In several of my previous columns, I’ve highlighted the tremendous value of having strong, ambitious owners backing you—owners who are willing to make bold decisions to consolidate an industry.
Having been through this process multiple times, I’d like to share some insights on what awaits you as the CEO of the acquiring company once the owners and the board have given their green light.
Merging with key competitors to become a clear market leader is an appealing strategy. Done right, it can create significant value—making it nearly impossible for competitors to catch up.
On a whiteboard or in a PowerPoint presentation, it looks straightforward. But how does it play out in reality?
Let me share some critical aspects you, as the leader, need to take control of—fast:
1. Keep Up the Pace from Day One
Once the deal becomes public, speed is essential. Your people—both existing and new—must quickly see a clear plan for the future. You need to inspire belief and confidence in the direction you’re heading.
2. Merging into ONE Company Is Harder Than It Looks
While creating a single, unified entity has clear benefits, it’s significantly more complex than running a loosely connected group of companies. Be prepared for unexpected hurdles.
3. Manage Employee Frustrations Proactively
Sales teams often benefit from expanded offerings and more resources. Administrative units, however, can face major disruptions. Expect frustration, especially from those whose roles are at risk of redundancy.
4. Retain Your Key Talent
Your top performers will be prime targets for headhunters:
“You don’t really want to stay through this messy transition, do you?”
This is why clear, positive communication about the merger is crucial. Make sure your key people want to stay and be part of the new journey.
5. Quickly Form Your New Leadership Team
Overnight, you’ll find yourself with multiple candidates for every C-level position. Decisive action is vital. Form a cohesive, high-performing management team as soon as possible.
6. Build a Unified Company Culture
Cultural integration is where many mergers falter. Show wisdom and empathy—don’t just favor “your people.” Invest time in understanding the acquired company’s culture and structure.
7. Address Compensation and HR Policies Early
Developing a unified salary structure and employee handbook is tricky but non-negotiable. People need clarity on what’s expected—and what’s in it for them.
8. Decide on Office Spaces Swiftly
You’ll likely have more office space than you need. Select which locations to keep and communicate the decisions promptly to minimize uncertainty.
9. Prepare for IT Complexity
With multiple ERP, CRM, and payroll systems, your IT landscape will become far more complex. Plan for this early to avoid operational chaos.
10. What About the Brand?
What will the new company be called? Never underestimate how sensitive—and vital—this decision is for both customers and employees.
Final Thought:
If you take just one thing from this column, let it be this:
Be extremely ambitious and meticulously prepared.
When the acquisition is announced, the pressure on you will skyrocket. You must be ready to give 110% to turn that impressive PowerPoint plan into reality.
Because while strategy is drawn on slides, success is built in execution.