Thriving During Mergers and Acquisitions in 2025 & Beyond

What’s at Stake?

When a major merger or acquisition falls through, the corporate fallout can be immense. Companies face direct financial hits like expensive break-up fees, sunk legal costs, and wasted months of effort. For instance, AT&T’s blocked takeover of T-Mobile left it on the hook for a $4 billion termination fee and a sharp drop in its share price. Investors often punish such failures – acquirers that abandon deals typically suffer negative market reactions as the promised synergies evaporate. Internally, failed M&A attempts trigger operational upheaval: leadership shake-ups, morale issues, and costly restructuring are common. One recent example is Penguin Random House’s scuttled $2.2 billion Simon & Schuster merger, which forced a $200 million break fee payment and led to the CEO’s resignation. These debacles also tarnish reputations and erode stakeholder trust. A collapsed deal signals a strategic failure and can invite tougher regulatory scrutiny while risking talent defections – a failed merger can truly be “catastrophic,” resulting in layoffs, brand damage, lost revenue, and other long-term setbacks.

To navigate these challenges, global mobility must be recognized as critical enablers of successful M&A transitions. The ability to seamlessly relocate key personnel, integrate diverse workforces, and establish physical presence in new markets is fundamental to realizing the synergies that drive deal value. Misaligned cultures and talent retention struggles are among the biggest reasons M&As fail, but strategic relocation planning ensures that leadership continuity, employee engagement, and operational efficiency remain intact post-M&As. Relocation plays a pivotal role in harmonizing regulatory, logistical, and human capital complexities, preventing costly disruptions.

Companies that treat mobility as an afterthought often see fragmentation, disengagement, and loss of institutional knowledge derail the intended benefits of an acquisition.

In contrast, organizations that integrate relocation as a core pillar of M&A strategy can accelerate workforce integration, enhance corporate cohesion, and solidify long-term success. Ultimately, relocation is not just a logistical necessity—it is a strategic safeguard ensuring that mergers deliver on their promise rather than unravel in disarray.

The M&A Forecast

After years of subdued M&A activity, M&A activity is expected to spur significant deal making due to reduced regulations and stronger capital markets:

• Barclays Global M&A Team feels the stage is set for robust dealmaking in 2025 and deal volumes could increase up to 15 percent year on year, driven by corporate ambition, increased sponsor activity and cross border activity.
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• Lower interest rates, moderating inflation and rising stock market valuations, reports Skadden, Arps, Slate, Meagher & Flom LLP, may encourage buyers to pursue acquisitions and sectors expected to benefit include energy, digital currencies, industrials, financial services, AI/technology and health care/life sciences.
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• Corporate deal-making is likely to accelerate going forward, reports Morgan Stanley’s “2025 M&A Trends Outlook”, as a favorable regulatory environment and almost $3 trillion in uncommitted capital are among key factors that could drive M&A activity.
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• Boston Consulting Group expects a resurgence in M&A activity to bring a wave of larger transactions, including megadeals.

With expected M&A activity forecasted for the year ahead and beyond, a question Global Mobility, Relocation and Human Resource departments should be asking now is: “Where do we start when we learn about a merger or acquisition that impacts our business?”

How to Successfully Integrate Two Companies: 5 Steps

When the M&A ink is dry, confusion often reigns for those not primed for the challenge. Even normal daily decisions can prove problematic in the new and merging environment.

“More than half of all M&A transactions and post-merger integrations end up destroying value.”

–Boston Consulting Group

Awareness of these 5 steps can help Global Mobility, Relocation and HR professionals play a more strategic role should your company head in that direction.

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Step #1: Ensure Key Stakeholders Are at the Planning Table

“Emotions are often intensified when two companies are coming together; having a clear understanding of the desired outcome for the new entity is essential when collaboratively creating global mobility programs.”

~ Janell Anderson, Chief Experience Officer, NEI Global Relocation

One of the most important factors in achieving a successful M&A transaction is effective integration.  Internally, companies must identify key players from the merging entities to create an M&A project team. Because combining the assets of two or more companies involves employees, Global Mobility, Relocation and Human Resources comprise an important segment of M&A implementation strategy and play critical roles on the transition team, as do Payroll and Accounting.

Six of eight key internal factors that can lead to a failed M&A touch on areas related to HR including:

• Execution/Integration Gaps
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• Talent Issues at the Target Company
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• Not a Well-defined M&A Strategy
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• Not Achieving Expected Cost Synergies
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• Inadequate/Faulty Due Diligence
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• Not Achieving Cultural Alignment
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This illustrates how important it is to invite Global Mobility, Relocation and Human Resources to the planning table to participate in the extensive pre-planning discussions that need to occur before the announcement goes public.

While executives leading a merger or takeover may act more optimistically, impacted groups might be insecure about the potential for dramatic change. Forming strong relationships and cross-departmental teams improve M&A dynamics.

What your team should do first:

The first order of business for the M&A project team related to employees includes:

• Establishing Timelines for what can be shared and when.
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• Sharing Known Dynamics, such as the number of anticipated relocations, locations affected, the new global footprint, potential group moves.
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• Determining Budgets to contain costs of known dynamics.
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• Identifying required Outside Resources, such as the relocation management company.
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• Generating New Policies to retain critical talent.

Once the basics have been established and a general statement of work has been considered, it is time to arrange a confidential meeting with the relocation management company. Because every M&A has its own unique signature, past actions may not fit the current situation.

NEI has vast experience helping numerous companies navigate the complexities of M&A integrations related to global mobility and can be a time and cost saving advocate for planning a successful M&A.

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Step #2: Address Cultural Differences

U.S. companies in the time ahead may look to acquire European companies to strategically expand their footprint and be tactical about what capabilities they want to acquire, according to Morgan Stanley.  As well, companies in Japan are also signaling increased interest in acquiring assets, both domestically and overseas, including buying into Europe for diversification.

Cultural factors and organizational alignment play a crucial role in the success—or failure—of an M&A. However, leaders frequently underestimate the importance of culture, which can result in disappointing outcomes:

• McKinsey & Co. reports that some 95 percent of executives describe cultural fit as critical to the success of integration. Yet 25 percent cite a lack of cultural cohesion and alignment as the primary reason integration efforts fail.
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• According to Aon Hewitt, 58 percent of companies reported they did not have a specific approach to assessing and integrating company culture in a deal.

With the forecasted uptick in cross-border M&A activity, and since cultural alignment is a major factor in a successful M&A, consider investing in cultural training for all stakeholders, including the HR and Global Mobility/ Relocation teams that may work together.

An assessment between key groups is often used to appreciate the differences. Understanding work style, protocol, etiquette, decision-making, and more is critically important for developing the organization’s new culture in a manner that helps everyone feel like a valued participant.

‍Merging Cultures

“Truly global companies around the world are securing supply chains and acquiring companies internationally to do so. We should expect even more cross-border volumes across regions for the foreseeable future.”

~ Mollie Ivancic, SVP of International Services, NEI Global Relocation

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NEI Thriving Example #1

When a North American firm was acquired by an overseas conglomerate, both relocation departments entered the process knowing there needed to be much planning, collaboration, and integration of teams to maintain a return on investment and a seamless transition.

NEI recommended intercultural and communications training for all groups working on or affected by the transition and provided additional area orientation support and integration planning for those who would relocate. This was a crucial step for members of the acquiring company’s overseas management team who were coming to live and work in North America where they would present a different culture and management style to the new workforce.

The company also used the resources of the foreign country’s local embassy and engaged their ambassador to speak about cultural customs and business protocols of the acquiring company’s country to key operational staff in the United States who would be working with new, high-level managers.

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Step 3: Assess Global Mobility Needs and Explore New Strategies

“Global mobility programs create the support structure for new hires and internal transferees alike, it is critical to ensure you have experts who can guide you through the integration of existing programs when developing the landscape for the newly formed entity.”

~ Janell Anderson, Chief Experience Officer, NEI Global Relocation

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Each M&A integration approach is different and tailored to the situation or even an outcome desired by senior management.

For instance, during clear “buyout” situations, leaders from both companies may publicly rename the takeover as a “merger” or a “synergy” to diminish the potential of employee anxiety and improve cross-organization collaboration. It is often assumed that the acquiring company’s policies will supersede the program of the company being acquired, but no hard and fast rules exist.

Group Moves within a new company are a common byproduct of M&A activity. Experiencing and managing a group move is one of the more challenging tasks a relocation manager and company can face. It typically involves targeted new policies, a very customized local approach, communication strategies, multiple meetings, support functions and ongoing collaboration.

Throughout our history, NEI has managed many group moves for our clients, ranging from groups of five to 800 transferring employees/families across numerous industries and global locations. We know how to identify success elements to retain key employees, present the big picture, guide affected employees and manage the entire process proactively. We have found that a strategy does not have to be expensive or elaborate to succeed.

Many Global Mobility, Relocation and Human Resource departments that have experienced M&A events discover that it is also an opportune time to not only customize group move benefits, but also make desired changes to the overall relocation program. The timing of the M&A provides the additional leverage needed to obtain senior management agreement and support.

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Trust is Earned, Not Given | NEI Thriving Example #2

In the merger of two mega-conglomerate companies, NEI took the lead in successfully analyzing and integrating the two companies’ relocation benefits and policies into a comprehensive new program. The client specifically sought NEI’s expertise in offering creative solutions, presenting the agreed approach to impacted employees, and helping to relocate the combined company’s new headquarters to a new site.

Newly combined companies often consult with NEI to conduct an objective, detailed analysis and compare both companies’ policies against current best practices and the client’s industry peers. After the policy comparison, merging companies often choose to move forward with NEI’s policy suggestions because of the focus on cost effectiveness and NEI’s record of delivering high employee satisfaction.

Once finalized, NEI presents its findings at a kick-off implementation meeting involving all key stakeholders. This is an excellent time to cover new program improvements and procedures while ensuring everyone involved is on the same page going forward on both tactical and strategic levels.

When the plan is put into action, desired results are monitored, measured, and reported regularly so the program can be adjusted, as necessary.

Not long after the positive conclusion of this large project, the client merged, yet again, with another rival. NEI helped manage the resulting union of the relocation programs and all transferee/assignee activity continued as a seamless execution of the ongoing program. Communication, collaboration, and a consultative approach helped make both mergers a great success.‍

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Step 4: Manage Expectations and Work Through Differences‍

Working through differences is not limited to companies combining work groups from different countries or regions of the world –internal company cultures can often be diametrically diverse.

NEI has helped the M&A of many companies with polarly opposite and well-entrenched, corporate cultures offering vastly different relocation benefits.

One company may provide generous benefits, while the other very lean. If not carefully managed, a situation like this can lead to dissatisfaction and bitterness, depending on new corporate objectives.

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“Understanding” Helps Us Accept Change | NEI Thriving Example #3

Quickly integrating the relocation programs of two merging companies was complicated enough, but members of a small division of the purchased company were disappointed about adhering to a new policy, much different than the more generous, exception-friendly benefits to which they had been accustomed.

NEI effectively helped the two sides by using a collaborative and consultative approach to compare relocation programs against the company-announced objectives. An enhanced benefits policy grid for the merged companies helped NEI present the findings and discuss why the proposed solution was important to meet company objectives.

Once each division understood the reasoning behind the proposed changes, they moved forward as one, overcoming a potential “relocation roadblock” for the new corporate culture.

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Step #5: Effecting a Calm Transition

Employees in the process of moving are already stressed about relocating and new responsibilities. It is natural to become even more anxious when caught in the middle of a merger or acquisition announcement. Equally concerning are evolving internal processes and ensuring that everyone is on the same page.

Consistency is critical for benefits and processes to be carefully analyzed and clearly documented, so details can be communicated to all without a need for later changes. This includes documenting processes for financial capture, tracking and reporting accuracy.

Taking the time to do it right the first time and preparing consistent documentation ensures that relocating employees and stakeholders will understand and correctly follow any new processes.

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Consistency is critical for communications and documentation uniformity.

Looking at the big picture and analyzing the impact of an M&A on various work groups is also important to foster a calm transition.

In the example below, NEI uncovered a source of great internal anxiety related to new processes and increased workload. NEI was able to create an innovative solution that saved an enormous amount of time and removed a great deal of anxiety by understanding the situation and listening to concerns.

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Work Smarter, Not Harder | NEI Thriving Example #4

For an NEI client, one of the company’s relocation groups experienced a stressful period each year as they had to work extensive hours for a week over the holidays to complete the year-end ‘true-up’ process. They had major concerns about how this would be accomplished with the combined entity and double the employees.

Concerns about the level of staffing, which was not increasing, were also raised – not to mention recognizing that this entire group of employees would be forced to work through the holidays while the rest of the company’s employees would be enjoying their time off.

NEI’s Chief Financial Officer met with all stakeholders involved and proposed a new accounting process to run tax gross-up calculations more often and interface them electronically, since NEI was also managing Expense Tracking. This eliminated the need for the time-intensive true-up process at year-end because NEI would be reconciling for the company throughout the year. The new process handled the task with ease, requiring less time and labor to accomplish a greatly increased workload.

As a result, the client’s team did not need to work that busy holiday week ever again – even with their company size doubling – which was much appreciated by everyone at the company!

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Finding Catalysts for Bold New Strategies

M&A announcements produce their own daunting challenges, but just as COVID-19 forced companies to act, M&A events can serve as catalysts to implement bold strategies tailored to a new and greater company mission and vision including:

• eliminating process bottlenecks
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• improving customer service
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• addressing policy/benefit shortcomings
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• demonstrating the HR/Global Mobility/Relocation group’s value as proactive consultants and
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• leaders creating a more competitive company to increase profitability and grow market share.

NEI has found M&A situations excellent opportunities to help introduce progressive changes or savings measures for which a client had expressed interest or intended to make but may not have had the internal support to implement previously.

What’s to do Next

NEI believes a coordinated approach to integration is critical, and taking proactive, deliberate steps can help foster a smooth transition. We have mastered the key elements of successful M&A integration for relocation and have a passion for working with client leaders to solve business challenges that benefit everyone.

Our global expertise and consulting services are available to help your drive solutions and thrive in today’s challenging, ever-changing world of workforce mobility.

If you have questions or seek to learn more about how we can help your company, please contact your NEI Client Relations Manager or NEI Client Development contact at 800.533.7353 any time.

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This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for tax, legal or accounting advice. Please consult your own tax, legal and accounting advisors before engaging in any transaction.

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