Beyond the Stars: The Hidden Cost of Talent Attrition in M&A

When companies do M&A, the focus is always on the visible: revenue, product, market share, and the top leadership team. “Let’s retain the CEO,” “Lock in the C-suite,” or “Don’t lose the top 10% of performers” are the KPIs. But what rarely gets attention is the layer underneath: the quiet talent, the people who don’t have big titles but keep the company humming.

They aren’t in the press release. They’re not on the due diligence list. But when they leave, things start to fall apart slowly, quietly, and sometimes irreversibly.

The Real Blind Spot: Who Actually Keeps the Engine Running?

Every company has what I call “glue people.” They don’t manage teams. They don’t own budgets. But they know the workarounds that keep legacy systems running, they hold long-standing relationships with customers or vendors, they can navigate across silos to get things done and finally, they represent the cultural heart of the organization

And yet, when M&A happens, they are often ignored. When they leave, their exits are categorized as “non-regrettable.” But make no mistake, some of these losses are the most regrettable of all.

Why They’re Missed

Three reasons:

1.        No Formal Power: They aren’t leaders on the org chart. But they have influence and know-how that’s hard to replace.

2.        They Leave Quietly: No big announcements. No counteroffers. Just a resignation, a handover, and silence.

3.        They’re Assumed Replaceable: But while the task might be replaceable, the embedded knowledge, trust, and informal networks aren’t.

Why It Happens in M&A

Most attrition during M&A isn’t inevitable. It’s the byproduct of poor listening, cultural ignorance, and rushed integration. Here’s where acquirers go wrong:

1. Not Listening to the Founder or Long-Timers

Founders and legacy leaders know who the glue people are. But often, they’re sidelined after the acquisition. Their insight about who really matters is lost.

2. Misreading the Culture

Org charts tell you who’s in charge. But they don’t tell you who has trust, who keeps morale up, or who smooths over internal friction. Those networks disappear when you impose structure without understanding the informal dynamics.

3. Forgetting That Stability Has Value

Everyone wants to move fast, integrate, extract synergies, optimize. But when people feel unsettled or undervalued, they don’t wait around to be told what’s next. They leave.

A More Practical Approach to Talent Retention

If you’ve read my essays before, you know my bias: don’t impose, don’t preserve but amalgamate. Blend the best of both. That applies to talent too. Here is one approach -

Step 1: Map the Informal Org

During diligence or right after close, observe - Who do people trust? - Who do they go to when something breaks? - Who quietly steps in during a crisis? - Who holds the culture together?

Ask the founders. Ask mid-level managers. You’ll get the same names again and again. That’s who you focus on.

Step 2: Engage Before You Retain

Don’t wait for a resignation to realize someone matters. Show them they’re seen. Invite them to integration discussions. Acknowledge their impact publicly. Ask their opinion on how things actually work.

Step 3: Build Retention from the Middle Out

Most retention packages go to the top. But consider offering small but meaningful incentives to operations coordinators? Or give flexibility to trusted customer service leads? create roles for experienced generalists to help with integration?

Retention isn’t always about money. Sometimes it’s about being heard, respected, and not taken for granted.

Step 4: Avoid Cultural Shock-and-Awe

Don’t impose foreign systems or culture overnight. If the acquired company thrives on trust and relationships, a sudden rollout of dashboards and KPIs won’t inspire confidence, it will trigger fear. Blend practices gradually. Keep the soul of the business alive.

Step 5: Watch for Silent Signals

Regrettable attrition isn’t the first sign of trouble. Earlier signs include - Withdrawal from collaboration - Shorter meetings, less input - More sick days or vacation requests - Friction that didn’t exist before.

These are signs of disengagement. Address them early.

A Story That Still Stings

In one integration, the acquiring company focused on systems, contracts, and top talent. They missed a woman in ops, 35 years in the company, no direct reports, no flashy title. But she coordinated regional logistics like clockwork.

When she left, no one knew the fallback plans. Deliveries were delayed. Complaints surged. Two managers quit. She was written off as “non-regrettable,” but her absence cost more than any exec exit.

Lesson: visibility and value are not the same thing.

Final Thought: Talent Is Not a Layer—It’s a Network

People don’t stay because of contracts. They stay because they feel respected, included, and trusted. The top 10% of performers may carry the strategy, but the next 50% carry the company.

If you want to preserve value in an acquisition, go beyond the stars. Find the glue. Protect the network. Blend the best. And never forget:

The people who matter most are sometimes the ones you see the least.

Which leads naturally to the next blind spot: even if you retain the glue, how do you guide everyone through the disruption of change itself? Because change isn’t just a project but it is an emotional journey. And maybe the real question is: can change ever be managed, or can it only be led?