Beyond the Deal: 5 keys to sustaining growth and momentum after M&A
Mergers and acquisitions (M&As) are a cornerstone of strategic growth in today’s business landscape. Yet, if improperly managed, these moments of triumph can quickly become tales of caution.
A recent Harvard Business Review report highlights a sobering reality: 70%-90% of M&As fail to achieve their intended outcomes. For organizations looking to leverage M&A to scale their business and boost profits, this statistic is a stark reminder of the importance of proper planning and follow-through beyond the closing of a deal.
I’ve had the privilege of navigating this terrain alongside many industry leaders.
Whether it was with JP Morgan as an associate in their Financial Sponsors group, helping Generac through its first few acquisitions as a public company, guiding Belkin while it transformed a product line into a standalone business unit, or enabling Alarm.com to build out new markets and products, I’ve witnessed both the challenges that derail integration efforts and the opportunities that can emerge when properly managed.
Each situation was unique. Yet, they all shared one common thread: Closing the deal was only the start.
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As we celebrate the second anniversary of Lessen’s acquisition of SMS Assist, it’s the perfect time to share five key lessons my teams and I have picked up through these complex but rewarding journeys.
1. PICK THE RIGHT PARTNER: THERE ARE PLENTY OF FISH IN THE SEA
Like a romantic partner, an M&A target must check multiple predetermined boxes. That buzzy startup with dramatic growth and celebrity backing may seem like the one; however, short-term attraction cannot be the sole (or even primary) reason for M&A consideration.
It’s critical to look beyond the surface-level appeal and focus on long-term compatibility and potential. Shared values and complementary strengths lay the groundwork for enduring success, allowing both organizations to leverage their unique capabilities while creating something greater than the sum of its parts.
When our team evaluated SMS Assist as an acquisition target, the deal seemed unconventional at best, with SMS’s revenue dwarfing ours. Yet, our leadership saw the potential to transform the property services category in one bold move and worked tirelessly over the next 13 months to close the transaction.
The partnership wasn’t immediately obvious to all, but those who knew where to look saw the opportunity. Two years in, we have a great team, tremendous momentum, and major opportunities ahead.
2. CULTURE IS EVERYTHING—PRIORITIZE IT
Blending distinct organizational cultures is one of the most critical and challenging aspects of any M&A. In fact, McKinsey found that 95% of executives view “cultural fit” as crucial to the success of corporate integration.
But, how exactly do you achieve this?
It’s more than corporate gatherings or office perks. Successful cultural integration requires aligning teams around a shared mission, values, and work processes.
This was a primary focus for Generac’s leadership team during the 2011 acquisition of Magnum Products. Our initial public offering had already brought about significant change, so we knew we had to approach integration with care and precision.
We identified the critical aspects of each team’s workflows and values that couldn’t be compromised. From there, we gradually introduced new processes, layering them strategically. After each implementation, we assessed its impact and made adjustments to ensure alignment, allowing us to bridge gaps, build trust, and create a shared sense of purpose.
This deliberate approach took longer but paid off, establishing a scalable blueprint for future acquisitions.
3. PICK YOUR BATTLES: KEEP YOUR EYE ON THE BALL
M&A transactions bring unforeseen challenges. Organizations must set priorities and deemphasize non-critical initiatives. Of course, that is easier said than done.
Let your “why” guide your focus. If your merger aims to boost revenue and expand geographically, prioritize initiatives that drive these outcomes—like marketing efforts and sales training. Tasks like reducing redundancies and streamlining IT are easier to tackle once your core objectives are well underway.
When my team set out to transform WeMo, then a division of Belkin, our priority was to streamline operations and focus on fewer, higher-quality initiatives.
Over two years, despite constant distractions, we stayed disciplined—halving our overall SKU count while more than doubling revenue. Refining our product and messaging around core values clarified that WeMo, acquired years earlier, was best suited as a standalone joint venture. This realization led to a strategic transaction with Uponor, creating Phyn—a more focused, profitable, and efficient entity.
By staying true to our objectives, we achieved measurable, transformative results.
4. BE DECISIVE: CLARITY BUILDS CONFIDENCE
Uncertainty can erode morale and productivity. Transparency and decisiveness are vital for maintaining team trust and momentum.
Hesitation breeds confusion, while clear, timely decisions—backed by well-communicated rationale—keep teams aligned. A 2021 study by Grammarly and Harris Poll found that ineffective communication costs U.S. businesses up to $1.2 trillion annually. Strong leaders provide clarity, empowering teams to take action with confidence.
By openly defining roles, processes, and objectives, organizations can create a roadmap that keeps everyone moving toward a shared objective—reinforcing morale, accountability, and progress.
5. BE READY TO ADAPT AND DEAL WITH SURPRISES
No plan eliminates surprises. Challenges will arise, and flexibility is key to turning setbacks into opportunities. Effective adaptation requires humility and creativity—revisiting assumptions, reassessing plans, and course-correcting when needed.
When PointCentral acquired Doorport, our vision was to seamlessly extend our “curb to couch” access solution. However, integrating their technology into our existing stack caused delays and fell short of the seamless experience we envisioned.
Rather than accept setbacks as insurmountable, we collaborated closely with both tech teams to identify what was achievable and how to realign our approach. By refining our timeline and the final product, we successfully delivered an innovative solution that met customer expectations and accelerated value creation—achieving more together than we could have on our own.
LOOKING AHEAD
M&A is not an endgame—it’s a starting point. The integration journey demands commitment, strategic vision, and adaptability. True success lies not in signing the dotted line but in how organizations navigate challenges and seize opportunities post-merger.
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