M&A: talent retention, a key to successful integration

In this article by Maddyness, William Berger, Partner at Eight Advisory, analyses an often-underestimated lever in M&A: talent retention.
The success of a M&A transaction depends as much on the post-deal integration as on the structuring of the operation, with the retention of key talent being a determining factor. The Eight Advisory study How to incentivise for successful integrations? reveals that appropriate incentive schemes are essential to maximise synergies and protect the value created, a challenge that is often underestimated.
“Today, we can no longer be satisfied with a purely financial view of acquisitions. Involving the operational and HR teams from the due diligence phase is essential to avoid mistakes during the integration process”, explains William Berger.
Companies retain their teams mainly through financial incentives such as bonuses, shares or earn-outs, but the Eight Advisory study shows that assigning new responsibilities is an underutilised strategic lever. Although this lever contributes to the success of synergies in 45% of cases, only 27% of companies utilise it.
“Many companies underestimate the impact of non-financial incentives. However, broadening a key person’s responsibilities, or even knowing that this is possible, can generate a much more lasting commitment than a one-off bonus,” comments William Berger.
Download the Eight Advisory white paper How to incentivise for successful integrations?