontline leaders to support their teams through uncertainty. A single trusted manager can re-engage dozens of employees.
✅Creating stability signals—Small things—like honoring existing work routines, publicly recognizing wins, or maintaining familiar traditions—help employees feel grounded.
✅Proactively addressing stress—Flexible work policies, check-ins, and well-being programs aren’t optional in M&A; they’re performance insurance.
A company in transition needs its employees performing at their best. But performance only happens when people feel safe, valued, and empowered to focus on their work—not just their job security.
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Anchor Success by Winning Over Your Workforce
At the end of the day, the success of any M&A deal is in the hands of employees. But too many companies act as if integration is something that happens to employees rather than with them.
The Problem:
- Employees aren’t just worried about whether they have a job. They’re asking: “Do I still belong here?” “Will my work still matter?”
- Disengagement doesn’t always look like resignations. Some employees stay but mentally check out—giving just enough effort to get by.
- Uncertainty kills motivation—leading to the very performance declines M&A leaders were trying to avoid.
The Solution:
M&A integration isn’t just about getting the operations in place. It’s about creating a workforce that wants to be part of the future. That means:
✅Giving employees a clear, compelling reason to stay—not just a paycheck, but a sense of purpose in the new organization.
✅Making trust a priority—Employees who don’t trust leadership won’t engage. Open dialogue, consistency, and transparency rebuild confidence.
✅Celebrating quick wins—Recognition is one of the most powerful engagement tools. Use it.
✅Making employees feel like winners—This isn’t about spin. It’s about real actions that show employees their contributions matter and their future is secure.
Deals don’t succeed on spreadsheets.
They succeed when employees believe in the vision, trust leadership, and feel like they’re part of something worth staying for.
M&A isn’t just about merging companies—it’s about merging people into a shared future.
Until employees feel secure, valued, and aligned with the new vision, you won’t get the performance levels needed to grow value.
Winning M&A isn’t just about hitting financial targets. It’s about creating an environment where employees want to be part of the journey. Because the best deals aren’t just profitable—they’re the ones where employees feel like winners, too.
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We invite you to attend "The Art of M&A® HR: Aligning People, Change and Culture to Optimize M&A Outcomes" - a highly interactive virtual course where you can ask questions, come to conclusions, and find out how other M&A professionals make decisions. March 18-20, 2025 for three half-days, via MS Teams.
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Learn more about mergers, acquisitions and divestitures at M&A Leadership Council's virtual training courses. Network with other M&A professionals while our expert consultant trainers prepare you for your next transaction (or help with an ongoing one) through practical insights, group discussions, case studies, and breakout exercises.