Acquisition expert: How Dexters should manage its Marsh & Parsons deal

A property business acquisition expert has highlighted the challenges Dexters could face in its recent takeover of Marsh & Parsons.

Dexters acquired rival London estate agent Marsh & Parsons from LSL Property Services last month.

The move creates an agency operating 150 offices across London, with 2,000 colleagues.

Lucy Noonan, founder of acquisition advisory firm Atomic Consultancy, said the way the 300 people in Marsh & Parsons are integrated with the 1,700 staff at Dexters will be crucial to the success of the deal.

She said: “Any two businesses will have different operating procedures, but that’s only the beginning. Integration is primarily about people, helping one group of staff merge successfully with another. 

“Change is fundamentally challenging, and emotions are easily stirred up in the midst of something as significant as a change of employer and colleagues. If the integration is managed well and with respect, it gives the acquisition the best chance of success, but if people are angry, upset, or feel marginalised, the whole process just got ten times harder.”

Highlighting a common pitfall, Noonan said buyers sometimes assume that because their business is the one doing the buying, it must be better.

She said: “This is very often not the case. 

“The business being bought might have a fantastic set of processes, loyal clients, and a great culture, so go in with your eyes open, looking to learn. 

“Don’t go in insisting that everything now happens your way – talk with the team about the ‘best way’ and listen to what they have to say. Humility is a huge asset in business, while ego is the enemy of good sense.”

Marsh & Parsons staff will be looking for some reassurance right from the start, Noonan said, adding: “They will be apprehensive, and some will fear the worst.
“A buyer will be focused on the opportunity presented by the acquisition, but the staff will be thinking about the impact on their lives. 

“Employees tend to have loyalty towards the business owner and their colleagues, rather than the business, so making time to build relationships with staff ought to be every buyer’s priority. It’s nothing more complicated than showing respect for the people whose livelihoods and futures are now in your hands.”

Noonan advises spending time with each person as soon as possible, learning what they do in their role, and what they might be nervous about.

She added: “Get their pension and payroll sorted straight away, as failing to do so will set alarm bells ringing. You could even put in a loyalty bonus for staff to stay with you for the first six months, as a way of stabilising the integration and holding onto key team members.”

She suggests waiting three months before making decisions about staff, adding:  “Some buyers are tempted to save time by trying to assess in advance whether or not a role is needed, relying on job titles in a spreadsheet without real knowledge of the individuals and their roles and skills. 

“The reality is that there are individuals who do far more than their job titles and might be absolute stars in the organisation. You just need to take the time to spot them.”