5 Guiding Principles for Navigating a Company Acquisition
I vividly remember the day I found out my organization had been acquired for $4B. Sure, acquisition rumours had been flying around for many years, but I was still shell-shocked when it happened. The company acquisition news got leaked to the press first thing in the morning. I got up from my desk, quietly closed the office door, and stared blankly at my screen, wondering what this meant for my career, team, and customers. I went through a gambit of emotions. Shock, panic, excitement, adrenaline. I was managing the data analytics group at the time, and it was up to me to address the team. I quickly gathered my thoughts, jotted down some notes, and corralled everyone into a small meeting room.
Multi-billion dollar acquisitions are rare. Since 2000, the average company acquisition value has been $72M. Being a part of a $4B acquisition was a once-in-a-career opportunity, and it was clear that our team was going to play an important role in the acquisition process. A lot of data would be required to get through the rigorous regulatory process. As the team squeezed into the tiny meeting room, I could sense a wide range of emotions and a high level of anxiety (including my own). Once everyone had a chance to voice their concerns, it was my turn to say a few words. In my notebook, I had written down the following talking points:
- Stay calm.
- Stay engaged.
- Learn and adapt.
- Be open-minded.
- Stay informed.
These guiding principles served us well during the acquisition process. In hindsight, I would slightly modify the principles and add more context if I addressed the team again.
Stay calm, and don't panic.
It is important to remember that an acquisition is likely a positive development for the company, and it will bring new opportunities and resources that can help a company grow and succeed. When Amazon acquired Whole Foods in 2017, the grocery chain struggled to compete and faced pressure to improve its performance. Amazon was able to leverage its expertise in supply chain management and e-commerce. Amazon introduced new technologies, such as cashier-less checkout and online ordering, to improve the customer experience and also used its purchasing power to reduce prices on many products. The acquisition was a win-win for both companies. It allowed Amazon to expand its bricks and mortar presence in the grocery business and access troves of valuable data. Whole Foods benefited from the resources and expertise of its new parent company.
Stay engaged, and show value.
Navigating change is hard. It is important to embrace change and live in the present moment rather than trying to resist or avoid it. British philosopher and writer Alan Watts said, "The only way to make sense out of change is to plunge into it, move with it, and join the dance." Stay engaged and continue to perform well in your role. This will help to demonstrate your value to the larger company and increase the chances that you will be able to continue working with them.
Learn and adapt.
Make an effort to learn about the larger company and understand its culture and business practices. This will help you adapt to the new environment and position yourself to take advantage of any opportunities. Don't be afraid to ask your new colleagues questions; they can provide valuable insights and information. Read the company's mission and vision statement to better understand its goals and priorities. Even better, if it's a publicly traded company, listen to the last few quarterly investor calls to identify pain points, opportunities, and recent successes. If nothing else, be attentive and observant about how things are done and ask for feedback on your work to ensure that you meet the company's expectations.
Be open-minded and find the opportunity.
Perhaps the most insightful statement about change came from Heraclitus, a 6th-century BC Ancient Greek philosopher. Heraclitus is best known for his philosophical views on the nature of change, which are captured in his famous quote, "Change is the only constant in life." After an acquisition takes place, there may be new opportunities for employees. You may get a chance to work with new talented colleagues and learn new skills. Career advancement or promotion within the larger acquiring company may be possible. You may get to work on new and exciting projects. In some cases, it's important to acknowledge that acquisitions can lead to job losses or other negative outcomes. Employees should be aware of the potential risks but not be blinded by them so they can't see the opportunities.
Stay informed and connected.
Make sure you read all of the company's internal communications. Create a habit of checking in with your manager and HR representative to keep track of any changes or updates related to the company acquisition. Ensure that you clearly understand your role and responsibilities going forward. This helps to provide a smooth transition and position yourself for success in the new company. John Kotter is a renowned leadership expert and author who has written extensively about the importance of communication in change management. Kotter emphasizes the importance of clear and consistent communication. During an acquisition, all communication is important. You can't effectively navigate change if you do not stay informed.
