You didn’t merge, you multiplied the mess
It’s Day One. The deal is done. The LinkedIn announcement has gone live, and the office is buzzing with excitement. You’ve just combined forces with another financial planning firm with the objective of greater reach, more clients and enhanced capability. What could go wrong? Well…Quite a bit, actually.
The Patchwork Problem
You walk into the office and quickly realise that while the logos may have changed, not much else has. Your team is still using your old CRM, while the new team is using theirs. Compliance processes differ. Client onboarding is inconsistent. Even the way meetings are run feels like two different worlds colliding, anxiety slowly sets in.
What you’ve got isn’t a unified business, it’s a patchwork of legacy systems, habits, and cultures.
A recent study found that 48% of SME mergers fail to meet their strategic objectives, with poor integration cited as the primary cause in over 80% of those failures. The stakes are high, even for smaller businesses. [forbes.com]
When Two Become… Something?
In our experience supporting advice businesses through merger transitions, we’ve seen a common pattern: the deal gets done, but the integration doesn’t. Each business continues doing what its always done, assuming things will “settle in” over time. But without a clear plan, what actually settles in is a business that’s technically merged, but operationally fragmented, with issues compounding.
We’ve seen it before. One business assumes the other, especially if it’s larger, has “better” (perceived) systems, so they adopt them wholesale without question. Or, the smaller business is more agile and tech-savvy, but its practices are dismissed in favour of legacy processes. Sometimes, both businesses just keep doing what they’ve always done in tandem, hoping it’ll all magically align.
Spoiler alert: it doesn’t.
A Cautionary Tale
We recently worked with a business that had already undergone two mergers in quick succession. On paper, it looked like a success story of rapid growth, increased market share, and a broader service offering. But under the surface, things were unravelling.
Each merger had been executed without a clear integration strategy. Teams were working together but there was no clear accountability, systems and processes were left relatively untouched and incompatible, compliance issues were starting to creep in, and cultural alignment was non-existent. When a third merger opportunity came knocking, an objectively great fit, they had to pause. Not because they didn’t want to grow, but because they hadn’t done the hard work of stitching the previous mergers together. They were at capacity, not in terms of clients, but in terms of operational chaos.
Their Way, Our Way, The New Way
Without a clear integration plan, you end up with a business that’s neither here nor there. It’s a bit of “their way,” a bit of “our way,” and a whole lot of confusion. So, how do you avoid the patchwork trap?
The key is to move beyond “their way” or “our way” and co-create a new way. This means:
Assessing strengths: What does each business do well? What systems, processes, or cultural elements are worth keeping?
Designing intentionally: Don’t default to the path of least resistance. Build a new operating model that reflects your shared vision.
Communicating clearly: Integration isn’t just about systems, it’s about people. Keep your team informed, involved, and inspired.
Planning early: Integration should start before the ink dries. Set up an integration team (or call-in experts, yes, that’s a plug for Tangelo Advice Consulting), define milestones, track progress and manage risks.
The first 100 days post-merger are critical. This is when you set the tone, align leadership, and start blending systems and cultures. Without a roadmap, you risk losing momentum, talent, and client trust.
And while the patchwork analogy might be a bit overused, the point remains: a business built from mismatched parts won’t hold together for long.
Bringing It All Together
At Tangelo, we’ve worked alongside advice businesses navigating the real work that begins after the deal is done. We’ve seen what happens when integration is overlooked and more importantly, what’s possible when it’s done right.
If you’re planning a merger, or still finding your feet after one, now’s the time to pause, reflect, and reset. Because the real value of a merger isn’t in the signatures or the headlines. It’s in the clarity, cohesion, and confidence you build from here.
If you’re still hoping things will ‘settle in,’ it’s time to stop hoping and start integrating.
If you’re not sure where to begin, our Fit 2 Merge Diagnostic is a simple, free way to understand your merger readiness and uncover the areas that need attention before issues compound. It’s a practical first step toward building the business you thought you were merging into. Take the Fit 2 Merge Diagnostic and if you need support from there, we’re ready to help you build the business you thought you were merging into.