5 steps to handling mergers, acquisitions and integration

by Paul Falcone

When I wrote The First-Time Manager: Leading Through Crisis (September 2023) for HarperCollins Leadership, my goal was to discuss the incredible pace of change and disruption that so many of us have faced since the COVID pandemic. Employers and managers had to learn to manage remotely, effectively deal with talent shortages and burnout, prepare to fend off threats from labor organizing, and, yes, prepare for mergers and acquisitions as well as subsequent integration with other organizations that had purchased or sold their organizations as part of massive, distributed corporate restructurings.

The book was intended to help us gain the tools and scripts to lead effectively while also helping us manage and cope with our emotions during crises. The following excerpt covers one of the “crisis leadership” scenarios that affect everything from movie studios to biotech companies, oil and gas, pharmaceuticals, food retail and more.

KPMG’s 2024 M&A study shows that most executives anticipate a surge in M&A activity by the end of the year, with 75% planning to complete at least one transaction. Renewed confidence in the U.S. economy and the easing of high interest rates are contributing to this outlook. The following excerpt from the chapter should help you prepare for potential mergers and acquisitions that may come your way, as well as help you put your best foot forward as a manager or individual contributor.

No self-respecting book on management crises and disruptions can ignore the 800-pound gorilla in the room: surviving a merger, acquisition or divestiture and subsequent integration. Regardless of the cause, layoffs are a natural result of mergers and acquisitions. Some industry experts estimate that when companies in the same industry merge, about 30 percent of workers are deemed to have been laid off.

Therefore, mergers and acquisitions represent a unique opportunity in your career. The big question is: what do you do and how do you approach your career when you learn about potential M&A deals coming your way? Below are some approaches and considerations to keep in mind when you become aware of a potential threat.

Step 1: Don’t panic

Instead, take a collective breath to assess the situation, gathering as much information as possible.

Mergers and acquisitions represent momentous change and crisis. Having the right mindset is key to your success. While it may be your gut feeling to walk away from a deal when you hear about an impending potential M&A and post your resume, it’s best to first assess the situation objectively. Significant changes in corporate structure can create opportunities for voluntary leadership, mutual cooperation and greater accountability AND potential promotions.

Step 2: Conduct a personal SWOT analysis

SWOT stands for strengths, weaknesses and opportunities AND threats. A SWOT analysis is a great way to assess where you might fall on the spectrum of “caregivers” versus those who are more likely to be laid off. Licenses, certifications, expertise in mission-critical systems, and work experience can all work to your advantage. Of course, you can’t be sure how you’ll perform because you won’t know what talent exists at your level in another organization. You’ll rarely have the opportunity to look at your career more critically and objectively than in the face of a merger or acquisition, so make the most of that “added benefit” when it presents itself.

Step 3: Decide what direction you’re going in and focus on what you can control

There is no judgment (or self-judgment) involved. Some people keep their heads down and hope for the best. Others immediately contact headhunters and receive their CV without hesitation. However, there is a third option that may best benefit your career in the long run: get involved in the merger process. Treat it as an opportunity to promote yourself and your capabilities – they are there A lot moving parts and you may need to turn up the volume to get noticed.

Step 4: Ask the right questions

Companies conducting mergers and acquisitions activities undergo a “due diligence” process during which they check the books of the acquired company. “Buyer beware” is indeed the basic mantra and risk associated with mergersand if the acquiring company is overlooking something important – underfunded pension liabilities, massive regulatory failures Or significant pending legal proceedings – they inadvertently purchase this liability when the purchase is finalized. You should do it same. Ask your boss, your HR team or the acquiring company representative any of the following questions:

• Is our department unique or will we encounter a similar team in another company?
• Will my position be eliminated?
• Am I entitled to severance pay if I lose my job?
• Will my pay or benefits change?
• Are my responsibilities, location Or Who do I report to change?

Step 5: Follow these survival tips

The following strategies will likely serve you well during a merger or acquisition:

• Always be positive.
• Don’t hide.
• Leave the past in the past.
• Don’t speak negatively about the merger.
• Be flexible and ready to leave your territory.
• Find ways to lead change.
• Be aware of aspects of corporate culture that create barriers to change.
• Practice resilience.
• Be aware of signs encouraging you to quit smoking.

Following these strategies may not result in remaining in the newly integrated organization, either your current organization or yours IN different capacity. But if you do it wisely, you can come out of this process a winner, no matter what What Result.

We know that CEOs see flexibility and adaptability as essential qualities in people they want to hire. Consider applying this change as an opportunity to demonstrate yours strongest skills, knowledge and abilities and be prepared share your science with potential employers. Opportunities like these can build character as much as they build resumes, so proceed with caution, but don’t be afraid. Even the worst-case scenario – dismissal –gives you opportunities share during the job interview regarding how you have tried to support and lead change.

Paul Falcone (www.PaulFalconeHR.com) is principal of Paul Falcone Workplace Leadership Consulting, LLC. Find a complete list of his books at Amazon.com/author/paulfalcone. Subscribe to his YouTube channel at www.youtube.com/@paulfalconeHR.