A counterintuitive benefit of being acquired by a larger company is improved internal team cohesion. The sudden influx of new partnerships and opportunities from the acquiring entity can compel the smaller team to work more closely together, fostering stronger alignment and mutual support.

To ensure Day 1 alignment and retain key talent, treat integration planning as a collaborative process. Share the developing integration plan with the target's leadership during due diligence. This allows them to validate assumptions, provide critical feedback, and feel like partners in building the future company, rather than having a plan imposed on them.

Instead of hiring expensive consultants who created chaos, Merck tasked a summer intern with shadowing their first major integration. The intern documented workflows and decisions in real-time, creating a practical, ground-up playbook that became the standard for all future acquisitions, proving a simple, low-cost solution can be most effective for knowledge capture.

Successful large-scale acquirers remain nimble, flexing their own processes to suit the acquired company rather than force-fitting it into a rigid corporate structure. This preserves the culture and talent that made the company valuable, preventing value destruction and keeping the new team engaged.

To avoid a broken handoff, embed key business and integration experts into the core deal team from the start. These members view diligence through an integration lens, validating synergy assumptions and timelines in real-time. This prevents post-signing surprises and ensures the deal model is operationally achievable, creating a seamless transition from deal-making to execution.

To avoid cultural dilution post-acquisition, the smaller company can maintain its identity by operating as a separate business entity within the larger organization. This allows them to preserve unique operational cadences and internal collaboration models, like Splunk's 'village' approach, amidst the broader integration process.

During a merger, prioritize people over process. Technical integration is secondary to building trust between teams. Use simple, cultural activities like joint happy hours and "show-and-tells" about the tech stack to humanize the engineering effort and foster empathetic collaboration early on.

A one-size-fits-all integration can destroy the culture that made an acquisition valuable. When State Street acquired software firm CRD, it intentionally broke from its standard process, allowing CRD to keep its brand identity, facilities, and even email domain to preserve its creative culture and retain key talent.

Instead of only the buyer investigating the target, successful M&A involves "reverse due diligence," where the target is educated about the buyer's company. This transparency helps the target team understand how they will fit, fostering excitement and alignment for the post-close journey.