What Should You Consider to Develop Your Talent-Post Acquisition?
As the old adage goes, an organisation is only as good as its people. This is especially true during the acquisition process and managing your talent throughout an acquisition should not take a one-size-fits-all approach. According to LinkedIn research, 87% of active and passive candidates were open to new job opportunities. A pending acquisition can make the decision to leave easier for many people, so making sure you have plans in place to develop talent after the acquisition is important.
Consider Company Culture
When AOL purchased Time Warner for $165 billion in 2000, it was the largest merger in history. However, major clashes between company cultures ultimately led to the deal’s demise. Former AOL CEO Tim Warner said of the deal, “Having a good idea is important, but being able to execute the idea is even more important, and that comes down to people and priorities, and we were unable with the combined AOL Time Warner company to get that side of it right”.
This deal spotlighted some valuable considerations. Understanding the cultural differences between your acquirers and your own company is critical. It is necessary to consider how the cultures of the two companies will merge. What values does your acquirer emphasise? Do they align with your own? Do they place a high value on their employees? What is the nature of their decision-making and leadership styles? Do these correspond to your own?
Understanding your acquirer’s culture will help you determine whether or not it will merge with your own. Perhaps it will provide you with a fresh perspective that you had not previously considered. By ensuring that your teams work well together, you’re able to collaborate with leadership to foster a culture centred on the development of your own talent.
Invest In Your People
According to Bain & Company, 38% of M&A practitioners cite talent retention as a key driver of M&A deal success. At Volaris Net Europe, we understand that investing in your people is critical to long-term success.
Acquirers should work with you to build talent plants that ensure your chosen team can meet both your company’s and their own future goals. Talking with your acquirer about what tools you’ll have to truly develop employees and provide them with training materials is an important consideration.
Achieving Your Own Professional Goals
If you wish to stay with your business post-acquisition understanding your place within it is important. Consider your personal and professional goals, and work with your acquirer to ensure they are clear. At Volaris Net Europe, we develop our employees and give them opportunities to advance within the company. In fact, 74% of our current business leaders were in place at the time of acquisition or were promoted internally.
Perhaps the acquisition will provide you with new opportunities and responsibilities that you had not previously considered. Alternatively, if you decide not to stay with the company, it is equally important to discuss your own professional goals and timeline and know your acquirer understands these.
Acquisitions provide numerous opportunities for your company, but it is also critical to ensure that your employees benefit. Mismanagement of talent during the acquisition process can have a significant impact on even the most straightforward sale. While envisioning your organization’s long-term goals is critical, doing the same for your people is equally important. By considering the above, you can be confident that your team’s best interests will be served following the acquisition.