Importance of Employee Alignment in Mergers and Acquisitions

Everyone loves to talk about the strategy behind M&A deals. But the thing I’ve learned watching FMCG leaders up close? Deals don’t fail because of bad strategy. They fail because of people. It’s never the financial model that breaks first — it’s leadership misalignment. I see it happen all the time in FMCG — especially in Private Equity backed environments. The model looks perfect on paper: → Acquire a few fast-growing brands → Roll them into a global portfolio → Drive efficiencies, cost synergies, market expansion But then the integration starts — and suddenly things look very different. Because what the spreadsheet doesn’t tell you is: → The founder isn’t used to quarterly board meetings with EBITDA pressure → The CMO is still running a startup playbook in a scaled organization → The CEO doesn’t align with the go-to-market model in a new geography → The commercial leaders can’t navigate two different company cultures merging overnight And this happens more than most will admit. In fact — Bain & Company data shows 70% of M&A deals underperform expectations. And culture is one of the top 3 reasons. In the FMCG space — where brands carry legacy pride and deeply embedded ways of working — leadership integration is no longer “important.” It’s non-negotiable. Great M&A outcomes today don’t just come from smart strategy. They come from: → Leadership teams that trust each other faster than the market moves → Leaders who can flex between entrepreneurial scrappiness and corporate discipline → People who know when to protect brand identity — and when to evolve it And here’s what I tell my clients: If leadership alignment is not your #1 risk mitigation strategy in M&A — you’re not just betting on growth. You’re betting on luck. The smartest investors I work with in FMCG? They’ve learned this the hard way. They’re doing culture diligence as seriously as financial diligence. They’re assessing leadership “integration readiness” before the deal closes. They’re hiring talent not just for operational excellence — but for the ability to navigate ambiguity, pressure, and transformation. Because the future of FMCG M&A won’t be won by the best strategy. It will be won by the best people. Drop me a message — I’m always up for a conversation on building high performing teams. #FMCG #ExecutiveSearch #PrivateEquity #MergersAndAcquisitions #Leadership #CultureIntegration #ConsumerGoods #HiringStrategy

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.

Leading teams through mergers and acquisitions is one of the most challenging experiences a leader can face. Early in my career, I had the opportunity to lead a retail division through a major acquisition. The acquiring company decided to shut down all existing stores and have employees reapply for their roles - a move that sent shockwaves through our tight-knit, multi-generational team. As a young leader, my initial instinct was to focus solely on the operational aspects of the transition. But I quickly realized that the emotional side of the equation was just as critical, if not more so. In times of change, the balance between operational excellence and compassionate leadership must shift. I learned that in these moments, your team needs your strength more than ever. → It's not about agreeing with their frustrations, but rather acknowledging their concerns while helping them understand the reasons behind the decisions. Transparency, empathy, and a willingness to listen are paramount. Taking the time to answer the WHY behind the changes, painting a picture of future possibilities, and, most importantly, being present for your team - these are the things that build trust and resilience in the face of uncertainty. Leadership during mergers is about navigating that delicate balance between driving results and caring for your people. It's about showing up authentically, leading with compassion, and helping your team see the opportunity in the midst of the chaos. If you're leading through a merger or acquisition, know that your team is looking to you for strength and stability. Lean into the discomfort, communicate openly, and never forget that your people are your most valuable asset. Together, you can emerge stronger on the other side.

Mergers and acquisitions are often portrayed as financial chess games—spreadsheets, valuations, and "strategic synergies" dominate the conversation. But those who have been through the process know the truth: M&A is as much about people, their livelihoods, and their future as it is about balance sheets and the profit driven playbook. I'm grateful for my 20+ year career as a PR professional, communicator, entrepreneur, and people leader, as it's played a pivotal role in how I help support clients going through the M&A process. It's the people involved in the deal - on all sides - that make it happen, not the numbers. Here’s why the human element often determines a deal’s success: Culture Alignment Matters Most - When two companies unite, so do their cultures. Misaligned values, leadership styles, or approaches to work can create friction, even if the financials make perfect sense. Successful deals invest early in understanding cultural fit and planning for integration. Employees Drive the Outcomes - Behind every transaction are employees who bring the vision to life. If they feel overlooked or uncertain, morale and productivity can plummet. Transparent communication and clear plans for their roles post-transaction are key to retaining and motivating the talent that makes the business thrive. Some financial "skin in the game" (equity, incentives, enhanced bonuses) for those key employees who are pivotal in making the deal successful can be a game-changer for a successful outcome. Leadership Transitions Are Critical - Whether it’s the seller stepping away or the buyer taking over, leadership transitions can be tricky. Ensuring that leaders on both sides are aligned on goals, expectations, and messaging is crucial. Trust between leadership teams creates a strong foundation for success. Reputation and Relationships Count - M&A doesn’t happen in a vacuum. How the process is handled can impact the reputation of both the buyer and the seller with employees, customers, and partners. A deal that prioritizes empathy and respect builds goodwill and strengthens relationships across the board. For sellers, it’s not just about the financial payout—it’s about what happens next. Will the business they built continue to grow and succeed? For buyers, the stakes are just as high: How will this deal fulfill their long-term vision? Centering the human element ensures both parties are set up for a future they can really get behind. What’s your take on the human side of M&A? Have you experienced deals where focusing on people made all the difference—or seen what happens when it’s overlooked? I’d love to hear your stories.

Here's what kills most accounting firm acquisitions: It's not the purchase - it's what happens after. You can nail the deal, have perfect financials, and still watch everything fall apart during integration. It comes down to one thing - the people. As 🔥 Michael Ly pointed out on the Earmark Podcast, you won't keep clients without the people who've been serving them for years. That's the make-or-break moment. Ashley Rhoden hit on something huge that gets missed in due diligence - culture alignment. Everyone focuses on numbers, but if your compensation models don't match up, if you can't make these employees whole when they join you, you're done. You can't do the job without them. During due diligence, you have to figure out who actually has the relationships that bring in revenue. Often, it's just a few key people. Lose them, and you lose the clients. Michael shared something smart they do at Reconciled - they empower employees from the acquired firm to lead parts of the integration. These people know their firm better than you do. Why not let them own a piece of the process? The math is simple: • Without people, you have nothing • Employees ARE the client relationships • A few key people often control your acquisition success You need to know your client concentration, who manages those high-value relationships, and how you'll transition them while bringing in your own key leaders. You can't be dependent on just one person having these critical relationships. It's not just about keeping talent - it's about recognizing that integration success depends on the people who already have the trust. Tune in to the Earmark Podcast wherever you listen to podcasts and earn free CPE for listening with the Earmark app.

An acquisition isn’t a strategy. It’s a starting point. The deal is done. But the team? Not yet. Here’s where we see integration stall every time: 🔸️Culture is assumed, not aligned. 🔸️Middle managers are left in the dark. 🔸️The new “we” never gets defined. To get ahead of that, here are 3 steps you can take today: 1. Define 3 non-negotiable behaviors that highlight what good leadership looks like now. Get specific. Co-create these expectations across both legacy teams. 2. Spot the hidden tripwires. Culture isn’t the poster on the wall, it’s how decisions get made and who gets rewarded. Identify mismatches early, before they trigger breakdowns. 3. Equip the middle 20%. These managers carry the weight of change. Invest in their clarity and confidence now, or risk confusion later. Allison Wright and I built a culture integration tool to support this work- one that surfaces blind spots, aligns behavior, and creates shared language for what’s next. Signing the deal is the easy part. Building a unified team that performs? That’s the real integration. What’s one thing you wish someone had told you before your first M&A integration? #MergersAndAcquisitions #Leadership #IntegrationStrategy #OrganizationalEffectiveness #CultureChange #ChangeManagement #Transformation

M&A isn’t just about signing a deal, it’s about making the deal work. We've acquired 7 companies in the last 4 years, and the biggest lesson? The real work happens after closing. Integration makes or breaks the acquisition. Here are the 4 biggest mistakes I see founders make when acquiring and integrating businesses: 1/ No clear integration thesis - What’s the actual goal? A lot of buyers close a deal without a real plan for integration. - Are you merging products? - Keeping brands separate? - Consolidating operations? Every acquisition needs a clear strategy before day 1. 2/ Killing the culture - Why should the acquired employees be excited about the future? Acquiring companies rush to “synergize” without realizing people are the real assets. If employees feel like they’re getting steamrolled, they leave, and the value of the deal evaporates. Integration needs empathy, clarity, and alignment. But more imporatntly, it needs employee buy in. 3/ Overestimating Synergies - Did you cost cut too much? Buyers get excited about “efficiencies” and underestimate how hard it is to merge systems, teams, and operations. If you think you’ll save millions just by consolidating, you’re probably wrong. Execution always takes longer and costs more than you expect. 4/ Ignoring Customer Impact - Why do your customers care about this? The easiest way to ruin an acquisition is to mess up the customer experience. Immediately changing pricing, support, or product features too fast can send customers to competitors. Integrate carefully and protect your revenue base first. 👉 If you screw up integration, you destroy value instead of creating it. M&A isn’t about closing deals. It’s about making them work.

M&A activity is accelerating in 2025 with deals like Aviva 's £3.7bn Direct Line takeover and the $22.5B ConocoPhillips Marathon Oil merger reshaping industries. But did you know that 33% of acquired employees leave post-acquisition, and culture misalignment is the #1 reason acquisitions fail? AI ALPI analyzed 75+ major acquisitions this quarter and found that HR involvement from day one of M&A discussions increases success rates by 40%. The most successful deals all shared one thing: CHROs were equal partners with CFOs during due diligence. Key insights for HR leaders: → Pre-merger involvement is crucial: It makes good business sense to involve HR earlier because we provide a different point of view and will ask different questions → Culture fit predicts success: Companies with high employee-engagement scores are 3x more likely to achieve post-merger synergies. Smart acquirers review Glassdoor scores before making offers ↳ 65% of 2025's healthcare M&A deals focus on therapeutic specialization rather than scale, requiring careful talent retention strategies → Speed matters: The integration timeline should be as short as possible. The quicker you integrate the two businesses the better While 59% of CEOs now prioritize acquisitions over organic growth (up from 42% in 2024), only 22% of companies use specialized M&A workflow software for people integration! 🔥 Want more breakdowns like this? Follow along for insights on: → Getting started with AI in HR teams → Scaling AI adoption across HR functions → Building AI competency in HR departments → Taking HR AI platforms to enterprise market → Developing HR AI products that solve real problems

Most deals don’t fail because the numbers were off. They fail because the assumptions, especially about people, were wrong. Too often, teams focus on financial modeling, market sizing, and legal risk, while neglecting one of the most critical components of a successful acquisition: cultural fit. 🔹 Strong dealmakers know better. They don’t wait until post-close to start thinking about how teams will work together. They start on Day 1. In a Buyer-Led M&A™ approach, cultural diligence isn’t a checkbox, it’s a core pillar. Every functional lead is trained to assess not just operational alignment, but cultural compatibility. They're not simply asking, “Can this company be integrated?” They're asking deeper questions: “How do these people think? What motivates them? Will they thrive inside our environment, or push back against it?” This kind of people-centric diligence is what separates deals that look good on paper from deals that actually create long-term value. Because when you align the people, you reduce friction, unlock collaboration, and preserve the momentum that made the target attractive in the first place. Buyer-Led M&A™ isn’t just about controlling the deal process, it’s about earning the right to scale by aligning strategy and culture. #BuyerLedMA #MergersAndAcquisitions