Despite COVID, in 2021, mergers and acquisitions exploded



Thom Dennis, CEO – Serenity in Leadership

July 15, 2022





2021 has been a banner year for mergers and acquisitions (M&A) activity. In the United States alone, mergers and acquisitions accounted for $581 billion. Yet according to the harvard business review, studies repeatedly show that Between 70-90% of mergers and acquisitions fail. A lack of support and care for the people in one or the two companies is often in the heart of this one.

During mergers and acquisitions the intention is generally to reap the rewards of bringing together systems, talents, resources, economies of scale, increase in customer base, portfolio discrepancy and access to new markets. However, M&A too brings potential unique challenges and issues, including reducing competition, increased monopoly power, personal and professional disruptions, job losses, higher prices and technology merges nightmares.

And what about the workers involved in the business How? ‘Or’ What can we do our best to protect them?

Search by King’s Business School and the University of Helsinki found that mergers are more likely to succeed if staff feel their jobs are sure and they are treated fairly. Providing the right staff onboarding support is known to increase the chances of a successful merger, but leaders often to prioritize time scale and finances more their peoplee. On many occasions when people are finally beInotg considered in detail, it’s too little too late because M&A box also be a good incentive for workers at refresh and look for work elsewhere. RResignations can increase the financial burden during a financially vulnerable period and impact the knowledge and skills required to run a business after the merger. Acquiring a deep understanding of the cultures that rub shoulders must be an important priority for leaderswhile retaining the best talent from the start.

here are 10 manners leaders can to create a people centered strategy for support their employees through Mergers & Acquisitions.

  • Shared corporate culture trumps synergy. Synergies are an important first step; the two companies can indeed do the same thing or target the same customers. However, shared cultures of two organizations are After important and must be part of the due diligence. LLook at what the differences and similarities are and if the values ​​between the two organizations are aligned. Honoring both cultures and then take the time to definee a new culture. Employees at top QC (Cultural Intelligence) will show their assess and can have an exponential positive impact on teamwork, performance, cooperation and communication right now.
  • Be honest and transparent. During Mergers & Acquisitionsworkers can feel good uncertain, and they will turn to their rulers at gain confidence. Managers who do not demonstrate an authentic and honest leadership style From the beginning increase feelings of mistrust and skepticism especially if false hope of job security Is offered.
  • Listen to concerns and take action. Good communication is of course essential. Employees are likely to be concerned about their jobs and what mergers and acquisitions entail. Share as much information as possible at each step and openly invite feedback, still socket stock where it is needed. By addressing concerns about workplace safety and what this big change means for employees, you’ll help them feel heard and supported.
  • Don’t drag it either. There will often be a tension between the need for trade secrecy and the need for transparency among those involved. The less transparency there is, the more trust and engagement are likely to be negatively impacted. So how quickly do you introduce change once the balloons go up? Do things quickly. Uncertainty breeds contempt and anxiety. It means there’s pain but I hope short term rather than dragging things out.
  • Look at the power dynamics when you merge two teams. Is there proper representation on both sides? The dynamics of ten% of a company and 90% of another one will never work. In large organizations, mergers are often seen as acquisitions same at the departmental level. Alignment of both teams is crucial, including the new management team around the governance of the new company. Many can I have go through difficult stages to get there.
  • Understand the importance of shared technology. Bundling of different software and systems can lead to huge difficulties and can lead to failure. Expect a party to adapt its communication tools and strategies especially if it involves a company adopting an older version of software that is less capable, this will cause resentment. In the planning phases, leaders must decide how to adopt the Software ensure there is sufficient time to train staff if there is technological changes.
  • ensure equality and inclusion. Equality including Pay, benefits and leave is important for a without conflict, healthy workplace. Encourage teamwork and employees to collaborate, enjoy diversity and get to know each other other especially if one of the companies is much larger than the other.
  • Embrace a new set of inclusive, agreed-upon values. As part of the new culture, take the time to create a clear sense of purpose and a set of values ​​that align with employee beliefs, which are built on principles such as respect and trust.
  • Call on experts in transition and change. Employees may need to adjust to new business and cultural. Using independent advisors can mean the difference between success and failure. The anticipated investment in impact mitigation is a need and a paying investment.
  • Mmeasure the long-term impact. The banks and leadership teams typically implement mergers and acquisitions, but once due diligence and the merger or acquisition are complete, it often becomes clear that someone else will be staying with the baby and the motives may not be aligned. Keep checking that inclusion and equality are on track and that the espoused goal is real.

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