In M&A much of the focus tends to fall on financials, market share, and operational synergies; however, one of the most critical and often underestimated factors in determining the success of a deal post integration is early attention to talent retention. The people who drive innovation, maintain client relationships, and hold institutional knowledge are often the ones who ensure that post-merger integration succeeds.

When organisations merge, uncertainty about roles, culture, and job security can cause key employees to leave, taking valuable expertise and customer connections with them. An EY study found that on average 47% of employees leave within the first year of their business being acquired. Such departures can disrupt operations, diminish morale, and slow the realisation of integration and strategic objectives. A significant portion of M&A value may be lost through talent attrition in the first year after closing.

Successful acquirers recognise that retaining top performers requires more than financial incentives. It involves transparent communication, strong leadership, and clarity of the combined company’s post-merger vision and culture. Early identification of critical talent, coupled with targeted retention strategies such as career development opportunities and cultural integration initiatives can reassure teams and sustain productivity.

Ultimately, talent is what enables operational and cultural alignment. Without it, even the most well-structured deal can falter post closing. By prioritising people alongside financial and operational considerations, organisations can preserve corporate strength, maintain continuity, and unlock the full potential of a merger.

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