As businesses seek growth and expanded market reach, many turn to mergers and acquisitions, including accounting firms. At The Bonadio Group, we’ve successfully navigated more than 20 mergers in the last 27 years and learned valuable lessons from each one.
I recently joined The Upstream Leader Podcast and sat down with their host, Heath Alloway, to discuss what I learned about mergers and acquisitions. We chatted about leading successful mergers, fostering integration, and building team trust. For organizational leaders considering M&A activity or those looking to improve their M&A processes, I believe Heath and I touched on some invaluable insights in this discussion that may address some of your questions or pain points.
Here are five of my key M&A insights discussed in our conversation:
- Mergers and acquisitions are an art, not a science—there’s something to learn from each one. Although they’re not a science, there has to be a process, including vetting merger candidates, speaking with their leadership, and conducting due diligence.
- When considering a merger or acquisition, it’s key for the cultures of the two organizations to be a good match. Leadership from each company should spend a lot of time getting to know each other and seeing if the organizations are a cultural fit. Sometimes, you may come to a crossroads and know that it isn’t going to work, and that’s okay.
- The integration period is the most critical—anybody can finalize a deal. Still, you have to spend a lot of time with a merged firm and its leadership, interacting and hearing what’s going well and what they’re frustrated about. Several times, I’ve seen firms do a merger that falls apart at the integration stage. The merger doesn’t stop after it’s been announced; that’s just the beginning. It typically takes two years to feel like the two organizations have entirely integrated.
- You know a merger succeeds when you come together and improve each other. In our history of mergers and acquisitions, we’ve joined with firms with exceptional talent, leadership, and relationships in their market, which has made The Bonadio Group better. In turn, we have a wealth of resources and expertise, which makes the members of the new organization and their clients even better. It’s all about finding a win-win situation for both organizations and making one plus one equal much more than two.
- Historically, mergers and acquisitions have brought many fears and anxieties to the organization that is being merged or acquired. Over time, I’ve found that the best way to work through those fears and emotions is to sit down one-on-one with each new member of the merged organization and learn about their passions, interests, and what they’re looking for in their new role. You have to spend a lot of time understanding what this change means for them to make it a positive experience for all.
To hear more M&A insights, please listen to the full podcast episode or read the transcript. Additionally, if you’d like to discuss your specific M&A situation or concerns, our experts are here to help contact us.
This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Should you require any such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute, an accountant-client relationship.
