LEADERSHIP STRATEGIES FOR NAVIGATING COMPANY ACQUISITIONS

IS YOUR COMPANY BEING ACQUIRED? RESISTANCE IS FUTILE.

Many of us will be part of a business that is involved in an acquisition or merger, either as the acquired entity or as the buyer.  

This can be a transformative experience, either positive or negative, but regardless, your life will undoubtedly change.

For those of you involved in an acquisition, whether as the acquired entity or the buyer, it's important to be prepared for the changes that lie ahead.

Here are 8 things to consider as you navigate this process.

1. Understand the reasons for the acquisition

Companies acquire others for various reasons, such as obtaining products, patents, unique employee experiences, or market positions. It could also be to acquire cash flow, customer relationships, or brand value.

Alternatively, your company may be underperforming, and the acquiring company believes they can turn it around and sell it for a profit.

Ask questions and conduct research to gain insights into the strategic purpose of the acquisition. This will help you understand what to expect and how to position yourself amidst the changes.

2. Be skeptical about P.R.

If your company is doing well at the time of the acquisition, you might be told that the acquiring company loves you and wants you to continue as before. While this may be true initially, it's unlikely to remain the case in the long run.

Anticipate that the acquiring entity will gain significant control over your business operations. Prepare yourself for this and avoid feeling frustrated or angry when it happens.

3. Accept that things will change

Don't cling to sentimental attachments of the past. Emotions do not drive acquisitions. Once you have acknowledged the changes, celebrate your company's achievements and strengths. Focus on what you can carry forward into the future without dwelling too much on the past.

4. Be realistic about your prospects

In most acquisitions, cost reduction is a key objective. If you work in a cost center or duplicate existing capabilities, you may be at risk of redundancy. It's important to recognize whether your value proposition is unique or easily replaced within the newly formed organization.

5. Pay attention to cultural issues

Cultural integration is a crucial aspect of successful acquisitions. Take the time to understand the cultural narrative and reality of the acquiring entity. Familiarize yourself with their values, preferred behaviors, and overall work environment. Assess whether you feel a positive connection with the people you interact with, and strive for transparency.

Recognize that the acquiring company's culture will be different, and be prepared to adapt your style accordingly.

6. Build bridges

Rather than impeding the necessary changes, actively build positive relationships within the acquiring entity. Embrace their presence and avoid resentment. By doing so, you can position yourself as a valuable contributor to the transition process.

7. Resistance is futile

Instead of fighting the change, strive to influence it positively. Holding onto resistance will only lead to bitterness and frustration. Embrace the transformation and find ways to navigate it effectively.

8. Maintain your commitment, even if your position is phased out

In many acquisition scenarios, employees from the acquired company are incentivized to stay for a certain period. While it may be tempting to go through the motions until you can collect a bonus, consider the impact on your career and professional reputation.

Instead, use this transition to showcase your best work, regardless of the long-term benefits. Take pride in your contributions, even if it involves difficult tasks. Remember that your character, future leadership prospects, and impact on those around you are essential considerations.

Not all acquisitions fail, so approach the process with an open mind.

However, it's crucial to be realistic and be prepared to walk away, knowing that you did your best, regardless of the outcome.