When you don’t assign the right team for the M&A deal

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  • #141887

    I have lived experiences of companies trying to save costs by assigning internal employees with not much experience in the field and always wondering why they keep doing this? is not a good idea to think you are saving money because in the long run, leading with an unexperienced team has shown to be more expensive. Has anyone experience this and how did you propose a different scenario?

    #141942
    Mery De Pra
    Participant

    My parent Company has a dedicated team for M&A. I think people from the business play an important role as well since they know in detail operations. A proficient discussion should involve both. I think a good solution is to have a specialized, dedicated team leading the project but with deep involvement of operational teams as well and in charge of specific tasks.

    #142600
    Juan Diego Flores
    Participant

    Yes, I’ve absolutely seen this happen—and more than once.

    Companies often fall into the trap of assigning internal employees without specific PMI or M&A experience under the assumption that it’s more cost-effective. The logic is usually: “They know the business, and it’ll save us consultant fees.” But as you’ve pointed out, this short-term saving often leads to long-term costs—including delayed integration, missed synergies, employee disengagement, and even customer loss.

    In one particular case, I saw internal project leads struggle with stakeholder alignment, risk assessment, and cultural integration—all of which resulted in the company missing several Day 1 readiness targets and needing to bring in external support anyway, but at a later (and more expensive) stage.

    #142641
    Lawrence
    Participant

    Your post resonates with me. I’ve seen this approach many times, and the short-term cost savings can be tempting for management. However, as you pointed out, leading with an inexperienced team often leads to hidden expenses in the long run, including slower progress, more errors, and higher turnover if people feel unsupported or overwhelmed.

    I also agree that inexperienced employees can bring fresh perspectives and motivation only if they have strong support, transparent processes, and experienced mentors. Without these, the team’s burden increases, morale can drop, and the project or business can suffer from avoidable mistakes and rework.

    When I’ve faced this scenario, I’ve found it effective to propose a balanced approach: pair inexperienced team members with experienced mentors, invest in structured training and onboarding, and communicate the long-term risks of under-resourcing or under-training. Presenting data on turnover costs, lost productivity, and the impact of errors—alongside the benefits of investing in proper training and support—can help management see the bigger picture.

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