Shoulda, Coulda, Woulda: Reminiscing on M&A Activities and How Navgar Could Have Made Them Better
In a recent bull session among my colleagues, we delved into moments in our professional journeys when having Navgar at our disposal would have been a game-changer. The responses varied, reflecting the diverse needs of our roles. Our Product Designer mused about the benefits of Navgar for efficient meeting management. Our Quality Assurance Specialist recalled the times when a previous small business experience was plagued by tasks slipping through the cracks—a situation where Navgar's capabilities would have been invaluable. Our Head of Product chimed in, noting how Navgar could have streamlined the process of managing contractors. Even Jose, our CEO, shared his perspective, envisioning Navgar as a modern alternative to the cumbersome paper processes that hindered efficiency within a large international conglomerate. As for me, my thoughts gravitate towards Navgar's functionality intertwined with the complexities of Mergers and Acquisitions (M&A).
In my professional journey, I've been through seven mergers and acquisitions in various states of completion and filled different roles in the overall processes—an experience that has inadvertently molded me into something of an inadvertent “expert” in the field (this is written with tongue fully in cheek). Having been on both sides of completed deals, it's no secret that the dynamics differ. It's an unspoken truth that entering as an agent of the acquiring party is, while no less intense, distinctly different and, dare I say, less tumultuous. Alongside experiential knowledge, I've morphed into a curious student of the M&A landscape.
The entrance to M&A territory is a threshold fraught with challenges, particularly on Day One—the moment when access to the acquired organization's systems and personnel becomes a reality. But let's not go there just yet. It's worth considering the seeds of M&A failures that can be traced to their very beginnings. A plethora of reasons can stall a deal before it's even sealed: legal entanglements, failure to reach agreeable terms, and communication breakdowns can sabotage even the most promising deal - and not all actors operate in good faith. Effective due diligence, when carried out accurately and objectively, can act as a safeguard against inking a pact that's destined to falter. However, once a deal is struck, hasty due diligence—often related to financial matters and valuation—can spell a similar fate. The absence of a clear strategy and shared vision after the deal is sealed is akin to a dog that finally catches the ice cream truck—momentarily exhilarating but inevitably perplexing. Factors like market dynamics and economic shifts lie beyond my sphere of expertise and influence and thus remain uncontrollable variables.
My immersion in the M&A realm has exposed me to two critical spheres: Culture and Integration. Were I to be granted more upfront control over M&A proceedings, I'd ardently recommend negotiating comprehensive cultural assessments of the target organization—conducted by an impartial third party—as part of the due diligence process. The potential for a struggling company ripe for takeover to possess a weak internal fabric is all too real. Often, key talent and institutional knowledge hastily flee, leaving essential roles vacant and the workforce unsettled. In one instance, I emerged as an agent of liberation from the heavy-handed management of the previous regime. Conversely, in another scenario, an entire department abruptly resigned before the ink dried on the documents. The stark reality is that the reception one receives post-acquisition is a proverbial toss-up.
Common decency, dictates the need to extend empathy towards the acquired employees and acknowledge their achievements. It’s also a vital tactic. The sale process can exert immense pressure, pushing the company to function at or above capacity to present a façade of prosperity before the deal closes. While no single individual can represent an entire organizational culture, the initial impressions made by representatives of the acquiring entity tends to leave indelible marks. Stress is the common denominator on Day One, leveling the playing field for all parties involved.
Had Navgar been at my disposal during Integration on Day One of these M&A scenarios, the ensuing days and weeks would have unfolded far more smoothly. The very thought of those times still evokes a form of post-traumatic stress. The magnitude of documents requiring creation, memorization, and distribution is staggering. Back-to-back meetings and introductions are par for the course, with responsibilities extending not only to self-introductions but also to orchestrating connections between relevant stakeholders for immediate high-priority tasks—contract reviews by the legal team, integration discussions with IT, and more. In such moments, Navgar's capabilities would have helped me chart my course, maintain alignment, and foster seamless collaboration across adjacent tracks where my input was vital. With the repository of tasks and activities embedded within Navgar, the chaos of M&A Integration could have been considerably tamed.
The strategic response on Day One should favor restraint over impulsive action—unless, of course, a crisis necessitates immediate action. Taking a step back minimizes the risk of hasty decisions and allows time for critical information to flow in, potentially reshaping initial perspectives. The aftermath of swiftly communicated decisions can disrupt the calm and unsettle the acquired team. Furthermore, such decisions might empower junior members of the acquiring team to embark on plans and actions prematurely (I’ve seen it happen and it’s ugly). Until the Integration blueprint is refined, maintaining the status quo and advocating for continuity across both organizations remains essential. This principle holds true more often than not. In instances where companies remain largely autonomous post-acquisition due to profitability, they thrive. However, it's crucial to remember that hemorrhaging cash without intervention and a well-devised turnaround plan is unsustainable. A miscalculated shift in focus can lead to unexpected failure, as I've learned firsthand.
The lessons I've gleaned from the realm of Mergers and Acquisitions, spanning due diligence, cultural alignment, and integration strategies, could easily fill volumes. And if this post's length is any indication, I've certainly approached the brink of authoring a book on the subject. The tapestry of M&A intricacies, when woven together, reveals a dynamic landscape that demands both strategic finesse and adaptability.
