Ridiculous Rose's Guide to surviving M&A

Ridiculous Rose

Her Mama said,
“Don’t eat with your fingers.”
“OK,” Said Ridiculous Rose, 
So she ate with her toes!  -Shel Silverstein – Where the Sidewalk Ends

That’s the approach companies take towards mergers and acquisitions! How else would you explain the fact that despite failure rates pegged between 70 percent and 90 percent, it still happens! 

Maybe our Ridiculous Rajas and Ranis of business, have a reason to jump in with the single-minded focus of a blinkered horse racing to the finish line. Even the chance of succeeding 10 percent has enough allure to drive them! 

I am not going to advice the business Rajas and Ranis, as they probably only listen to advice that comes with a million dollar bill and a shiny suit! I would love to share some thoughts for us bottom and middle of the pyramid denizens who will anyway hurtle through many mergers and acquisitions in our professional careers! 

Accept it: It is like death — when it is done, it’s done! No point fighting it. The world as you know, is over. Grieve for the loss, but celebrate it too. Whatever you do, ACCEPT that it is a new way. Not a good way, not a bad way just a new way! 

New Job: Treat it with the same enthusiasm that you will if you were starting on a new job. I found it helpful if I turned the knobs in brain figuratively to learn and survive mode. Coast Mode, Comfort mode ain’t going to work. 

Shut Up: Any change brings in uncertainty, makes us insecure, insecurity drives us to the water cooler. Watercooler for comfort is good but watercooler for survival is not. Don’t be drawn into gossip, but don’t stay away from it. Hear them, evaluate them but don’t act on them or add to them. Don’t retreat to your shell or be the center of the watercooler gossip; just do it enough to salve your insecurity and understand what is happening. 

Decide and Act on it: Make a decision – Stay or leave, make up your mind and act on it. If you chose to stay, stay positive and act like this is a new job, give it all you got. If you chose to leave, start looking out, be discreet and when you get a job, leave with grace. If you chose to stay, make a commitment and make it work, if you chose to leave, be gracious, remember the company is still paying you. 

The tougher part is for companies and new executives to manage a new entity coming on board. A few tips for companies:

You wanted it, remember: You are buying the asset, because you want it to show that. There’s a reason you entered the transaction, always remember that and treat the new asset and its employees as welcome partners rather than unwelcome guests to your Diwali party!

Gracefulness will go a long way: Hey, you will find that things don’t work well, they are different, they are inefficient, don’t keep harping about them. Acknowledge what is good and graciously change what’s not working. No point beating a dead horse. 

Be decisive: New assets, employees look for clarity and purpose. Provide it, cut the deadwood upfront; finish all the not nice work of firing, changing etc. in the first 3 months so the company can focus on its customers. 

Talk to them: Let your world of employees, suppliers and customers know why you bought, merged and keep updating them on what’s happening. Good and bad – the first year after a change, there is uncertainty and insecurity. Transparent, frequent communication will help tremendously and provide your stakeholders a viewpoint other than what they hear around the water cooler. 

Acquiring, being acquired, merging, merged and will all happen. Hopefully, this nugget will prepare you better to manage this both as an employee and management. 

If it doesn’t work, we always have Shel Silverstein and Ridiculous Rose.