First impressions really do matter, and the merger and acquisition (M&A) deals that receive a positive reaction on Announcement Day tend to outperform, over time, those deals where due diligence wasn’t practiced up front. Indeed, as Mark Sirower notes, in two-thirds of cases a negative initial reception is a sign that the deal will never gain momentum. What leads to success? Among the key elements is focusing on the employee experience. Smart companies get “ahead of the pain” by acknowledging that during M&A activity workers will have moved from the highest rung of Maslow’s Hierarchy of Needs (self-realization) to fearing for their material well-being, their security, i.e., the lowest, most basic rung of the ladder. In short, at a time of vast, globalized M&A deal-making, emotional intelligence has never been more important as companies navigate the emotional earthquake most employees are going to experience.
Released today: episode #104 of my podcast series “Dan Hill’s EQ Spotlight,” featuring Mark L. Sirower, discussing The Synergy Solution: How Companies Win the Mergers & Acquisitions Game. Click on https://newbooksnetwork.com/category/special-series/dan-hills-eq-spotlight to get to the new episode.
Mark L. Sirower is a leader in Deloitte’s M&A and Restructuring practice and was, previously, a global M&A leader at the Boston Consulting Group. He teaches M&A at the NYU Stern School of Business and has also authored The Synergy Trap prior to partnering with Jeffery M. Weirens on this latest book.