Jonathan Shaw

The People Factor in M&A: Why Early Attention is Crucial

In the complex world of mergers and acquisitions, financials and legalities often dominate the conversation. Yet, the success or failure of an M&A deal often hinges on a less quantifiable factor: people.

Key personnel, from senior leadership to essential team members, can make or break a transaction. Ignoring the human element during the transition can lead to disruptions in productivity, morale, and ultimately, the performance of the newly combined entity. Early engagement with key employees, clear communication of the transition plan, and offering reassurance about their roles and the future direction are critical.

Integrating cultures, aligning leadership, and retaining key talent must be priorities from day one of negotiations. An M&A strategy that addresses the human side of the equation is not just considerate—it’s essential for long-term success. By proactively managing the people aspect, businesses can secure smoother transitions, minimise risk, and lay the foundation for sustainable growth.