Effective Management Of Change During Merger And Acquisition
Author: Michael Moriarty
Reading Time: 6 Minutes
The Situation
A change of ownership inevitably brings significant disruption—both practical and psychological. Practical changes may be minor, such as new authorisation and reporting requirements, or major, including restructuring and operational shifts. Regardless of their scale, the psychological impact is always profound.
The ability to manage the complexity and emotions that arise during such transitions can be the difference between success and failure. Ensuring the alignment of an acquired business’s executive team with its new owners and securing their commitment to delivering agreed outcomes is critical. Providing executive teams with both team and individual coaching enhances the likelihood of private equity investors fully realising the value of their acquisitions. Coaching facilitates alignment and supports executives in recognising the benefits of commitment during this period of upheaval.
Considerations
Practical Support
Even in the most stable environments, executive teams often struggle to maintain clarity of purpose and execute effectively. The challenges intensify following a change in ownership, as established processes and relationships are disrupted by new expectations and requirements. Where acquisitions necessitate integration with other businesses, the complexity and potential for disruption increase exponentially.
Coaching can provide vital support, helping the executive team navigate its new stakeholder landscape and relationships. It enables teams to align with their new owners' expectations and determine how structures, roles, and processes should adapt. As implementation unfolds, coaching ensures that teams remain aligned with the overarching purpose of the changes and maintain coherence in execution.
Psychological Support
The executive team’s commitment to leading the business effectively is essential for maximising the acquisition’s value. However, executives often experience a decline in motivation, perceiving a loss of agency in the face of new ownership. The emotional impact of this transition can drain the energy and creativity required to drive the business forward. Additionally, executives frequently question the reality of incentivisation structures such as carried interest, doubting whether they will ever see tangible benefits.
Individual coaching for key executives provides a structured approach to managing the emotional turmoil of change—both their own and that of their peers and teams. By recognising how their emotions influence their beliefs and behaviours, executives can make conscious adjustments to their approach. This awareness also helps them navigate the emotional responses of their colleagues, preventing internal tensions from derailing transformation efforts.
Furthermore, coaching supports executives in understanding and believing in the value of carried interest, reinforcing the alignment between their performance and the success of the acquisition. By fostering confidence in incentivisation structures, coaching enhances engagement, ensuring both the investor and the executive team benefit from a well-executed transition.
Embedding A Coaching Culture As A Strategic Advantage
For acquisition targets, the prospect of working with new owners extends beyond financial considerations. Many executives assess the long-term working relationship they can expect post-acquisition. Integrating a coaching culture within the acquired business fosters a leadership approach that encourages continuous learning, self-awareness, and adaptability. Coaching is not just a tool for transition but a long-term investment in the organisation’s leadership and operational resilience.
This approach embeds trust and psychological safety within the organisation, empowering executives to navigate uncertainty with confidence and agility. In a competitive market where securing high-quality acquisitions is increasingly challenging, embedding a coaching culture signals a commitment to sustainable leadership development, making the business more attractive to investors and acquisition targets alike.
Conclusions
The Coaching Process
Coaching is designed to enhance awareness, potential, and performance. Success depends on a relationship of trust between all parties and a structured process that unfolds over time.
Our approach begins with a clear agreement on intended outcomes with the organisation commissioning the coaching. A lead coach then facilitates discussions with both the commissioner and the executive team leader to ensure alignment on goals and expectations. An evaluation framework is established to measure the effectiveness of the coaching intervention.
A thorough diagnostic phase follows, involving structured interviews with executives, stakeholders, and direct reports. Depending on the context, additional diagnostic methods may be employed. Based on this insight, coaching is delivered at both team and individual levels, extending to other key personnel identified as critical to the acquisition’s success.
The duration of coaching engagements is determined collaboratively, though for this type of work, a twelve-month commitment is typical, with an option to extend based on demonstrated value.
Throughout the engagement, confidentiality is maintained, with periodic theme-based reporting and facilitated review meetings between the commissioner and the executive team leader. At the conclusion of the coaching programme, a formal evaluation process captures insights and informs a final review.
By embedding coaching within the transition process, private equity investors can drive alignment, maintain motivation, and protect the long-term value of their acquisitions.
“Individual coaching for key executives provides a structured approach to managing the emotional turmoil of change.”
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