Start with the “why” of the deal
Not every acquisition has the same goal, and that’s exactly why not every integration should look the same.
In some cases, the acquiring company is targeting a very specific asset: a technology platform, a customer segment, geographic footprint, or key talent. In those situations, a faster absorption model might make sense. The acquired company is meant to feed into an already well-established machine.
But for many strategic deals, especially those aimed at growth, market expansion, innovation, or operational synergies, simply folding one company into the other is not only ineffective, it can be counterproductive. These are the deals that require a new operating model, not a bigger version of the old one.
McKinsey highlights this in their research, that the most successful integrations look at M&A as a catalyst for transformation (not just control). This way of thinking brings most value when leaders challenge how things should work, and are ready to act.
Define the new value proposition
One of the biggest blind spots in post-M&A integration is failing to revisit the combined company’s value proposition. Too often, leadership assumes that putting two logos together automatically creates more value for customers. It doesn’t.
Your clients don’t care about your internal integration roadmap. They care about what this means for them – today, tomorrow, and next year. Will the product be better? Will the service stay strong? Will prices go up? Will their needs still be understood better?
If you don’t define the new “why us?, your customers will define it for you. Often by walking away.
Lead integration in co-design mode
Think about integration as a co-design process. The merger is not the finish line, it’s the beginning of building a new organization! Intentionally.
Ask the hard questions early. Design the new organization deliberately. Treat people, all employees and customers as the foundation of the new value you’re building. In the end, integration is about building what’s next. Together.
The real work starts in strategizing and rethinking how teams work, how customers are served, how the business creates value. Taking the best from both companies — not blindly assuming the acquirer knows best.
Often it’s about asking the right questions. What is the best way to serve our customers together? How do we retain and motivate top talent from both sides? Where are the real cultural synergies and where are the frictions? What kind of company do we want to be two years from now — and how do we start building that today?
Plan ahead. PwC’s backs this up in their studies, the companies that plan their long-term operating model during the deal phase (not after) are significantly more successful in capturing synergies and retaining talent. You can read more here: PwC, 2023.
Acknowledge that transformational integrations require a different set of tools and leadership behaviors. Some of the key enablers we’ve seen work:
- Starting with a shared purpose, both sides need a common “why.” This anchors decisions and aligns priorities.
- Designing the operating model (not just org charts!) for the new company. Think beyond reporting lines. Include ways of working, tools, governance, and decision-making processes.
- Putting the customer at the center and involve them early. Testing assumptions and asking questions is key to keep clients close during transitions.
- Building (and continuously reconfirming) leadership alignment. Without visible, unified leadership, the middle layers collapse.
- Creating a communication plan and keeping open dialog. Don’t wait for the final answers to communicate, share the process. Be transparent, even when it’s uncomfortable.
- Respect legacy while designing for the future. As Kaizen emphasizes in their studies, the long-term value is created when transformation is phased, respectful, and guided by a clear roadmap (not rushed under pressure)
If done in co-creation mode, the integration accelerates work and turns post-M&A struggle into a transformation engine. It helps to engage people who are open to understand the vision as well as loyal clients who can become part of the journey. Synergies that come not from cost-cutting, but from growth and smarter deliver build a new company that is more resilient, innovative, and ready for what’s next.
It is not always easy
At h23, we support companies after their M&A integration has already started – too often, after problems have surfaced. If we are involved early, we help design the strategy and first 100-day playbook right after “day zero.” But when called later, the questions are tougher: Why didn’t the M&A generate the expected value? Was the deal wrongly assessed—or was it internal resistance, market misjudgment, or poor execution Why, despite all the right ingredients, are results disappointing?
Different issues, same outcome: value erosion.
We are often asked to facilitate a strategy session for a leadership team struggling with post-M&A challenges. In extreme cases, we see that the company is in operational deadlock. Why?
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Integration is rushed, without a clear goal shared with the acquired company. Everyone tries to do their best but nobody knows what is expected and what is the direction.
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Clients push back and leave. Employees face mounting pressure and burnout.
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Governance changes the decision-making process, often making it slower, creating confusion, and eroding morale.
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No real communication plan. No leadership alignment. No space for co-creation.
The opportunity for growth seems lost to friction, client churn, and internal breakdown. Our job at h23 is to figure out how to move on from that and find a path back to value creation.
