As M&A activity surges in 2025, driven by the quest for technology, scale, and competitive advantage, companies risk missing the true value of the deal—people. While the promise of increased profitability is appealing, many M&As fail to realise their potential because cultural integration and communication strategies are overlooked. The key to realising synergies is not just the tech or assets—it’s the people behind them. Retaining and engaging critical talent is the real driver of M&A success.

The Cultural Pitfalls of M&A:
The high failure rate of M&As can often be traced back to the failure to integrate cultures. It’s easy to assume that acquiring a business is about simply bringing the new company into the fold, but this can overlook critical differences in the way the two organisations operate. What works in one organisation may not work in another—especially in terms of culture, leadership styles, and work practices.

In my own experience leading multiple M&As and in engaging with executives who have done the same, one of the biggest mistakes made is neglecting the cultural differences between the organisations involved. In many cases, organisations fail to acknowledge that both companies need to adapt and change. A successful M&A doesn’t simply mean absorbing the acquired company; it’s about blending the best of both cultures to create something stronger.

Technology, AI, and the Importance of People:
While the technological advantages gained through M&A deals—particularly in AI—are significant, it’s important to remember that the success of an organisation depends on its people. Technology may drive efficiencies, but it’s the employees who will drive growth, innovation, and customer satisfaction. That’s why culture and communication must remain central to the M&A process.

As companies pursue more disruptive M&As, especially in technology and AI, boards and executives will increasingly focus on the competitive advantage these assets can provide. However, without the right people strategy, the potential of these technologies may go unrealised. Organisations must be careful not to forget the people who will make those technologies work—without them, the technology alone can’t guarantee success.

HR’s Role as a Strategic Partner:
For an M&A to succeed, HR must be involved from the very beginning—not just as a support function, but as a strategic partner in the process. The Chief People Officer (CPO) needs a seat at the table during due diligence, transition, and integration. This involvement is non-negotiable. Too often, HR is brought in only after the deal is signed, when it’s already too late to influence the buy decision and have the time to ensure the cultural and communication strategies that drive successful integration and benefits realisation.

M&As are not just about merging operations; they are about merging people and cultures. To navigate this, HR requires dedicated resources—this can’t be accomplished by relying on the existing HR team alone. When organisations attempt M&As with limited HR capacity, something always suffers—whether it’s operations or the crucial attention required for integration. Additional HR capacity, combined with change management and cross-functional team support, is critical. HR must ensure that the integration strategy goes beyond logistics to focus on talent retention, leadership alignment, and cultural integration, addressing the complexities of people and culture while driving engagement across both organisations.

For HR to truly shape the M&A experience, it must be an integral part of the deal, influencing how people fit into the new structure, identifying retention risks, and developing communication strategies that keep employees informed and valued throughout the process.

Strategic Cultural Integration: A Success Story:
A prime example I have seen of successful cultural integration occurred when two organisations with very different hybrid working models merged. Initially, the disparity was seen as a major retention risk for the acquired company’s employees, who were accustomed to a more flexible work approach. Rather than forcing one working model onto the other, leadership made a strategic decision to adopt the acquired company’s flexible practices across the entire organisation. This move turned a potential issue into a competitive advantage—improving retention, strengthening engagement, and uniting both teams under a common, flexible working approach. The decision not only enhanced the overall workforce experience but also created a culture of trust and adaptability, setting the foundation for long-term success.

The Reality of Due Diligence and Agile Integration:
Due diligence is a critical phase of the M&A process, but it’s important to acknowledge that you can never uncover everything during this stage. There are always hidden challenges and cultural nuances that only emerge once integration begins. This is why organisations must adopt an agile approach to integration—prepared to pivot and adapt as new issues arise. Being flexible and responsive to unforeseen challenges ensures that organisations can address integration issues in real-time and maintain momentum throughout the process.

Clear, transparent, and frequent communication plays a key role in this agile approach. Without consistent communication, employees will fill the void with their own interpretations, leading to confusion and distrust. Over-communicating, particularly when it comes to explaining changes and addressing employee concerns, mitigates these risks. Employees need to understand the ‘why’ behind decisions and how the changes impact them. Open, honest communication not only helps employees feel valued but also reduces turnover—vital for realising the full value of the M&A.

Conclusion:
The M&A landscape in 2025 will be defined by the pursuit of technology and strategic alliances. But the true success of these deals lies not only in the technology but in the people. HR must take an active, strategic role from due diligence through to integration, ensuring that people and culture are prioritised alongside business operations. Communication—open, honest, and ongoing—is essential to creating the trust and engagement that will deliver M&A synergies. When culture, communication, and people are at the centre of the process, the synergies of M&As will be realised, driving long-term success for the organisation and its workforce.