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Note: The views and opinions expressed here are those of the authors and do not necessarily reflect the position of the Morris County Chamber of Commerce.
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MCCC Blog |
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Note: The views and opinions expressed here are those of the authors and do not necessarily reflect the position of the Morris County Chamber of Commerce.
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The Hidden Risks in M&A
I’ve seen talented leaders burn out, key employees walk away, and cultures clash, not because people weren’t capable, but because no one asked the right questions early enough. In the rush to close a deal, leadership teams often underestimate the human factors. Questions like “Will these two teams collaborate effectively?" or “How do their leadership styles differ?" can go unasked until it’s too late. The result? Confusion, disengagement, and loss of key talent right when stability is needed most. Early HR due diligence helps uncover these risks before they become problems. By assessing leadership strengths, communication styles, decision-making approaches, and cultural values early in the process, companies gain insight into how well the two organizations will truly fit together. What HR Brings to the Table An experienced HR team can help guide the M&A process beyond legal and financial terms. Key contributions include: - Leadership assessments: Identifying leadership styles to align roles, before roles and reporting structures are finalized. - Cultural analysis: Understanding what motivates and unites each organization so leadership can blend cultures thoughtfully. - Change management strategy: Helping employees navigate uncertainty through communication, empathy, and clear direction. - Retention planning: Protecting key talent who are critical to post-merger success. When HR is involved early, these insights inform smarter decisions and smoother transitions. The Cost of Waiting Too Long Waiting until after the deal closes to involve HR often means playing catch-up. Leaders must then address misaligned expectations, communication breakdowns, and disengaged employees who feel left out of the process. By that point, the cultural damage can be hard to repair. M&A success depends on more than the right business fit, it depends on leadership alignment and a shared vision for the future. HR’s involvement from the start helps ensure that the “people side” of the merger gets the same attention as the financial side. Bringing People Into the Equation At Crothers Consulting, we believe early HR involvement transforms mergers from transactional to transformational. By focusing on leadership and culture early in the process, organizations can build trust, maintain engagement, and set the foundation for lasting success. When people feel seen, heard, and valued during change, they’re far more likely to stay, and thrive, in the new organization that emerges.
1 Comment
10/30/2025 07:45:09 pm
I can't agree more! I've seen a number of mergers / acquisitions over the years. Many struggle not because of the strategy / synergy but because of the people piece. It can be a "turf issue, cultural differences, communication issues, etc. If these things are vetted prior to doing a deal, the deal may not be done, but that may be a good thing in the end.
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Please Note: The views and opinions expressed here are those of the authors and do not necessarily reflect the position of the Morris County Chamber of Commerce.
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