Every announcement of a merger or acquisition comes with discussions about the trends and forces that shape M&A activity, the way valuations and deal structures have evolved, who might be next and what’s in store for the future. I would love to see more open conversation about what M&A is actually like from the inside.
As I write this, Brinker Capital is about half a year past the close of its merger with Orion Advisor Solutions, and we’ve just welcomed the entire team at HiddenLevers to Orion. Mergers like ours are about bringing people together, not warehouses of inventory. We work in an industry rich in intellectual capital, and it takes hard work, patience and humility to find the way forward when you have suddenly become part of a much larger team. I’d like to share what I’ve learned along the way.
Trust Doesn’t Happen Overnight
Even when M&A is done right, and the two companies align with one another from top to bottom, there is still a period of time when everyone feels like they’re walking on eggshells. No deal can manufacture trust out of thin air. It has to be earned.
When I talk about trust, I don’t mean the people in the merging businesses actively distrust each other. You simply have no context or prior relationship with your new partners. You have to learn how to listen and communicate all over again in order to build a foundation for trust to grow.
Where You’re Headed Is Not Where You Are, And That’s OK
One of the first things you’ll hear in a newly-merged business is a mission statement or some other declaration of shared vision. Here’s the secret: those statements show what you and your new team aspire to be when the dust settles and everyone gets back to running on all cylinders, not what you actually are right now.
It’s important to be real about the disruption and sense of displacement that comes at the beginning of a merger. No one is working at their best right away. Everyone needs some space to come to grips with change. It is completely valid to look at a mission statement and say, “This isn’t even close to where we are right now.” The idea is to delineate the destination so you can chart the proper course.
COVID-19 Has Made Everything Weird
I often wonder how the pandemic and remote work have changed the day-to-day realities of M&A. Does it take longer to build new team relationships because of the absence of watercooler chats? Even months after the close of our merger, I still feel like I’m meeting people for the first time every other day.
Life in a merging business can feel surreal without tangible signs of change. There are no in-person ice-breakers, no fresh paint or new logos on the walls. Your home office probably looks no different than it did before the merger.
It helps to remember you aren’t alone. Every change in a merging business matters to someone, whether it’s a new org chart or just a new email signature. While your mission statement is a rallying point for the future, the weird, shared experience of COVID-19-era M&A is what unites you right now. You and your new coworkers may have different ways of getting things done, but at the end of the day, you’re all working toward the same goal.
Noreen D. Beaman is the president of Orion Advisor Solutions.