Prioritizing Integration Resources: The Key to Successful M&A Delivery

Mergers and acquisitions (M&A) are complex endeavours that require meticulous planning and execution. One of the most critical yet often overlooked aspects of M&A success is the allocation and prioritization of resources. As someone who has led the European side of a $6 billion deal spanning 30 countries, I’ve seen firsthand how resource gaps can derail even the most well-thought-out integration plans. In this article, I’ll share insights from my experience and lessons I teach at London Business School on how to ensure your integration resources are prioritized effectively.

The Foundation: Pre-Deal Resource Planning

The success of an M&A integration begins long before the deal is signed. During the pre-deal phase, it’s essential to think strategically about the resources required to plan and deliver the integration. This includes identifying the synergies that will drive the deal’s valuation and determining how and when those synergies will be realized.

Key questions to ask during this phase include:

• What resources are needed to plan the integration?
• Do we have the right mix of knowledgeable and experienced personnel?
• Where are our gaps in expertise, and how will we fill them?

For example, if restructuring is part of the plan, you’ll need experts who understand the intricacies of organizational design and change management. Similarly, if cost synergies are a priority, financial analysts with experience in M&A will be invaluable.

Post-Deal Challenges: Scaling Up for Delivery

Once the deal is closed, the focus shifts from planning to execution. This is where many organizations stumble. The resource demands of integration often exceed pre-deal estimates, particularly in specialized areas like IT, HR, and marketing. It’s not just about having more “pairs of hands”; it’s about ensuring those hands are guided by the right knowledge and experience.

Take HR, for instance. On a recent deal, we identified a need for additional HR resources at multiple levels—from junior staff to senior leaders. While more junior team members were essential for handling administrative tasks, we also needed experienced HR professionals who understood the unique challenges of M&A integration. This included navigating local labour laws, managing cultural integration, and communicating changes effectively to employees.

Identifying and Addressing Resource Gaps

A common pitfall in M&A integration is underestimating the complexity of certain workstreams. Whether it’s IT systems integration, marketing alignment, or HR restructuring, each area requires a tailored approach and the right mix of skills. To avoid bottlenecks, it’s crucial to conduct a thorough gap analysis early in the process.

Ask yourself:

• Which workstreams are most critical to the integration’s success?
• Where do we lack the necessary expertise or manpower?
• How can we fill these gaps—through internal reassignment, external hires, or consulting support?

In my experience, addressing these questions proactively can prevent delays and ensure a smoother integration. For example, partnering with local experts can be invaluable when navigating country-specific regulations or cultural nuances.

The Role of Leadership: Collaboration and Expertise

Effective resource prioritization also requires strong leadership and collaboration. As an integration leader, I’ve always worked closely with functional experts, such as HR directors, to ensure their teams have the support they need. This collaborative approach not only builds trust but also ensures that decisions are informed by deep expertise.

Moreover, leaders must be willing to roll up their sleeves and get involved in the details. Having been on both sides of the table—as an advisor and as an employee of a target company—I understand the importance of hands-on leadership. It’s not enough to delegate; you must actively engage with your teams to understand their challenges and provide guidance.

Conclusion: Resource Prioritization as a Strategic Imperative

In M&A, resources are finite, and time is of the essence. Prioritizing integration resources—both in terms of quantity and quality—is a strategic imperative that can make or break the success of a deal. By identifying gaps early, scaling up effectively, and fostering collaboration, leaders can ensure their integrations deliver the intended value.

M&A is not just about processes and plans; it’s about people. Ensuring your teams have the resources they need is the first step toward a successful outcome.