When integrating two companies, who should lead?

Highly acquisitive companies need the right person in place to ensure integrations go smoothly.

Without that guiding hand, combining two businesses can bring hurdles that delay value creation, or in the worst-case scenario, cause star employees to leave.

Due to its importance for acquisitive companies like large fortune 500s or private equity platforms, the discipline of “integration” has inspired a variety of roles like “vice president of integration,” “strategic projects lead” or “chief of staff,” whose sole function is to ensure the process goes smoothly.

To make the right hire, companies must look at the right backgrounds. Here are the three types of people who thrive in integration leadership positions:

Corporate development specialist

A corporate development leader likely has the skillset to lead successful integrations, especially if they’re tenured.

“Proven commodities,” as we call them, can lead every aspect of the deal lifecycle, from sourcing through integration. But even though these executives can do the job, they may not want to.

Someone who’s built their career in corporate development will be used to earning the majority of their compensation from executing deals, not managing integration alone. While the right leader of this background probably exists, your talent pool will be smaller, and the sell will be harder.

Industry insider

The industry insider may not come with the “academy training” from an investment bank, but they’ve overseen multiple integrations in your field. This profile is harder to define as far as career path and title, but their exposure to your industry can be invaluable for understanding the nuances of integration.

For example, a heavy manufacturing company will have a different culture than a white collar services company. If your industry insider knows manufacturing inside and out, they may be a good fit to lead an integration.

Importantly, since this profile doesn’t have the reps of a corporate development leader, you must ensure they have their own playbook to successfully run an integration. This playbook should be built from their own experience, and they should be proven through multiple past integrations.

Former strategy consultant

If you’re looking for a true integration strategist, an ex-consultant can certainly do the job.

Executives who have worked for a leading management consulting firm have likely been exposed to integration through their work with clients, either to advise on one aspect of the transition or to manage the entire process.

Former consultants bring strategic expertise to solve most business problems, but they’re also coached extensively on how to build rapport with a range of personalities, which can be invaluable during a period of rapid change like integration.

These individuals can be easier to recruit because they often leave their consulting firms to pursue a career where they can see the long-term impact of their work, instead of being brought in as a temporary advisor. However, they’ll often want to stretch outside of integration itself, so a limited role can be less appealing.

Additional considerations

The size and volume of integrations you’re planning have a direct impact on the best profile to lead them.

If you’re completing double digit acquisitions in a calendar year and have a defined strategy for how to integrate them, an industry insider could be your best bet for leading a repeatable process and addressing industry-specific issues as they arise.

Another situation we see companies in is figuring out how to integrate founder-owned businesses, where leading a team through their first acquisition is equally if not more important than operationalizing systems and sifting through spotty data. Ex-consultants with strong EQ and a boots-on-the-ground approach can be more effective here.

The right profile for your company is never a cookie-cutter mold that you can take to market and find instantly, but the thought exercises above will help you get closer to the person best suited to lead your integration efforts.