Case study: How a family-owned company lost key people after a merger

I recently had an eye-opening conversation with a former employee of a Belgian family business. He had worked there for nineteen years, making him deeply familiar not just with the job, but with his colleagues and the company’s day-to-day operations.

When the company decided to sell a significant minority stake to a publicly listed partner, a wave of change followed. To manage the transition, external change managers from a well-known international consultancy were brought in. Armed with sleek PowerPoint decks full of theoretical models, these consultants had a clear mission: prepare the organisation for the future. But no one seemed to ask what might be lost in the process.

The former employee described the shift as a major cultural rupture. The core values of the family business were replaced with a more formal, distant approach. The new advisors, he felt, were out of touch with the company’s daily reality. They spoke in highly academic terms that didn’t resonate with most employees. Moreover, little effort was made to listen to the long-time staff.

He gradually felt out of place, lost motivation, and eventually resigned. In doing so, the company didn’t just lose a loyal colleague, but nineteen years of experience, insight, and dedication — a loss that comes at a high cost for any organisation.

WHAT WENT WRONG?

Change in itself isn’t the problem. In order to grow — or even survive — companies must evolve. But when change is imposed without regard for what connects people to their workplace, it rarely leads to meaningful progress.

What happened here is a common pattern in mergers and acquisitions:

• Cultural friction

A publicly traded company and a family-owned business operate on fundamentally different cultural wavelengths. Without translation or negotiation between those worlds, employee distrust quickly follows.

• Context-blind consultants

External experts can be valuable — but only if they know how to connect with the organisation’s actual dynamics. When theory outweighs human reality, employees don’t feel included in the process; they feel steamrolled. This breeds frustration, leading to disengagement and turnover.

• Lack of internal dialogue

In this case, there was little space to discuss the impact of the changes. What should have stayed the same? What truly needed to change? What was up for negotiation? Many questions went unanswered, leaving employees alienated.

The consequence: loss of valuable employees

Long-standing employees hold more than just their job descriptions. They carry informal networks, operating methods, and the unwritten history of a company. Their departure often causes more disruption than the numbers show.

THE PILLARS OF A SMOOTH AND SUSTAINABLE TRANSITION

Change doesn’t have to be a battle — but it does require careful guidance based on these core principles:

• Mediation as a starting point, not a last resort

Proactive engagement is crucial. Don’t wait for tensions to escalate. Identify early on where concerns, resistance, or silent pushback may arise. Give people a chance to speak — if needed through a neutral, discreet third party.

• Negotiation as a bridge between old and new

Mergers and acquisitions are not just legal exercises — they are a meeting of minds, values, and working styles. Negotiation here isn’t about winning or losing; it’s about building bridges between systems and people.

ADVICE FOR COMPANIES REGARDING MERGERS AND ACQUISITIONS

• Involve informal leaders

  Who holds influence among your staff? Don’t sideline them. Involve them early in the transition, even before the broader announcement. Convincing them of the value of the change is critical. And don’t treat communication as a one-way street — really listen to their input.

  
  

• Translate theory into practice

  ADKAR, Kotter, Lewin… these change models can be helpful, but only if they speak to people’s lived experience. If they don’t connect, they become empty frameworks. Tailor your language, tone, and examples to your audience.

  
  

• Create safe spaces

  When tensions run high, a trusted, neutral confidant is worth their weight in gold. Make sure employees have someone — internal or external — they can talk to confidentially. When people feel heard, they’re more likely to actively support the transition.

IN CONCLUSION

People rarely leave because of change. They leave because they no longer recognise their workplace. Because their voice goes unheard. Because their years of commitment suddenly seem to count for little. Successful change starts with recognition — of people, of culture, of what’s worth preserving.