Sustained value from M&A compounds when the right people are chosen – and meaningfully connected – long after the deal closes. Richard Stein, CEO of talent intelligence advisor HSiQ – a Hunt Scanlon Company – examines the intersection of dealmaking and human capital risk. “M&A failure is rarely about strategy,” he says. “It is about misjudging people.”
The recent Lex column in the Financial Times, Management Consultants’ New Gravy Train: Buying Other Companies, is timely. Hot on the acquisition trail, some firms are now following their own M&A playbooks by accelerating deals while simultaneously reducing headcount.
The paradox is striking. Talent is being acquired, exited, and recombined at speed, often on compressed and unforgiving timelines. Yet, according to Richard Stein, CEO of talent intelligence firm HSiQ based in Greenwich, Conn., value is not created at signing.
“In people-driven deals, value is determined entirely by what happens next,” he says.
“M&A failure is rarely about strategy. It is about misjudging people – who should lead, who should stay, and how teams actually come together under pressure.”
Too often, he noted, post-merger integration defaults to structures, systems, and process checklists, while underinvesting in the real work: identifying the right leaders, clarifying decision rights, aligning incentives, and enabling teams to function as one.
“M&A failure is rarely about strategy. It is about misjudging people – who should lead, who should stay, and how teams actually come together under pressure,” he notes.
Intersection of Dealmaking and Human Capital Risk
“This is precisely where the implications for HSiQ and our M&A practice, Hunt Scanlon Ventures, are most pronounced,” he says.
“As the global authority on leadership, boards, and senior talent, Hunt Scanlon sits at the intersection of dealmaking and human capital risk – an intersection that is becoming increasingly exposed,” he adds.
“M&A becomes a catalyst for growth only when it is approached first as a human challenge, not merely a strategic transaction.”
The outcomes are predictable. Most acquisitions underperform. And when deals are fundamentally about people – professional services firms, advisory businesses, investment banks – the risk compounds if leadership, culture, and team dynamics are treated as secondary considerations.
M&A is a Human Challenge, Not Just a Strategic Transaction
“What’s changing is the speed,” says Mr. Stein. “Companies are buying talent faster than ever, but they lack real-time intelligence on who they’re acquiring, how those leaders have scaled before, and where friction will emerge. That’s the gap HSiQ is designed to close.”
What HSiQ brings to the table is fresh thinking and new approaches, says Mr. Stein.
“In our view, M&A becomes a catalyst for growth only when it is approached first as a human challenge, not merely a strategic transaction,” he said.
“When governance is explicit, leadership choices are intentional – and teams are deliberately designed rather than left to collide.
HSiQ Insights Lab was created to examine exactly this intersection – where data, technology, and human potential converge. As the workforce contracts, advantage will not come from doing more with less. It will come from seeing more of what already exists – and using it intelligently.
For more information on how HSiQ can help your business succeed, please contact us today.
Article By
Richard Stein
Richard Stein is CEO of HSIQ. He has a distinguished career supporting the C-suite of many of the world’s top corporations and financial services organizations in all aspects of talent acquisition, development and retention. Richard is one of the industry’s top advisors with experience across the Americas, Europe and Asia Pacific.
