The Art of Working Together in M&A: Balancing Face-to-Face and Virtual Collaboration

Mergers and acquisitions (M&A) are as much about people as they are about numbers. One of the most critical yet often underestimated aspects of M&A success is figuring out how to work effectively with the target company. I’ve learned that the way teams interact and collaborate can make or break an integration. In this article, I’ll share insights from my experience and lessons I teach at London Business School on how to strike the right balance between face-to-face and virtual collaboration in M&A.

The Pre-Deal Phase: Building Relationships Early

The foundation of a successful integration is laid long before the deal is signed. During the pre-deal phase, it’s essential to establish strong relationships with the target company’s leadership and key stakeholders. This includes understanding their ways of working, their experience with M&A, and how they approach the deal process.

Face-to-face interactions are invaluable during this phase. There’s something irreplaceable about sitting across the table from someone, reading their body language, and building trust through personal connection. For decades, I’ve advocated for in-person meetings, especially in M&A, where the stakes are high and the nuances of communication matter. Seeing the “whites of someone’s eyes” can make all the difference in understanding their motivations, concerns, and expectations.

The Shift to Virtual Collaboration: Lessons from COVID-19

The COVID-19 pandemic forced a rapid shift to virtual collaboration, and M&A was no exception. During this time, I worked on several deals where all interactions were conducted online. While technology like Zoom and Microsoft Teams made it possible to keep the process moving, I found that the lack of face-to-face interaction created challenges. Building trust and navigating sensitive discussions were more difficult in a virtual environment.

However, the pandemic also accelerated the adoption of virtual tools, and people have since become more comfortable with online collaboration. Today, it’s possible to conduct significant portions of the M&A process remotely without sacrificing effectiveness. In fact, I’ve recently completed deals entirely online, with no face-to-face meetings, and they’ve worked well. That said, I still believe there’s a place for in-person interaction, especially when building relationships and addressing complex or sensitive issues.

The Hybrid Approach: Striking the Right Balance

As we move further from the pandemic, a hybrid approach to collaboration is emerging as the best of both worlds. While virtual tools offer efficiency and cost savings, face-to-face meetings remain crucial for relationship-building and tackling high-stakes discussions. In my global integration projects, I still encourage executives to meet in person at least once, even if the majority of interactions are online. This initial connection can significantly enhance the quality of virtual collaboration that follows.

For example, spending a few days together in the same room allows team members to build rapport, understand each other’s communication styles, and align on goals. This foundation makes it easier to navigate the pressures and complexities of integration, whether it’s managing day-to-day operations (BAU) or driving the integration itself.

The Challenge of Changing Behaviours

One of the most fascinating aspects of M&A is the challenge of changing behaviours. The shift to virtual collaboration is a prime example. For decades, video conferencing technology existed, yet many organizations continued to rely heavily on face-to-face meetings. It took a global pandemic to finally change this behaviour on a large scale.

This serves as a valuable lesson for M&A leaders. Even when a change seems obvious and beneficial, it can take time for people to adapt. Whether it’s implementing a new IT system, restructuring a department, or rebranding a product, leaders must anticipate resistance and plan for a gradual transition. Clear communication, training, and support are essential to overcoming inertia and ensuring successful adoption.

Case Study: The Complexity of Rebranding in M&A

A recent deal I worked on highlighted the importance of understanding the complexities of behavioural change. The target company’s sales and marketing team had experience with rebranding, but they underestimated the time and effort required to execute a rebrand within the tight timelines of an M&A integration. Contracts and carve-outs added layers of complexity, and the team struggled to adapt to the accelerated pace.

This experience underscores the need for thorough planning and realistic expectations. Even when teams have the necessary skills, the unique pressures of M&A can create unforeseen challenges. Leaders must provide clear guidance, allocate sufficient resources, and remain flexible to address issues as they arise.

Conclusion: Collaboration as a Cornerstone of M&A Success

In M&A, success hinges on the ability to work effectively with the target company—both in person and online. While virtual tools have transformed the way we collaborate, face-to-face interaction remains a powerful tool for building trust and navigating complexity. By adopting a hybrid approach and anticipating the challenges of behavioural change, leaders can create a collaborative environment that drives integration success.

M&A is not just about merging companies; it’s about merging cultures, teams, and ways of working. Getting this right is the key to unlocking the full potential of any deal.