M&A integration management (pt. 2)
When it comes to M&A, too often companies spin the wheel and hope for the best. But here’s the difference: integration is a lot more like blackjack than it is roulette. You can execute a smart strategy that “stacks the deck” in your favor more often than not. Tilt the odds toward success with the right culture fit, clear communication, and intentional integration.
In one acquisition, the top Loan Officer cared most about underwriting, but the acquiring company’s pitch? “Better tech and economies of scale.” It didn’t resonate. After a few weeks of struggling to get him excited about the acquisition, we introduced him to the Head of UW at the acquirer’s company. She is an absolute powerhouse, and after one conversation with her, his entire mindset around the acquisition turned around. The acquiring company already had what he wanted, but they needed to listen first, pitch second. That’s the difference between playing smart and playing blind.
Positioning matters. An agile luxury lender, acquiring a discount lender with rigid, centralized systems is an uphill battle. Some producers thrive in a credit union model; others want to make 150 bps at an IMB doing standard loans. Neither is wrong but misalignment leads to attrition, not integration.
What is universal is that every acquisition brings hidden resistance to change. If employees feel like they’re leaving a “hot” table for a “cooler” dealer, they’ll scatter. They need to see a winnable game within your company, so give it to them early and often.
Culture beats tactics, every time. It’s the most resilient force in any system. If you fail to deliver real value, to “stack the deck”, or to make the right strategic moves, the deal value will erode and your legacy team will burn out.
Acquisitions don’t fail at closing. They fail in integration. So don’t gamble, work with an expert to create a winning strategy. Play the right game and stack the deck where you can. Shift the odds in your favor before you play the game.
Julia Brown is an M&A and integration professional.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.
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