May 6, 2016

The human face of an acquisition [Video]

If merging companies do not acknowledge the human side of a massive M&A, they will encounter problems. As many mergers in the tech industry today involve the melding of ideas and innovations, the human component of these deals is critical for success. To avoid driving away employees during an acquisition, communication is key.

Companies that inform their employees of an impending merger too soon risk losing workers who may feel that they need to seek out other job opportunities soon. Meanwhile, those that tell them too late may encounter significant pushback or hard feelings during the process. Telling high-ranking managers first and eventually informing lower level employees later on will make the process easier for all involved.

Whenever faced with an M&A deal, employees’ first thoughts are about what it means for them. Being straightforward about how their job responsibilities, pay, benefits, and outlook will change from the start will avoid any confusion.

Overall, remembering that employee communication is key during an acquisition will keep any high-profile merger on track for success.