We love to talk about M&A activity. We think of mergers and acquisitions as one of the best ways to scale your business quickly. The reason is simple: It's often faster to integrate a new company that is already successful into your business than it is to build comparable functionality yourself. In the end, you'll have to consider whether you want to build your own solutions or buy companies that'll help you scale. But if you do go for M&A activity, we recommend seriously considering how you use data along the way.
In our Scale-Up Hacks video, "M&A Success: Put People Metrics on Your Integration Dashboard," Byron Lichtenstein, a Principal at Insight Partners, speaks from his experience working with companies in our portfolio. At Insight, we typically support businesses through approximately 50 M&A projects each year. The questions we always get are, "What am I missing? What is everybody asking that I'm not taking account for?"
Byron explained that many executives enter an M&A process with retaining their people as a key goal, but when it comes to dashboard metrics, they are tracking all kinds of data, none of which are about people. We recommend you identify your key people and measure your progress in keeping them on your analytics dashboards.
Byron provides more advice on how to manage this process and keep workers engaged in the video above. Check it out for more of his ideas about how you can keep employees on board as you pursue M&A activities.