7 Ways To Build Trust After SMB Acquisition

Acquiring an SMB is just the start - building trust during integration is what ensures success. Employees often face uncertainty about job security, roles, and leadership promises. If not addressed, this leads to low morale, reduced productivity, and turnover. The first 100 days are critical for setting the tone. Here’s a quick breakdown of trust-building strategies:

• Communicate openly: Address concerns immediately with transparency.
• Align goals and values: Create a shared vision and involve employees in shaping it.
• Encourage collaboration: Break silos with cross-team projects and buddy systems.
• Follow through: Keep promises and ensure actions match words.
• Seek feedback: Act on employee input to show their voices matter.
• Build connections: Foster personal relationships across teams.
• Recognize efforts: Celebrate achievements to show appreciation.

1. Communicate Openly from Day One

Transparency and Clarity in Communication

When announcing an acquisition, trust begins with addressing employees' immediate concerns. Naturally, their minds go straight to three pressing questions: "Do I still have a job?", "Who will I report to?", and "How will I get paid?". Providing clear answers to these questions right away helps reduce anxiety and shows that leadership prioritizes openness.

Take the example of London Life Insurance Company during their acquisition of The Prudential Insurance Company of America's Canadian operations. This $20 billion CN deal required careful planning. They began integration efforts six weeks before the public announcement, ensuring that by the time the news broke, they had finalized their structure, communicated with key teams, and were ready to address stakeholder concerns. This proactive approach enabled them to answer questions confidently on day one, setting the tone for a smoother integration process.

Speed trumps perfection. A drawn-out integration process can lead to a 20% to 50% drop in productivity. Betty Jane Hess, former head of acquisition integration at Arrow Electronics, summed it up perfectly:

"Tell them what you can, tell them as soon as you know it. And if you can't tell them, say, 'I can't tell you that, but as soon as I know it I will'".

Using multiple communication channels - like town halls, emails, and Q&A sessions - helps dispel rumors quickly. Pulse surveys can also gauge whether employees understand the acquisition's purpose and feel reassured in their roles. Consistent messaging across these platforms builds trust organically.

If some decisions are still pending, it's better to acknowledge the uncertainty than to remain silent or give vague answers. Employees value honesty, even when the answers aren't final. Establish a clear narrative that explains the acquisition's goals and potential benefits, and follow it up with regular updates. Combining timely, transparent communication with open feedback creates a strong foundation of trust during the integration process.

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2. Align Goals and Values Across Teams

Alignment of Goals and Values

Once communication is clear, the next step is bringing everyone onto the same page with shared goals and values. Without a unified vision, uncertainty can creep in, leading to mistrust. Employees often fill in the blanks with speculation when leadership fails to explain why an acquisition occurred or where the company is heading. This lack of direction can be damaging.

Here’s a telling statistic: 88% of employees at financially successful companies feel heard, compared to just 62% at underperforming ones. When teams rally around common objectives and values, they not only work more efficiently but also develop stronger trust in leadership. For employees left in the wake of an acquisition, understanding the "why" behind the changes is crucial for embracing the new direction.

However, cultural clashes can derail this process. Teams with conflicting values often struggle to collaborate smoothly. Instead of imposing one company’s culture on the other, it’s smarter to assess both sides. Surveys, interviews, and assessing competitors during due diligence can help identify the core values of each organization. Then, blending the best elements from both cultures creates a new, shared identity that respects the past while moving forward.

Take Disney’s acquisition of Pixar as an example. Disney’s leadership not only communicated a clear vision for the future but also showed genuine respect for Pixar’s existing culture. Similarly, when Microsoft acquired LinkedIn, they emphasized operational autonomy and mutual benefits from the outset. This approach aligned both companies’ values early on and reassured stakeholders. These examples highlight the importance of preserving what works while building something better together.

To solidify trust, establish a "social contract" that applies to everyone. This could include clear guidelines for communication and reporting structures to ensure no group feels excluded. Appointing cultural ambassadors from both companies can also help bridge gaps by modeling collaboration. Most importantly, involve employees in shaping the new culture. When people have a hand in defining the direction, they’re more likely to feel invested rather than resistant.

As Niki St. Pierre, Managing Partner at NSP & Company, explains:

"Communication devoid of this foundation [change management and unified vision] becomes hollow, failing to inspire action or commitment to the new entity's vision".

3. Create Cross-Team Collaboration Opportunities

Cross-Team Collaboration and Integration

Once open communication and aligned values are in place, cross-team collaboration becomes the next critical step to building trust during an acquisition. Shared goals don’t mean much if teams stay isolated. The challenge? After an acquisition, teams often stick to familiar routines, creating silos that block integration. Breaking these barriers requires intentional efforts to encourage real interaction and relationship-building.

One approach is to form cross-functional teams that bring together members from both organizations. These teams can work on integration projects, fostering a sense of shared ownership. A great example comes from Atlassian’s acquisition of Trello in January 2017. Atlassian introduced "Trellocation", a program where their employees worked onsite at Trello’s offices for an entire year. This hands-on collaboration bridged gaps in knowledge and allowed informal but valuable insights to flow naturally.

Another strategy is to implement a buddy system. Pair employees with similar roles across the two organizations to create a safe space for questions and build personal connections. Additionally, identify and engage long-term, trusted employees as "hidden leaders" to join integration task forces. These individuals can help spot and address potential issues before they escalate. To streamline collaboration, document clear protocols for using tools like Slack or project management platforms. This reduces confusion and keeps productivity on track.

As Betty Jane Hess, former head of acquisition integration at Arrow Electronics, wisely noted:

"Strategy, the deal, the business model; they're all important. But don't ignore the crucial fact that none of it will happen without the willing help of people".

These strategies emphasize the human element of integration - building trust and cooperation across teams to ensure a smoother transition.

4. Follow Through on Commitments

Consistency in Actions and Follow-Through

After an acquisition, trust hinges on one thing: follow-through. You can communicate flawlessly and align values perfectly, but if promises aren’t kept, it all falls apart. Employees don’t measure your intentions - they measure your actions. Organizational change strategist Niki St. Pierre highlights this perfectly:

"Communication must be backed by tangible actions and a post-acquisition workflow. Without the accompanying action, communication is perceived as hollow, leading to skepticism and resistance to change".

The numbers back this up: trusted organizations see a 1.8x boost in employee motivation and cut turnover risk by 50%. But trust isn’t built on words alone - it’s earned by consistently delivering on promises. Deloitte describes this as the ability to "consistently deliver on promises and commitments". For leadership, this means honoring commitments about benefits, timelines, and job security.

A common pitfall is what St. Pierre calls "great initial communication followed by months of silence". This silence breeds uncertainty and erodes confidence. To avoid this, consider creating an Integration Management Office (IMO) - a dedicated team to ensure strategic decisions translate into visible, consistent actions. Lay out clear timelines for changes to performance reviews, compensation, and benefits, and stick to them. Consistency and transparency keep everyone aligned and trust intact.

The first 100 days after an acquisition are critical. Missteps during this period can cause lasting damage. Use tools like pulse-check surveys and regular updates to demonstrate progress. Indecision or inconsistency during this time can undermine the entire integration effort. Employees are paying attention to what you do, not just what you say - make every action count.

5. Ask for Feedback and Act on It

Transparency and Clarity in Communication

Once open communication and shared values are in place, the next step is actively seeking and utilizing employee feedback. After an acquisition, it's crucial to explain the strategic reasoning behind the decision and clearly define what kind of input you're looking for. This openness can help ease resistance and set realistic expectations. Acknowledge any uncertainties that exist and commit to providing timely updates as the situation evolves.

Create clear and accessible ways for employees to share their thoughts, such as town hall meetings, pulse surveys, or anonymous suggestion boxes. These tools not only show that employee expertise is valued but also provide a safe space for candid feedback. Use a mix of communication methods - top-down updates, peer-to-peer discussions, and bottom-up feedback - to ensure that everyone has a voice and to avoid conflicting messages.

Once feedback channels are established, the real challenge lies in turning insights into meaningful actions.

Consistency in Actions and Follow-Through

Feedback only builds trust when it leads to action. High-trust environments thrive when leaders demonstrate that they take feedback seriously. Before sharing any updates, make sure they are backed by a clear, actionable plan. Without follow-through, asking for feedback can come across as insincere.

To manage this process effectively, consider using an Integration Management Office (IMO) to convert feedback into structured, actionable plans. Track key metrics like employee retention rates and the progress of cross-team projects to measure the impact of your actions. The first 100 days after an acquisition are especially critical for setting the tone, so treat feedback as a key performance indicator and address any issues promptly. By systematically gathering and acting on feedback, you reinforce a culture of open communication and accountability that was established in earlier steps.

6. Build Personal Connections Between Teams

Cross-Team Collaboration and Integration

Once feedback mechanisms are in place, the next step is fostering personal connections among employees. When team members see each other as individuals, it helps ease anxiety and breaks down the "us vs. them" mindset that can often arise after an acquisition announcement. Building relationships across both organizations encourages smoother collaboration and helps everyone feel more invested in the integration process.

To strengthen these connections, consider hosting team-building activities outside of the office. These could include informal social gatherings or structured exercises designed to promote teamwork in a relaxed environment. Pair these efforts with mentorship programs that link experienced employees from the acquiring company with those from the acquired business. This not only facilitates knowledge sharing but also nurtures professional relationships that go beyond day-to-day tasks.

Another effective strategy is appointing cultural ambassadors from both organizations. These individuals act as mentors and role models, helping bridge differences and guiding new colleagues through unwritten workplace norms. Their influence can make a big difference in creating a sense of unity across departments.

"By inviting your teams to come together, you can create a sense of community and trust during a time that may feel a little uncertain." - Entrepreneur

Leadership also plays a critical role in fostering connection. During town halls, executives should share personal stories about their own career challenges or past integration experiences. This level of openness helps humanize the transition and sets an example for authentic communication across the organization. To keep a pulse on team dynamics, implement surveys during the first 100 days. These surveys can identify potential feelings of isolation early, allowing leadership to address them quickly.

7. Support and Recognize Your Team

Consistency in Actions and Follow-Through

Building trust after an acquisition goes beyond simply keeping promises - it requires actively supporting and recognizing your team. Without genuine acknowledgment and encouragement, even the most well-intentioned actions can feel empty. While early efforts often focus on communication and collaboration, celebrating milestones is what truly solidifies trust.

Recognition is a cornerstone of trust-building. Research shows that employees in high-trust organizations are 1.8 times more motivated and 50% less likely to seek new job opportunities. Start by acknowledging the team's achievements before the acquisition. This simple yet impactful gesture bridges the gap between past and present leadership, showing respect for the work they've already accomplished. It’s a way to turn promises into tangible actions.

Celebrating early wins can also demonstrate the positive impact of the merger. Take, for instance, a Fortune 50 manufacturing company that approved a $100,000 investment in a new manufacturing line at the acquired company’s site within weeks of the acquisition. This bold move sent a clear message: the parent company was committed to the new team. Similarly, an international computer reseller highlighted how adopting the acquired firm’s purchasing system solved long-standing efficiency problems. They even shared the story in their company newsletter, making the benefits of the merger impossible to ignore.

Public and private recognition - whether through announcements, personal notes, or face-to-face praise - goes a long way in reinforcing trust. For example, London Life Insurance Company hosted a dinner for 30 senior managers and task-force members on the very first day of integration planning. This event not only aligned the team but also showed immediate investment in their contributions.

"Personnel from the parent firm should be instructed to take advantage of any opportunity to praise individuals and groups - publicly, privately, in writing, or in person." - MergerIntegration.com

How to Navigate the First 90 Days Post-Acquisition - The Intentional Owner #15

For those looking to master the art of business acquisition, structured training can provide the necessary framework for these critical early stages.

Conclusion

Building trust after an acquisition is key to maintaining momentum and protecting the value of the deal. Teams built on trust work more effectively, retain key talent, and stay motivated. By focusing on open communication, shared values, collaboration across teams, dependable follow-through, active feedback, personal connections, and recognition, you create an environment where employees feel empowered to actively contribute to the success of the business acquisition.

Acting swiftly and decisively during the first 100 days is critical. This period sets the tone for the entire integration process. It’s your chance to address uncertainties, prove that the merger benefits everyone, and show that actions speak louder than words. Missteps during this time can create long-term challenges, but early successes can set a strong foundation for future growth.

"Trust can fuel readiness, reduce friction, and protect value. The alternative can be costly." - Deloitte

These strategies help minimize integration hurdles. Transparency quells rumors and uncertainty, reliability builds confidence by delivering on promises, empathy addresses the human side of transitions, and capability ensures employees have the tools and training they need to thrive. Aligning these elements can also help avoid clashes that might lead to significant redundancies - potentially up to 30%.

FAQs

What should I prioritize in the first 100 days post-close?

When preparing for a successful integration, it’s crucial to have a clear plan and build trust with both teams and stakeholders. A smart move is to create a 100-day blueprint before the deal closes. This blueprint should outline three key areas: what remains unchanged, what requires immediate action, and what can be addressed later.

Throughout the process, transparent communication and decisive leadership are essential. Aligning team dynamics and values early on can make a significant difference. Move quickly to tackle redundancies and operational challenges - this helps maintain momentum and instills confidence. These steps lay the groundwork for achieving long-term success.

How do I reduce “us vs. them” after an acquisition?

To overcome the "us vs. them" mindset after an acquisition, prioritize open communication and efforts toward integrating workplace cultures. Keep employees informed with clear, transparent updates about changes and progress. Create opportunities to hear their concerns and involve them in decisions when possible - this helps everyone feel included and valued.

Bringing together two company cultures requires focusing on their combined strengths while addressing any points of tension. Leaders play a key role in this process by fostering trust. They should encourage collaboration, deliver consistent messages, and acknowledge team contributions. These steps can transform division into a sense of unity and shared goals.

How can I turn employee feedback into visible action fast?

To respond effectively to employee feedback, start by actively listening and implementing visible changes that directly address their concerns. Tools like surveys, interviews, and audits can help evaluate workplace dynamics and pinpoint areas needing attention early on. Consistent communication and leadership alignment are key to ensuring feedback translates into real action. By prioritizing openness and showing tangible results, you build trust and prove to employees that their voices truly matter.