M&A Requires Courage. I Am Not Lion.

“This is not the end. It is a beginning. You will need the courage of a lion to face this journey.” - unknown

The deal landscape is much like the African savannah – beautiful, alluring and fraught with danger. To survive the savannah, you need to be fast, bigger than most (usually), smarter than those that hunt you and have excellent instincts. It requires keen awareness, fortitude and unwavering courage. There are so many aspects of a deal that can trip an acquirer up and once you have fallen the chances of getting back on your feet and successfully fleeing your predator are alarming slim.

Deals typically don’t start out as adversarial, although I have seen my fair share that have. But human nature can play tricks on even the best businessperson’s fortitude. The secret is to go into the deal with a plan and execute upon that plan until something gets in your way. Then, pivot as needed in order to survive…

"I laugh in the face of danger." - Simba, The Lion King?

The truth is that deals require courage. If you think about it, an acquirer pretty much has everything going against them: a new business that they may or may not fully understand, unknown pitfalls and challenges, integration complexities, increased margin/revenue expectations, a nervous workforce, and sometimes even regulators. Welcome to the club!

The truth is that acquiring and integrating an organization is really challenging and can make even the most confident weak kneed. Serial acquirers know that everything revolves around the plan. The secret is to spend the time up-front to develop a solid plan, poke holes in it, socialize with key stakeholders and then take a deep breath and plow ahead.

Sure, there is something to be said about being flexible enough to pivot when you need to. However, there is a difference between making tweaks vs. getting whip-sawed by emotion. Every deal has its challenges, and it is how you respond to them that makes a huge difference.

“A lion leads the way and shows others what’s possible.” - unknown

The fact of the matter is that many deals will challenge your going in perceptions. Between the target’s leadership, the acquiring business unit executives, the board and the employees of both the acquiring and the acquired, it is easy to get veered off course quickly.

It takes the courage of a lion to stand tall in the face of adversity, calm the noise and forge ahead. I have seen too many deals where the leadership is trying to be everything to everyone and ends up not meeting the expectations of anyone. If you are confident in your plan and have a clear vision for the future, then stay the course. Don’t let distractions turn you into prey.

?“I- I- I hope my strength holds out.” - Cowardly Lion, Wizard of Oz

Obviously, this is a delicate balance, and a savvy leader needs to know when the assumptions going in are not the reality of the situation. However, the fundamentals of the strategy will typically not lead you astray, even if you are getting noise from multiple directions.

Finding your courage and adhering to your principals is what has gotten you and your organization to this place. Letting the anxiety and unknown, that is typically within a deal, is a losing proposition in many instances. In the savannah it is also important to rely on our herd – safety in numbers and herd strategy can help you love another day.

If it sounds like I am talking about of both sides of my mouth and that is because I am. What is good for one organization, or one situation may not have the desired effect for someone else. There is something to be said about flexibility. But there is a difference flexibility and flailing.

“I’m only brave when I have to be.” – Mufasa, The Lion King

Bravery comes in all shapes and sizes. And sometimes you find bravery in a crisis that we didn’t know we possessed. Having considered the roadblocks and challenges your deal might face ahead of time and having faith in your plan goes a long way in ensuring you can handle any adversary that comes your way.

“Who’s the brains of this outfit?” – Timon, The Lion King

Not only do you need to be courageous, but you need to be smart. Only you and your leadership team can determine what is right for you, your acquired company and the employee population. So, stay with you heard, don’t let the deal separate you from the pack and live another day.

Until next week - Stay strong, stay focused, stay sane and stay the course…__________________________________________________________________________