Reducing the pain in the M&A process

Are you a leader or manager who is involved in an M&A?  Are you feeling overwhelmed? Isolated? Unsure? No time to stop and think? Trust me, you are not alone.

The M&A market is buoyant, building on the momentum that started during 2014 as organisations look to drive growth and generate value through M&A activity. And the deals are becoming increasingly complex.

“The world is changing and businesses continually need to evolve their offering to clients. They are looking to develop themselves by going into new geographies, technologies and markets, and that is driving demand for M&A.”

– David Blois, Managing Partner at M&A Advisory

 Yet current data suggests that around 50% of deals fail.  How do you make sure you’re in the 50% which succeed? According to a KPMG study, senior executives interviewed cited the main cause of failure as ‘people and cultural differences’.

The importance of the human element where relationships, culture, politics, power and emotion can make the difference between success and failure in a M&A deal is increasingly recognised.(HBR) Best practice projects now incorporate this human dimension into due diligence and integration work streams from the outset.

So far, so good.  But what about the impact of an M&A on the individual, whether they are in a leadership or managerial role? For some, it’s a period of frenetic activity; for others a sense of being ‘in limbo’ until decisions are made about the new organisation and their place in it, and the discomfort of not being in control of their destiny.

It may feel counter-intuitive in such a fast paced environment as an M&A, but it’s a good time to invest in individual coaching during this period of uncertainty.

For leaders, coaching offers a safe space to reflect, creates a sense of calm and the opportunity to clarify thinking in a non judgmental environment - important during a time high on energy and fraught with a win-lose mentality.

Managers are able to raise anxieties and concerns, unpick emotions, garner their internal resources and build up resilience. Both leaders and managers need to be strong for themselves and for others as they set the course for the future.  Authenticity is key in communication – this is a time to be open and honest.

I have been on both sides of the fence as a leader  – working for organisations which have acquired, and have been acquired. This personal experience, together with that of my colleagues during this process has had a direct influence on my certainty of the added value that coaching brings at this crucial time.

Coaching will put you in the position to make better decisions and deliver clearer communication – with a stronger chance of being in the 50% of M&As that succeed.

If you are a leader, a manager or an organisation about to embark on an M&A, or working your way through the process, please get in touch for a discussion about how coaching could help you.

I am the founder of The Executive Coaching Partnership based in London. My experience in the professional services sector informs my coaching approach, helping leaders and organisations through periods of transition.