The Art of War: Post-Acquisition Integration
Managing Expectations for the Entrepreneur through Acquisition
Buying a business? Congratulations. Fortune favors the bold, but chaos need not reign post-acquisition. Even though the true battle begins nearly the second the ink dries on your purchase agreement, you don’t need a complex strategy worthy of The Art of War. You just need a mix of strategy, cash conservation, and a human-first approach.
Start with the end in mind. An exit strategy should be your North Star. Know your exit before you enter from day one. This vision should guide every decision you make. .
Show up as a leader. Round up the troops, Host and all-hands that’s more than a meet-and-greet. Let your employees know why you bought the company, why they matter, and share your grand vision for the future. You’re not just acquiring assets, you’re leading people.
Draw up a plan for the first 90 days — the Crucible — it could be the difference between failure and success. As one of our fantastic founding fathers put it, “If you fail to plan, you are planning to fail.” Focus on your people, your processes and your tech. Have everyone in your company throw some ideas into the mix. Just remember, not all ideas are good ideas. Focus on quick wins. This period is a sprint; it will establish momentum and set the tone. The Crucible will separate the wheat from the chaff.
Cash is king. Doubly make sure you have enough cash post-acquisition. Cash management — debts and capital expenditures — need extreme vigilance to buffer you against the inevitable storms ahead.
Your employees should already know the drill, now it’s the customers’ turn — they’re more than just revenue streams; they’re your lifeline. Engage with them meaningfully — make them feel like partners in your journey, not just passengers along for the ride. Same goes for suppliers. They might not be front of the line, but they are important.
Avoid drastic changes for at least six months. In an interview with Shaan Puri, ETA Sarah Moore gave an example of why changing anything about the business too early is a mistake. There’s always that temptation though. You’re so excited after searching and searching and finally closing a deal that you’re tempted to play with your new ‘toy’. In Sarah’s case, she thought changing the phone systems was no big deal. Turns out it was. The phone company lost her lines midway through porting and the phones went down for almost a week. Those phone numbers were her biggest sales channel. Customers knew the business had a new owner and were left wondering if the company went out of business. Sarah says the incident traumatized her.
At the end of the day, your number one priority should be managing expectations; your employees, your customers, your suppliers, and most importantly, your own. Be prepared for initial setbacks and view them as temporary challenges instead of failures. Focus on the long game.