From your perspective as a CHRO, where do people and culture most directly influence whether an acquisition delivers its intended value?

In M&A, talent is often viewed first as a cost—total compensation being the largest line item. Whether HR is engaged early frequently depends on its standing in the organization and its relationship with the CFO. Without that partnership, HR’s ability to influence outcomes meaningfully is limited.

But successful deals aren’t defined by purchase price alone. They’re defined by who we prioritize and retain. That’s both an art and a science. Finance sees cost; HR sees the cost of getting it wrong.

When people feel undervalued or left in the dark, it shows up, sometimes as turnover, and sometimes more quietly as disengagement. That “job-hugging” culture, where people stay but mentally check out, is far more corrosive. And once it sets in, it’s expensive to undo.

When Should a CHRO Get Engaged in an M&A Deal?

Ideally, by the time the deal narrows to two or three serious acquisition candidates, when leaders are still shaping which company to buy, not just how much to pay. At that stage, it’s critical to understand the culture and the people, not just the numbers. You need to know who the culture carriers are and who will drive adoption post-close insight that Finance rarely sees.

I was involved in a deal where the acquiring company had a very traditional leadership profile: older, male, and homogeneous. The company being acquired had a diverse leadership team, largely women. On day one, the acquiring company eliminated that leadership.

The message was unmistakable: the culture didn’t matter. I told the new leadership, “You’re the mouse that swallowed the cat, and you’re going to have a hard time digesting it.”

They did. The integration failed, value eroded, and the company was sold shortly after.

What should happen in the first 90 days?

Transparency and communication, especially when the news is hard. People don’t want surprises. Don’t leave them in an information vacuum. Communicate early and often. Let them know why decisions are being made.

Don’t make talent decisions in a “war room” without involving local leadership to understand who their key people are. Get in front of teams, own the tough news, and explain why decisions are being made. If you do that, you’ll earn trust.

Move quickly with necessary org changes, but make decisions based on business needs, not just cost. Let leaders whiteboard their future-state organizations. If you give them ownership, they’ll make smart, humane decisions.

How do you get cultures to merge?

It begins with the M&A announcement and people perceiving how they were treated. If they felt dismissed or in the dark because of a lack of communication, it’ll linger. I’ve seen acquired employees still refer to themselves by their old brand years after the acquisition. That means the integration never took hold.

Microcultures are real, but early mistakes create walls. Words matter, and respect, exposure, and showing up go a long way. People will always remember how you made them feel at the start.

What people-related red flags do you look for?

Someone who refuses to buy in even after being given full, honest information. Gossip, negativity, and misinformation are contagious. That person puts their own emotions above the team’s best interests and can derail progress.

How do CFOs view the people element of a deal?

For the CFO, it’s about framing it in terms they value: cost, risk, productivity loss. I bring data on the cost of attrition, time to productivity, and the impact of disengagement. That’s how I get their attention.

What helps with retention?

Stability. For a year after the sale, keep things as consistent as possible. Don’t shock the system. For key talent, get to know them, offer equity, and recognition. Show that they matter.

How do you know when cultural integration is working?

Low regrettable turnover—under 8%. That tells me we’re getting it right.

What about when the deal is innovation- or capability-driven? How do you preserve the identity of the acquired team?

Protect their ways of working and their key people. Give it time. At one company we were acquired by, we negotiated 1 year of operational freedom post-acquisition to prove our model worked. That trust and clarity go a long way.

Who should communicate in M&A?

Everyone involved, from HR to sales to operations, has to be on message. Build an intranet, issue FAQs, and join business Q&As. Make sure the messaging is clear, consistent, and understood.

If you could redesign one aspect of how companies approach culture in M&A, what would it be?

Courage and communication. Be honest. Don’t hide in a war room. Involve internal leaders early, even if they’re not “your” people. Respect what exists before you start reshaping it.