8 Top Priorities for a Successful M&A Investment

While it may sound obvious, many organisations jump into acquisitions without a clear understanding of the final outcome they want. Businesses often assume that post acquisition, the acquired entity will simply integrate into the existing business & systems. However, it’s critical to take a step back and ask, what value are we seeking from this acquisition?

• Strategic Alignment: Are you acquiring to expand capabilities, enter a new market, or absorb assets?

• Operational Impact: What existing elements from the acquired company will add value, and what needs restructuring?

• Workshops with Stakeholders: Conduct internal and cross-company workshops to understand what systems, processes, and people should stay, change, or merge.

Tip: Don’t rush the redesign. Similar to renovating a house, live with the acquired business for a little while to see what works (and doesn’t) before making major changes.

While strategic discussions take place, certain technical and operational activities need to start early to avoid delays. This includes things like early stage IT integration (e-mail systems, web sites…) , communication systems, and regulatory compliance. You can split tasks into two streams:

• Infrastructure Setup: Order and size necessary equipment or licenses early, even if plans may change. For example, email addresses and communication lines need to be up and running from day one.

• Business Process Planning: In parallel, develop strategies for more nuanced aspects — such as blending workflows, identifying key talent, and adapting management structures.

Accept that some initial efforts might need to be revisited or discarded. The goal is not perfection from day one, but to avoid bottlenecks.

M&A integration isn’t just about systems and processes — it’s about people. If employees from the acquired company feel disregarded, engagement and retention suffer. It’s crucial to give the acquired business a voice in the integration process.

• Engage Managers and Key Staff: Encourage them to share insights on what worked well in the past and what didn’t.

• Avoid a “Conqueror Mentality”: Make it clear that this isn’t about one company taking over but about creating a stronger, combined entity.

• Unified Teams: Create cross-functional teams from both companies to ensure collaborative problem-solving.

This approach builds credibility and prevents the common mistake of “throwing away good systems” just because they weren’t created in-house.

Acquisitions rarely follow the original blueprint exactly. Plans evolve as unforeseen challenges emerge — like outdated processes or unexpected regulatory hurdles. It’s important to remain flexible and adjust your strategy as needed.

• Continuous Governance: Maintain regular meetings to track progress, align efforts, and communicate changes to key stakeholders.

• Transparency in Planning: Involve leadership in decision-making, particularly when priorities shift or new opportunities are uncovered.

For example, during one acquisition the company initially planned to fully absorb a power generation business but later discovered that half of the operation was better suited for resale. Recognising this early saved both time and money.

Not everything can wait for strategic discussions to conclude. Some tasks with long lead times — like ordering equipment or securing software licenses — must begin early, even if the final strategy is still in flux.

While adjustments might be necessary later, these iterations are part of the process. As long as the focus stays on the bigger picture, tweaks and refinements along the way won’t derail the outcome.

If your organisation lacks experience in M&A or the scope of the acquisition is beyond current capabilities, bringing in outside consultants or specialised teams can be a game-changer. Experienced consultants offer frameworks and methodologies to guide the process. However, success requires collaboration between the internal and external teams.

• Avoid an “Us versus Them” Mentality: Work to integrate consultants and in-house teams to co-create solutions.

• Manage Politics and Perception: Make sure external teams are seen as partners, not outsiders imposing change.

Even with outsourced expertise, expect a learning curve. As each acquisition is unique, flexibility and adaptability remain essential.

Many of the pitfalls in post-acquisition phases stem from rushed or incomplete pre-acquisition assessments. Conducting thorough due diligence — especially in IT and operations — is essential.

• IT Assessment: Verify the condition of the acquired company’s systems, equipment, and software to avoid surprises later.

• Operational Review: Understand the workflows, processes, and key people driving the business.

The earlier you spot discrepancies or hidden costs, the better you can plan for them. However, even the most thorough pre-acquisition review won’t eliminate all surprises, so be prepared to pivot as needed.

Acquisitions come with high expectations from leadership, investors, and employees. A clear communication plan helps set realistic expectations and maintain stakeholder confidence.

• Regulatory Compliance: Prioritise tasks required by law or regulatory bodies to avoid fines and penalties.

• Regular Updates: Provide frequent updates to the board and key stakeholders on progress and challenges.

• PR and Internal Communications: Ensure messaging aligns across the combined entity to promote unity and engagement.

Managing expectations reduces friction, especially when initial assumptions prove unrealistic. In some cases, delivering a reduced but well-executed outcome may be more valuable than meeting unrealistic targets.

A successful M&A investment  requires more than just signing contracts and merging systems. It demands thoughtful planning, people-centric leadership, and the flexibility to adapt when things don’t go as planned. By defining clear outcomes, running parallel workstreams, engaging employees, and adjusting strategies along the way, businesses can unlock the full value of an acquisition. And with external expertise where necessary, you can bridge knowledge gaps and ensure a smoother transition.

The key takeaway: slow down, listen, and learn from the process. Each acquisition is unique, and the best outcomes come from thoughtful integration — not rushed execution.