The Power of People: Driving Growth Through Post-Acquisition Focus
Acquisitions are a common strategy for businesses aiming to expand market reach, diversify offerings, or gain a competitive edge. However, the true potential of an acquisition lies not just in the financials and synergies but in the people behind the acquired company.
Retaining and engaging talent
One of the most critical assets in any acquisition is the acquired company’s talent. They possess valuable knowledge, experience, and relationships that contribute to company success. Retaining and engaging this talent is crucial to harness their potential and drive growth.
Communicate openly with the acquired employees, addressing their concerns and emphasizing shared vision and goals. Providing a clear path for career progression, offering training and development opportunities, and recognizing their contributions can foster a sense of loyalty and commitment. Engaged employees are more likely to go the extra mile, innovate, and contribute to company growth.
Cultural integration
Successful acquisitions go beyond financial and operational integration — they also focus on cultural integration. Recognizing and respecting the acquired company’s culture and finding ways to blend it with the acquiring company’s culture is vital for a smooth transition.
Cultural alignment helps build trust, enhances collaboration, and promotes a sense of unity among the two organizations. Involve employees from both companies in the integration process, encouraging open dialogue and valuing diverse perspectives. By creating a shared culture embracing aspects of both organizations, the newly formed entity can leverage the strengths of each and drive growth synergistically.
Empowering and collaborating
Empower employees by providing them with autonomy, decision-making authority, and the resources they need to succeed. Encouraging a culture of innovation and risk-taking can unlock an organization’s enterprising spirit.
Fostering collaboration across teams and departments can lead to cross-pollination of ideas, knowledge sharing, and increased efficiency. Breaking down silos and promoting a collaborative environment allows employees to leverage their collective experience and drive growth through joint efforts.
Leadership and communication
Effective leadership plays a pivotal role in driving growth after an acquisition. Leaders need to articulate a compelling vision for the future, inspire and motivate employees, and lead by example. They should be transparent in communication, providing regular updates on integration, milestones achieved, and future plans.
Open and honest communication helps alleviate uncertainties, builds trust, and allows employees to feel valued and informed. It also provides an opportunity for employees to provide feedback, share concerns, and contribute ideas to shape the company’s future.
How we can help
From attracting and retaining talent to helping you grow your people, CLA’s industry-specialized professionals can provide a seamless experience in building comprehensive HR strategies and processes that work for your organization.
While financial and operational considerations are crucial in the acquisition process, focusing on people is equally important for driving growth. By retaining and engaging talent, integrating cultures, empowering employees, fostering collaboration, and providing strong leadership and communication, organizations can unlock the full potential of an acquisition.
Craig Arends is a principal at CLA and is the managing principal of CLA's private equity practice. Craig brings a concentration of experience in providing accounting and transaction structuring advice for leveraged recapitalizations, purchase accounting and SEC reporting, assessing quality of earnings, and GAAP accounting. He has far-reaching experience with critiquing financial models and reviewing target companies' financial performance to identify cost reductions and/or operating efficiencies Craig has more than 30 years of experience in public accounting serving public companies, private equity groups, and companies, including a term as principal in charge of a Big Four Capital Markets Group in Moscow, Russia. He has led financial accounting due diligence projects for private equity investor groups and venture capital funds, primarily in the technology, communications, and manufacturing industries, as well as assisting with Foreign Corrupt Practice Act matters ranging from investigation of payments made, validation of compliance with corporate policies, and review of proposed transactions to ensure compliance. When not working, Craig enjoys watching any sports, but his most favorite are baseball, football and soccer.
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