The Hidden Driver of M&A Success: Why Communication is Non-Negotiable

Mergers and acquisitions aren’t just about financials, synergies, or operational integration—they're about people. And if people aren’t engaged, the deal’s value is at risk.

Yet, research shows that most companies fail to effectively communicate major transitions:

?? 95% of U.S. employees don’t understand their company’s strategy. (Harvard Business Review)

??Disengaged employees have a 37% higher absenteeism rate, leading to 18% lower productivity. (Gallup)

?? Employees who lack clarity about their company’s goals are far more likely to leave.

Now, imagine layering an M&A event—one of the most uncertain periods in a company’s lifecycle—on top of these existing communication challenges.

When employees already struggle to understand their company’s day-to-day direction, how can they possibly navigate an acquisition without clear, frequent, and transparent communication? The answer is: they don’t. Instead, they disengage, productivity drops, and turnover skyrockets—leaving leaders scrambling to retain talent and maintain business continuity.

The Communication Gap in M&A

It’s no surprise that people and culture misalignment are the leading reasons for failed integrations. Research from Deloitte and NayaDaya Analytics Inc. highlights the risks:

??Unclear messaging post-merger creates confusion about roles, priorities, and leadership expectations.

??Lack of leadership visibility fuels distrust, leaving employees feeling like they’re navigating uncertainty alone.

??Inconsistent or delayed updates breed anxiety, leading employees to fill in the gaps with speculation or, worse, misinformation.

A failure to address these communication gaps leads to a 72% increase in people-related risks post-merger—significantly increasing the likelihood of failure.

How to Close the Gap

To ensure a successful integration, M&A communication must be:

? Consistent – Employees need regular updates, not just one big announcement.

? Two-Way – Feedback loops should be built into the process to surface concerns and adjust messaging.

? Data-Driven – Real-time employee sentiment tracking can help identify resistance early and guide proactive interventions.

? Manager-Led – Supervisors must be equipped with the right messaging to ensure credibility and clarity.

When an organization prioritizes communication, it reduces risk, aligns employees with strategic objectives, and accelerates the deal’s success. M&A is more than a financial transaction—it’s a transformation. And transformation is only possible when people are engaged, informed, and empowered to move forward together.

How does your organization approach M&A communication? Let’s discuss in the comments!

?? Interested in exploring how data can help assess culture and employee sentiment for M&A and transformation? Let’s connect and discuss how organizations are leveraging analytics to track and mitigate people-related risks before they become roadblocks.