How can strategic consultants help organizations navigate mergers and acquisitions?

I often reflect on the lessons from the largest corporate merger in Africa at the time, the merger of the United Bank for Africa (UBA), and Standard Trust Bank (STB), led by Tony Elumelu, and the lessons that apply till today. First is around fit, synergy and compatibility. Leaders must decide very early on, the type of culture for the new organisation. Consultants can guide here, but ultimately this is the responsibly of management. If you fail to put in place the right culture early on, then you miss the opportunity for good. Next is around mindset. There must be no victor nor vanquished post M&A. Employees must see themselves as equal, and the organisation must have zero tolerance for hubris and hostility. All must see themselves as one.

Strategic consultants provide objective analysis and assessment of anticipated synergies and risks associated with a merger which an insider maybe too close to see. Aside from providing all the necessary services, they bring in fresh perspective, expert domain knowledge and wide range of experience that comes from handling similar projects.

In my experience, much will of course depend upon the size of the deal. Regardless of deal size, however, I would be extremely reluctant in relying upon the guidance of any "consultant" without a significant degree of legal expertise doing similar deals. No substitute for experience, here. And if you're lucky, you'll find a savvy tax-attorney able to minimize the inherent financial friction generated by valuation and Capital Gains-related issues.

Experience and credentials are necessary. Not only advising, handling a post merger integration needs senior resources and strategic actions. Only this kind of resources could make critic and legit decisions, always based on past experiences that reached good results.

Like conductors, strategic consultants, precisely orchestrate M&A components, aligning diverse stakeholders for success. Similar to chefs, they blend organizational flavors, navigating complexities with careful consideration of existing 'ingredients' and the artful introduction of new elements for a balanced result. Embodying film directors, they script the M&A narrative, casting the right 'characters' and ensuring a seamless storytelling flow. Hiring a consultant with an operational background is essential for anticipating challenges and strategically crafting scenes that propel the organization successfully. It takes the artistry of orchestration, culinary precision, and storytelling finesse to guide M&A integration strategically.

The way a deal is positioned up front has a significant impact on how integration takes place after signing. Emotions are high during deal negotiations and acquiring companies make promises to "keep the staff", "keep the process", and "keep things as-is". Sometimes the acquisition is positioned as a partnership to ease the stress and make the acquired feel more comfortable. However, these upfront promises can handcuff the integration team and make for a Frankenstein-like outcome. Pieces and parts of the two companies are retained to keep the peace and the combined organization never realizes the acquisition potential. A consultant can help companies avoid the pitfalls of positioning a deal in a way that will diminish trust in the future.