I’ve Endured Several Gut-Wrenching Corporate Mergers — 7 Takeaways That Will Help Your Sanity and Savings Survive
On Saturday, September 13, 2008 every time I hit reload on my computer the news got worse.
Lehman was going under. And my firm Merrill Lynch was rapidly following it into oblivion. By Sunday, Bank of America acquired us. On Monday, dozens of BofA executives from Charlotte arrived our NY headquarters.
This was not my first experience with sudden change. I’ve since witnessed several more — from the inside and as a close outside observer.
If you’ve never endured a merger, consider yourself fortunate! Read what happens and learn you can do to insulate yourself from adverse impact.
- People will resist.
This is the normal human condition. Any future is unknown. Mixing in financial instability and a new owner is a recipe for hysteria.
Breathe, stay calm, assess the situation and help to move things forward. You can always choose to leave.
2. Factions will develop.
To the trained eye, suits worn by Merrill Lynch and BofA execs were as different as football and basketball uniforms. It took me several years to come close to embracing that we were on the same team.
Don’t be like me!
3. Long-timers will be impacted the most.
Many colleagues at Scott Paper Company in Philadelphia had been there for 20 or 30 years. Changing jobs or moving was near impossible.
Build in flexibility early in your career. Change jobs. Move. Seek different roles. You’ll build confidence that you’re capable of moving.
4. It’s possible to change the integration plan.
In the early days following the BofA acquisition, the playbook to integrate Merrill Lynch was used to integrate LaSalle Bank in Chicago. With 18,000 financial advisors, global businesses and an investment bank, Merrill was very different from LaSalle.
Provide tangible rationale to influence the plan. Don’t underestimate the power of culture differences and emotion.
5. “Too many eggs in one basket” is real.
In 2008 many from Merrill or Citi held their entire retirement savings in company stock. Diversify your retirement savings in something else.
If you are granted company stock, consider steadily selling it and diversifying your investments. FOMO does not feel good but losing your retirement savings is much more painful.
6. Your colleagues will disperse.
Believe it or not, this is a good thing. With LinkedIn, you can always stay in contact. As the years go by, don’t rely on others to contact you. And don’t assume anything if you don’t hear from close friends.
Be proactive and reach out.
7. A lot of good will emerge.
Things may look bleak right after being acquired. It will get better. You will meet new people and learn new things. Your firm may have escaped a worse fate. Write down what you learned.
These will be the “good old days” in 20 years!
I frequently look back fondly at my time at my former employers and beloved colleagues. Many of the people who impacted my life continue to do so in entirely different and unexpected ways. If you are one of those people, please reach out! Or I will!!!
