Importance of Talent Management 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

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

I've led 17 M&A integrations. Here are the 5 critical lessons I've learned: 1. 𝐋𝐞𝐚𝐝𝐞𝐫𝐬𝐡𝐢𝐩 𝐚𝐭 𝐭𝐡𝐞 𝐓𝐨𝐩 𝐑𝐞𝐪𝐮𝐢𝐫𝐞𝐬 𝐚 𝐃𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐭 𝐌𝐢𝐧𝐝𝐬𝐞𝐭 Traditional leadership development fails during integration. Why? Because uncertainty demands a different kind of leader. Through these integrations, I learned to identify leaders who: • Thrive in ambiguity • Adapt their style instantly • Read situations before they escalate • Drive change without losing people 2. 𝐋𝐢𝐬𝐭𝐞𝐧 𝐚𝐧𝐝 𝐋𝐞𝐚𝐫𝐧 𝐁𝐞𝐲𝐨𝐧𝐝 𝐭𝐡𝐞 𝐍𝐮𝐦𝐛𝐞𝐫𝐬 The true value isn't just in products and revenue. Some of the best discoveries can come from understanding what made the acquired company exceptional in their: • Human resource strategies • Cultural dynamics • Inclusion practices These are often the hidden gems that should reshape the acquiring company, not just the other way around. 3. 𝐈𝐧𝐭𝐞𝐠𝐫𝐚𝐭𝐞 𝐰𝐢𝐭𝐡 𝐇𝐞𝐚𝐫𝐭 𝐚𝐧𝐝 𝐌𝐢𝐧𝐝 Success isn't just about systems integration. It's about: • Seeing the faces behind the spreadsheets • Understanding transferable skills • Creating meaningful roles that honor expertise • Walking in their shoes through the transition 4. 𝐁𝐞 𝐚 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐏𝐚𝐫𝐭𝐧𝐞𝐫 𝐭𝐨 𝐋𝐞𝐚𝐝𝐞𝐫𝐬𝐡𝐢𝐩 I've watched great managers crumble during integration. And seen unexpected leaders emerge from the chaos. Here’s what differentiates: • Challenge assumptions constructively with market intelligence • Balance short-term wins with long-term strategic goals • Support decision-making with clear risk/benefit analysis • Act as a bridge between acquired and acquiring leadership teams 5. 𝐋𝐢𝐦𝐢𝐭 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐃𝐢𝐬𝐫𝐮𝐩𝐭𝐢𝐨𝐧 While integration is complex, maintaining business momentum is critical. Focus on: • Preserving customer relationships • Maintaining operational excellence • Protecting revenue streams • Keeping top talent engaged Through these integrations, I've learned that success isn't written in manuals. It's carved out in moments of uncertainty. The best strategies emerge when we dare to look beyond traditional playbooks. And see the full picture: products, people, and possibilities. 👉 To my fellow Corporate Development and M&A experts: What crucial lessons would you add from your integration experiences? Share them below so we can keep learning from each other.

We aren't seeing a ton of M&A right now, but we are certainly seeing the results of poor integration planning. Far too few buyers come to the table with a clear post-acquisition integration plan, especially on the human resources side. This isn’t just a missed opportunity — it’s a strategic risk. Why integration planning matters: * Culture clashes can kill performance... especially in highly regulated, compliance-driven environments. * Disjointed SOPs and workforce policies lead to operational drag, especially across multi-state operators. * Without a people strategy, you risk losing top talent and morale. Buyers should be asking: * What’s the state of the HR tech stack (payroll, scheduling, onboarding)? Is it scalable? * Are there employee classification or labor risks — especially around hourly roles or contractors? * What’s the leadership bench strength? Who are the culture carriers worth retaining? * Are benefits and compensation aligned and competitive, or will harmonization cause churn? * Is there a clear plan to align org structure and compliance training across entities? M&A without integration is like planting without watering — you might own the asset, but it won’t grow. Let’s stop thinking of HR as a post-close detail. It’s your retention strategy, culture play, and risk buffer — all in one. I would love to hear from folks in cannabis M&A, HR, or ops: What’s working — and what still needs fixing — when it comes to integration? #CannabisIndustry #MergersAndAcquisitions #HRStrategy #OrganizationalIntegration #CannabisBusiness

💡 HR is often the unsung hero of successful M&A transactions With over 10 years of experience leading human capital strategies for mergers and acquisitions, I’ve seen firsthand how seamless integration can make or break a deal. Here are my top three priorities for ensuring success: 1️⃣ Due Diligence Beyond Numbers: Understand the culture you’re inheriting. Talent audits, leadership assessments, survey results, and alignment workshops uncover potential friction before it happens. 2️⃣ Clear Communication: Employees crave transparency (I cannot state this enough!) during times of uncertainty. Partnering with leadership to create a detailed communication strategy is key to reducing anxiety and retaining talent. There is no such thing as too much communication 3️⃣ Culture as a KPI: Integration isn’t just about processes—it’s about people. I prioritize embedding shared values and building trust across teams to ensure long-term success. HR leaders: How do you approach M&A transitions? What have you seen to be most successful? Let’s learn from each other! #MergersAndAcquisitions #HRLeadership #CultureTransformation #ChangeManagement

If you are involved in M&A and your plan for talent starts after the deal closes, you are already behind. Meta's $14 billion AI move helps prove that point. While Wall Street looks at the unique deal structure (Instead of acquiring Scale AI outright, Meta took a 49 percent stake), the PEOPLE play is far more strategic: ✔️ Alexandr Wang, the CEO of Scale AI, is joining Meta to lead their new AI lab ✔️ Several top team members are moving with him ✔️ Meta now has a pipeline to the talent building some of the most powerful AI tools in the market This is not a one-off. It's happening all over tech. ✔️ Microsoft brought over most of Inflection’s team, including its co-founder ✔️ Amazon licensed Adept’s tech and brought in its executives ✔️ Google signed a major deal with Character.AI and added the founders These moves have one thing in common. They are securing people first. Are you planning for people at the start of your deal? Or trying to recover later? #mergersandacquisitions #leadership #peoplestrategy #futureofwork #talentintegration #hrstrategy #mna #aideals #masteryourmerger

The Key to Success in Current PE Investments: Operational Effectiveness In today's market, Private Equity (PE) investments are facing unique challenges and opportunities. To make these investments more successful, the question arises: What is the current driving force behind success—financial engineering or operational effectiveness? While financial engineering has its place, it is operational effectiveness that truly stands out in the current market. Why Operational Effectiveness Matters Focus on Financial Metrics Alone Is Insufficient: While traditional PE firms are focused on hiring executives with proven success on improving metrics like EBITDA, revenue growth, and cost-cutting, these are not the sole factors of success, and the wrong hires can be made (ie: resulting in turnover, poor talent development). Talent Development and Management: A vital but often overlooked aspect of operational effectiveness is talent development and management. Talent is the lifeblood of any organization, and the ability to attract, develop, and retain professionals is crucial. A strong team is essential for realizing the full potential of an investment. Especially when the investment timeframe is longer. Leadership Alignment: Success in PE-backed businesses is closely tied to the alignment between executives and sponsors. This starts with recruitment. The executives and sponsors must agree on the profile targeted before the search even begins. Once in the door, this alignment is not limited to financial targets but extends to shared values, goals, and strategic vision. Investment in Talent Throughout the Organization: It's not only the top executives but also the doers and managers who significantly impact the success of an investment. They are on the front lines, implementing strategies and driving day-to-day operations. Focusing on their development and effectiveness is a fundamental aspect of operational excellence. Collaboration with PE Partners As we collaborate with our PE partners, we find that discussions on leadership styles, executive alignment, and workforce planning are central to achieving operational effectiveness. We provide valuable insights and consulting services that span the entire talent spectrum within an organization. Our emphasis is on nurturing a strong and capable workforce, from the top-level executives to the managers and doers on the ground. In conclusion, we are seeing a lot more focus on talent operations and recruiting process improvement within PE firms. Most of our clients are portcos who are not ready for an in-house talent team, but have a focus on improving recruiting and talent operations, and have a focus on not only hiring a high quality executive but also a high performing team to support them. #privateequity #hiring #perecruiting

Executives often overlook a crucial M&A element. The people side of integration. In the many conversations I have had with CEOs, investment bankers, strategy consultants, and M&A lawyers, the focus is almost always on cost and revenue synergies: how much money can be saved by combining operations, eliminating redundancies, or leveraging economies of scale for growth. While these cost and revenue aspects are critical, they do not tell the whole story. Who is going to do the work to realize these synergies? The true value of an acquisition lies in the people who will drive the work and create the transformation. When I ask CEOs how they decide which c-suite leader to keep from the acquired business,  the typical response is, “We meet the management team, get a sense of their capabilities, and make choices from there.” However, this approach will lack the depth required to ensure that the right people are in the right roles to lead and drive the future direction of the newly formed organization. Wouldn’t it be powerful to have a more complete view of the talent you are inheriting?  A view that includes what we describe as the 4C’s: Career (experience), Capability (competencies), Capacity (potential), and Character (values and ways of working). The question is not just: "How do we merge assets?" Instead, it is: "How do we merge teams to get the ‘best of both,’ and make the acquisition a success?

One of the most valuable lessons I’ve learned in the journey to achieving M&A goals is that it hinges on understanding the people behind the deals. Every integration brings together different cultures, priorities, and ways of working, and those human factors can make or break the outcome. I’ve seen how leaders who take the time to listen closely and ask thoughtful questions uncover hidden challenges like misaligned incentives or communication gaps early on. Addressing these head-on creates trust and keeps teams aligned throughout the integration process. The real work starts after the deal closes, when leaders stay connected to employee concerns and evolving priorities. This ongoing focus on culture and engagement is what empowers a deal to become a lasting partnership. #Leadership #MergersAndAcquisitons #Integration #PeopleFirst #Strategy

PE needs a new talent strategy - great article highlighting the leadership gap in PE. PE had a lot easier time making money in the 80s, 90s and 2000s - leadership excellence not necessarily required. Today, that is far less true with hold times increasing and returns becoming more difficult to deliver on. Leadership excellence is one of the most important levers to deliver value today. I hear of leadership miscues weekly from home service roll ups buying companies and failing to build trust during integration and alienating the entire new company - directly causing significant team turnover. My favorite quote: "A study by the Institute for Private Capital has found that value creation through operations (revenue growth and margin improvement) has accounted for 47% of value creation since 2010, up from 18% in the 1980s, while the value created by financial engineering has fallen from 51% to 25%. Asked which levers are most important for creating value in their portfolio companies, PE executives cite leadership effectiveness more often than anything else—70% more often than they cite operational effectiveness"