5 make-or-break moments that shape the success (or failure) of Mergers and Acquisitions
Analysts say 2025 will be the year that the multi-trillion-dollar Mergers and Acquisition floodgates will open once again. For us at BTS, these key moments are an exciting opportunity to witness how strategy, culture and leadership play together.
Mergers and acquisitions (M&A) represent some of the highest-stakes decisions an organization can make. Analysts scrutinize billion-dollar deals, executives promise ambitious synergy targets, and employees at all levels must adapt to new realities that are often thrust upon them. The success of your integration doesn’t just depend on strategy—it hinges on the ability of thousands of individuals to embrace new teams, tools, structures, and ways of working.
The human side of integration is often underestimated, yet plays a crucial role in the success or failure of mergers and acquisitions.
| Recent research shows that 70% of successful M&A deals involved a proactive approach to managing cultural differences.
Why? Beneath the surface, overlooked factors such as differing beliefs, cultural tensions, and a lack of real strategic alignment often derail even the best-laid plans. From years of guiding organizations through these transformations, we’ve identified five make-or-break moments that define whether an acquisition thrives—or falls short.
1. The “first impression” moment
When two companies come together, senior leaders often reduce first impressions to oversimplified assumptions: “They’re just like us” or “We share the same customer-first mentality.” While these statements may calm initial concerns, they often ignore deeper operational and cultural differences that can create friction later.
An example: A communications company acquiring a company of similar size to expand their portfolio and reach. Both claimed to be “customer-centric,” but their definitions were fundamentally different. The organization being acquired prioritized the customer no matter the cost, while the acquiring company prioritized the customer within clear economic boundaries. This subtle but critical difference nearly derailed key decisions in customer crisis moments, where both organizations’ approaches clashed.
At BTS, we’ve seen success when organizations use a more thorough and objective culture diagnostic early in the M&A process to get ahead of possible differences like these, surfacing how work actually gets done, rather than providing a commentary on employee sentiment. Differences can then be worked through proactively before real customer value is on the line.
2. The “communicating the deal rationale” moment
Acquisitions are ripe with uncertainty, especially for employees of the acquired company, who often fear layoffs or cultural upheaval. Without clear communication of the reasons behind the merger, mistrust can take root, damaging morale and productivity.
An example: An oil and gas company learned this the hard way during its acquisition of a smaller regional competitor. Despite leadership’s intent to streamline and grow operations in the region, employees of the acquired company assumed the deal was purely to squeeze out cost and sell it to the highest bidder. Distrust spread quickly, undermining cooperation and progress.
Another example: In contrast, a technology company that made a large acquisition took a radically transparent approach. Leaders engaged employees from both organizations early, co-creating a narrative that focused on shaping the future together and emphasizing shared innovation goals. By addressing concerns directly and collaboratively, they built buy-in and enthusiasm on both sides, setting the stage for a seamless transition.
3. The “bringing senior teams together” moment
Initial meetings between teams from merging companies are often fraught with tension. Often, the bias many leaders have towards action leads to a singular focus on tactical planning—hammering out integration checklists and deliverables—while overlooking the human dynamics in the room.
An example: In one case, two food and beverage companies merging to take advantage of their complementary product portfolios approached their first meeting with a different focus. Instead of diving straight into strategy, the leadership teams spent the first day exploring cultural alignment, discussing their values and histories, and building personal connections.
This intentional shift paid dividends. As one CEO later remarked, “If we hadn’t started with the culture and leadership conversation, we never would have made so much progress on our strategy.” By fostering trust and understanding, the two teams created a foundation for productive collaboration and accelerated progress on their shared goals.
4. The “let’s activate new ways of working” moment
Senior leaders can align on a vision, but translating it into daily actions across thousands of employees is where integrations often stumble. Over-reliance on one-way communication—announcements and emails—leaves employees unclear on how to work together.
An example: A biopharma company that acquired a tech firm to enhance patient outcomes was clear about the rationale for the acquisition, but did not spend enough time working through what this combined organization would look like in execution. Two years later, both organizations were still operating as two separate units, unable to deliver on their shared vision.
Another example: In contrast, a global manufacturing company took a proactive approach during its acquisition. Leaders hosted cross-functional workshops, guiding employees through real-world collaboration scenarios. These sessions surfaced key operational gaps and helped teams align on practical ways to achieve their vision. As a result, integration accelerated, and the combined teams quickly launched a suite of new, co-developed products.
5. The “turning resistance into momentum” moment
As an integration progresses, some organizations try to quickly get to “business as usual”. Senior leaders, who typically have had more time to get ‘on the bus’ of the integration are often keen to move on from the integration. While this impulse is understandable, the challenge is that ceasing to pay attention to evolving dynamics and culture challenges can cause leaders to ignore small signals that can ultimately foreshadow bigger problems. Indeed, proactively seeking out and engaging with resistance can unlock new potential for growth.
An example: Consider a software company that acquired a cloud-services provider to expand its portfolio. Early friction arose as teams struggled to reconcile their differing approaches to customer support. Instead of letting the tension fester, the leadership teams paused, brought the issues to the surface, and co-created a new customer engagement model.
By openly addressing challenges and aligning on shared practices, the companies not only resolved their differences but also built a stronger, unified approach. Without this intervention, the integration could have been frustrated by years of lingering inefficiencies and resentment.
Greater than the sum of parts: Achieving success beyond the merger
M&A deals are extraordinary opportunities to accelerate growth, redefine industries, and create lasting value. But the statistics don’t lie: up to 90% fail to meet expectations. The difference often comes down to overlooked intangibles—cultural alignment, trust, and the willingness to navigate tough conversations.
The organizations that succeed understand this. They don’t just manage checklists; they embrace the human elements of integration. They foster trust, build alignment, and co-create a shared future.
The real value of M&A lies in these make-or-break moments. When leaders approach integration with intentionality and openness, they unlock the potential for their organizations to be truly greater than the sum of their parts—and deliver on the promise of the deal.
