M&A Team Spotlight

Throughout the years, our team has completed multiple acquisitions. All have focused on delivering positive outcomes for employees, clients, and our combined businesses in close collaboration with the firms' owners.

Estes Parker, PE, Director of Integration, plays an essential role in developing and executing integration plans. He collaborates closely with various departments to facilitate seamless transitions, supports change management initiatives, and ensures clear and effective communication with all stakeholders to achieve a successful integration. With firsthand experience, Estes possesses a deep understanding of the complexities involved in the process. 

In this Q&A, Estes further details why prioritizing integration is essential to ensure successful acquisition transitions and describes valuable integration lessons learned as we’ve welcomed new partnerships to our team.

What does the Director of Integration role entail, and why is it important to the acquisition process? 

Thoughtful and effective integration can make or break an acquisition. Commonly, integration management is the responsibility of company leaders who are already inundated with daily roles, making it challenging to focus efforts on the integration process. 

The establishment of a dedicated M&A team and Director of Integration has significantly enhanced our organization's ability to conduct thorough due diligence on cultural and operational alignment, engage in pre-close planning, and manage the integration timeline effectively. This focus and the well-defined integration process are valuable for both our organization’s leaders and the incoming firm to maintain trust and allow teams to thrive in the new environment. 

Describe how your role interacts with Westwood’s corporate service team and operational leaders. 

As the Director of Integration, my role is to ensure that the integration process is effective and aligned with the strategic goals of both organizations. I oversee the integration process by developing a “playbook” with input from Westwood’s corporate service and operational team leads, leveraging project management tools to synchronize all parts of the business during the transition. Additionally, I assist with change management, identifying interdependencies while helping to resolve any conflicts that may arise. This collaborative approach with corporate service teams and operational leaders is essential.

We affectionately refer to my role as the “Rosetta Stone.” I must be well-versed in the workings of each corporate service team and distill their messages and responsibilities into actionable plans for both our team and the incoming firm.

When does the integration process start, and why is it so important? 

Our team starts thinking about integration as early as the initial meeting with a prospective partner firm. As part of these conversations, we outline the general timeline for integration and explain our process. Later, once full due diligence commences, we refine our integration playbook to the specifics of the partner firm. The full integration timeline varies by circumstance, and we take a partnership approach to transitioning systems, processes, and brand in a manner that maintains effective momentum without causing undue disruption to the incoming business. 

This diligent and early focus is crucial because acquisitions inherently involve risks, such as disruptions to operations, employee discomfort, and the potential for uncertainty. A well-executed plan mitigates these risks by systematically addressing potential challenges and moving toward the goal of full integration. By maintaining transparent communication with all stakeholders and explaining the “why” behind decisions, we reduce uncertainties and facilitate a smoother transition. 

What are some key lessons you’ve learned from recent integrations? 

Flexibility
While adhering to the general integration plan and timeline is essential to maintaining momentum and progress, challenges and unexpected issues will arise, necessitating adjustments. Ensuring that all corporate services are aligned and effectively communicating with each other helps prevent changes in one area from derailing another. The need for cohesive coordination was a key factor in establishing the role.

Proactive, with Concern 
We proactively address employee concerns throughout the process, fostering a positive work environment. We are cognizant of our efforts to make employees feel supported, informed, and engaged, ensuring their well-being and  leading to high retention rates. We create opportunities for incoming teammates to connect with our organization, understand our values, and build trust in leadership and the firm’s mission. Acknowledging that it's normal for people to fear change, we inform employees early about structural changes and prepare communication strategies to address potential issues. Our goal is to earn trust, reinforce the benefits of the acquisition, and ensure the incoming team feels valued and supported throughout the process.

“One Team” Approach
While some organizations choose to operate acquired businesses as stand-alone entities, our team has experienced significant success with a fully integrated "One Westwood, One Team" approach. This cohesive integration allows for a unified brand image that leverages the reputations and market positions of both companies. As a result, it not only strengthens our overall competitive position but also enhances our ability to attract employees, partners, and customers who appreciate the enhanced value proposition, geographic reach, and technical expertise.

How does feedback from leadership on both teams influence the transition process? 

During the integration planning phase, feedback from both teams' leadership is considered when creating the timeline and milestone tasks. Key factors such as client communication, brand awareness, market presence, contract reviews, and employee needs are all thoroughly evaluated.

A recent example highlights leadership from the incoming team, who wanted to accelerate the integration process to ensure that their teams' excitement did not erode over a long duration. They were excited to become Westwood as soon as possible!

Randy Alexander, CWB, a senior leadership team member from Peloton Land Solutions, said, “Quick disruptions were preferred to shorten the time that the teams were exposed to change, decreasing the duration of uncertainty and ushering in the new reality quickly.” 

An acquisition integrator role is pivotal to an organization's success in navigating the complexities of mergers and acquisitions. With a well-defined integration strategy that prioritizes communication, flexibility, and a unified approach, an organization can effectively address the challenges that arise during the transition period. By engaging with leadership from both teams and fostering a supportive environment for incoming employees, the organization not only mitigates concerns but also enhances employee retention and satisfaction.

As our organization continues to grow through strategic acquisitions, the lessons learned and the proactive measures implemented will ensure each integration is a success for all involved.