Damage caused by post deal vaccuum
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I once worked for an organization that felt it was OK to not say anything to the acquired organization for one month after the deal was announced. When asked why these leaders thought this was a good idea- they said it was because they wanted to business to run as is. All my research and experience pointed out that going in with integration planned as it relates to people and organization is the best way to proceed. It takes the worry out of the people and allows them to do their job. They did not agree. Have any of you encountered this and how did you deal with it?
I think they are making a big mistake. In most industries there are very few secrets. Those employees know something is going on. Their mind is going to travel to a far worse place than the reality more than likely. If the newco knows that you are looking out for them and holding their hand through the transition that is a much better place to be. I agree with you.
Actually, I have seen many cases like this. The truth is that the buyers rarely implements detailed integration plan or synergy creation initiatives at regional/ local country level while they came up with high level integration strategy at global level. Hence these companies leave the acquired organization as standalone until clear instruction is made from their HQ. This is wasted opportunity as they are losing momentum of the acquisition and wasting time to realize the value from the acquisition.
I can echo the opinions here. I have interviewing for PMI jobs and most of the positions sound as if they are entering as an afterthought. One recruiter told me that the integration had been going on in IT for over a year and they were just now getting around to looking a change management leader…ugh.
I think avoiding communication does not make sense… people find out anyway.
I have never experienced that, however, I have often witnessed acquisition with lack of integration plan and total neglection of the executive team after day 1. I believe this is one of the reason why the majority of acquisition fails to deliver the expected benefits.I’ve never been part of this directly, but have seen the post deal vacuum from afar and within my own company. Ultimately, this is not a plan or strategy that benefits with the acquired or the acquirer. I’ve seen this destroy the value the acquirer had hoped to integrate and use to expand business. The best talent jumped ship in both cases and there was little opportunity to create meaningful synergies in one case. The other case the company that was acquired did maintain business as usual, but took twice as long as to use the acquirer’s resources and cause financial difficulties. You don’t need to plan to fail, you just need to fail to plan.
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