Doug Baird, CEO of New Street Consulting Group, a people advisory firm specializing in team and leadership development, predicts a bright outlook for Mergers and Acquisitions (M&As) in the coming year. Finance and investment banking experts are also anticipating a rebound in M&A activity in 2024 and beyond, driven by pent-up demand for deals, improving economic conditions, and the strategic need for businesses to evolve.
As M&A activity picks up, many boardrooms will be abuzz with discussions surrounding potential deals. However, Baird emphasizes that successfully integrating different entities post-transaction requires a long-term view and careful consideration of people, proposition, and processes. This is crucial for maximizing value and sustaining returns over time.
To ensure a successful integration, Baird suggests taking several key steps. Firstly, providing clarity and retaining impetus by communicating clearly with teams about changes, reasons behind them, and how roles may evolve. A lack of clarity can lead to uncertainty, assumptions, and apathy towards change, which can slow down the momentum of an M&A deal.
Additionally, focusing on building value is essential when merging two organizations. Baird recommends looking at the combination of teams, processes, and propositions through fresh eyes to identify opportunities for synergy and value creation. An agile integration strategy can help in promoting objectivity, fostering a willingness to learn from each other, and driving value creation.
Finding the keys to momentum is another crucial aspect of successful M&A integration. Baird advises breaking down key elements of the acquisition process and taking each stage at pace. This can help in maintaining cultural alignment, informing decisions related to team structure, employer value proposition, branding, and go-to-market strategies, and ensuring that efforts are invested in the right areas to maximize returns.
In conclusion, a staged approach and an agile integration strategy can help organizations focus on building a new, high-performing organization rather than simply merging two entities. This perspective can prevent businesses from losing sight of the strengths that initially drove the M&A deal and help in realizing the full potential of the integration. With the right approach and careful planning, M&A transactions can lead to long-term success and sustainable growth for businesses in the ever-evolving market landscape.
