Human Capital lessons from a sell-side MD
As MD, Linka Cameron led the successful exit of the Elgin Free Range Chickens group of companies in 2021.
Linka has witnessed firsthand the importance of the human side of large-scale business transitions. Why? Because it impacts the wellbeing of employees - and the health of the transaction.
LINKA’S KEY INSIGHTS
Over-communicate to build trust: Uncertainty during M&A can lead to rumors and anxiety. Clear, transparent communication, even without all the details, helps maintain trust and prevent misinformation.
Trust is essential for integration: Trust between leaders, employees, and new management is key to successful collaboration. Leaders can build trust through consistent and authentic communication.
Prioritise the human element: The people side of M&A is often overlooked. Showing empathy and addressing the emotional impact on employees is crucial to ensuring they feel valued and supported throughout the transition.
Claire: Can you share a bit about your experience with mergers and acquisitions, and how you first got involved in this space?
Linka: My experience with M&A started during my time at Elgin. Over the 15 years I spent there, we had a gradual buildup toward succession planning. The founder, Jeanne, who was the 100% shareholder at the time, began thinking about external investment or selling a portion of her shares. At that point, I was stepping into the General Manager role, taking on more responsibilities. Jeanne started having high-level discussions with me about her plans, but no one else in the company was aware at the time. From then, our focus shifted toward preparing the business for a possible exit or significant change, which eventually led to us selling to a private equity firm. The acquisition process took about two years from the point Jeanne began seriously engaging with investment companies, and it was a very deliberate and strategic journey. It was important for Jeanne not to rush the exit, so she took her time finding the right partner.
Claire: There are so many extra jobs to be done in preparation for an exit. How did you and the founder split the workload and what was your focus area?
Linka: Jeanne managed the due diligence and negotiations with the investors, while I focused on communication with the internal team. We had a workforce of about 600 people, and it was crucial to keep them informed and engaged. I was responsible for making sure the business kept running smoothly and that the employees were informed about what they needed to know. We had regular workshops with the ExCo team and worked with a coach who sat in on our weekly operational meetings. This gave us the opportunity to open up conversations about the uncertainties that people were feeling. We adjusted meeting agendas as needed to address fears, concerns, or blind spots. It was about making sure the human side of the business was looked after, while Jeanne managed the financial and legal aspects.
Claire: It sounds like you and the founder paid a huge amount of attention to your human capital from day zero. Why do you think the human side of M&A is often overlooked?
Linka: I think it’s easy for leaders to get caught up in the financial and legal aspects of the deal. They focus on the numbers, the contracts, and the due diligence, and forget that at the heart of the business are people. Trust is often a blind spot in leadership, but it’s essential. Without trust, you can’t build a cohesive team or keep people engaged during such a significant transition. I also think there’s a lack of empathy in many of these deals because they become so transactional. Leaders need to remember that these deals are not just about assets—they’re about people’s lives.
Claire: What were some of the specific challenges you faced in managing the human side of the deal?
Linka: One of the biggest challenges was the uncertainty that an M&A process creates. People start speculating, and without clear communication, it leads to rumours. Some employees began to assume things about who might acquire us, which just added to the anxiety. The key for me was to over-communicate, even if we didn’t have all the answers at the time. I’d rather give people the information we had, even if it was incomplete than leave them in the dark. The transparency helped build trust. Another challenge was balancing the need to keep the business stable while going through such a big transition. We made a conscious decision not to take on any new, disruptive projects during that time. We consolidated our focus and wanted to make sure the company was as stable as possible, especially considering external risks like the bird flu that hit the industry at the time. Any major disruption would have impacted the deal.
Claire: One of the major markers of M&A deals gone wrong is the loss of employees. What was your attrition like during and after the exit?
Linka: Attrition was very low. We only had one ExCo member leave, and he had a previous history with acquisitions, so his decision to resign was largely based on his past experience. In fact, the rest of the team stayed on, and I think that was a direct result of the open communication we maintained. We had difficult conversations, and there were a lot of emotional moments—tears were shed, and fears had to be worked through. But in the end, those conversations brought the team closer together. It strengthened the sense of community and created a tight-knit group that could rely on each other.
Claire: That is absolutely incredible, it sounds like you and Jeanne should be running a M&A Masterclass. Besides communication, what do you attribute this success to?
Linka: Trust was a big focus for us during the deal. One of the best pieces of advice I received during this process was to operate from a place of trust, especially when dealing with the new board, CEO and CFO. It’s important to make a decision to trust the new team from the start and to give them the benefit of the doubt until proven otherwise. Without trust, you can’t build a strong working relationship or a sense of purpose within the team. And trust only comes with transparent and consistent communication. We also appointed a coach to help us identify blind spots. This was invaluable because sometimes, as leaders, you’re too close to the situation to see what’s missing. The coach was able to point out areas where we needed to improve communication or address concerns that might have otherwise gone unnoticed.
Claire: You saw this deal run its full course, from ideation right through to PMI. At what point in the deal lifespan did you start thinking about the human side?
Linka: We started focusing on the human side as soon as the due diligence process started. Jeanne had a conversation with the ExCo team early on, and from that point, I took on the responsibility of communicating with the team. While the due diligence required a lot of input from the ExCo, I focused on making sure the broader workforce was kept informed and that their concerns were addressed. We made sure to dedicate time to discussing the human aspect of the deal because we knew it was crucial to keeping the business running smoothly during the transition.
Claire: Looking back, is there anything you would have done differently?
Linka: If I could go back, I might have communicated with key external stakeholders a bit earlier. Some of them, like our suppliers, also had concerns about the uncertainty of the deal, and I think giving them more time to process the change would have been helpful. That said, it’s a delicate balance because communicating too early can also negatively impact the deal. Timing is everything. Internally, I don’t think I would have changed much. We did our best to keep the lines of communication open, and the team was incredibly supportive of one another.
Claire: You were MD on the sell-side of the deal. Was there anything done on the buy-side to engage employees post-acquisition?
Linka: Not much, to be honest. Looking back, I realise we missed an opportunity there. There wasn’t a big announcement or a celebration to mark the beginning of the new era, which I think would have helped create some excitement. It felt like we were so focused on managing the deal that we didn’t take the time to properly mark the transition, and that was a missed opportunity. I think that contributed to a sense of business-as-usual, which wasn’t ideal. There’s a lot of value in taking the time to recognise the change and rally the team around the future vision.
Claire: Any hard-won words of advice that you would give to other leaders going through the purchase or sale of a business?
Linka Cameron: Start the communication process early and give people time to process the changes. Rushing through a deal is never a good idea, especially when it comes to the people involved. Be transparent and make sure you’re being selfless in your approach. It’s not about serving your own interests—it’s about leaving behind a legacy and honouring the loyalty that employees have shown over the years. You also need to have clarity about who is leading what part of the business. During our process, there wasn’t always 100% clarity about leadership roles post-acquisition, and that caused some friction. It’s important for everyone to be aligned on vision and expectations.
WRITTEN BY CLAIRE KEET