Leaders should identify the specific goal a deal would serve, such as adding a capability, entering a market or addressing succession. Jared Freeman describes taking time to align OnPath’s board on what it wanted in a partner before seeking one. Bill Gould recommends defining what each organization stands to gain and planning for how they will work together.

The answer depends on strategic fit, speed and the work required to integrate what is acquired. Freeman explains that OnPath was building its mortgage operation when the opportunity to purchase Heritage Bank emerged. The bank had expertise OnPath wanted and could help it advance that goal sooner, though the purchase also required substantial time and resources.

Gould says integration planning should start alongside due diligence. Leaders need to consider the future operating model, people and technology decisions before closing. Freeman’s experience shows that even after a merger becomes official, bringing systems, practices and teams together can take considerable time.

A merger changes reporting relationships, routines and employees’ sense of belonging. Gould emphasizes designing the future leadership team and deciding what to carry forward from each organization. Freeman notes that people may experience a “merger of equals” differently, making honest communication and time to build trust essential.

Growth alone does not answer the question. Gould recommends creating a scorecard for each deal before it closes, based on its intended outcomes. Depending on the goal, that could include new capabilities, technology, employee retention, market reach or member value. Leaders can then assess results against the reasons they pursued the deal.

Freeman urges leaders to be candid about the time and people a merger will require. Gould adds that an organization may need to pause other major priorities so its teams can focus on integration. Both distinguish completing a transaction from building a combined organization that delivers lasting value.