Yesterday, my wife and I were blessed to be guests at the second-best wedding we’ve ever attended. Obviously, the best was our own 31 years ago — my wife told me to type that! Joking aside, the wedding of Jade and Robert — the daughter and son-in-law of two of our dearest friends — was, without a doubt, the best wedding I’ve ever attended as a guest.
The location was spectacular and the California sunset was gorgeous, but what mattered most was how this merger of two families came together. We witnessed two individuals already rooted in who they were because of their faith, yet becoming a new wholeness because of the foundations of two solid families on whose shoulders they were lifted.
Sadly, statistics show that roughly 40% of first marriages end in divorce. I have every confidence Jade and Robert will never feature in those stats. Their shared faith acts as the anchor that will keep them together — a commitment that rightly supersedes even their love for each other.
You might be thinking, “Paul, this is a lovely sentiment, but this is supposed to be a business column.” You’d be right. But isn’t business really just one set of people making promises to another set of people?
Specifically, I’d encourage you to consider that mergers and acquisitions have many similarities to marriages. Post-merger success can be predicted by how the foundation is laid and how both parties perform after the “ceremony.” Rather than wedding bands, businesses exchange stock, cash and other assets as part of their vows. They make promises that, sadly, are often broken — resulting in a breakup or one party being wooed away by another.
Research shows that approximately 70% to 90% of mergers fail to achieve their goals. While the 40% divorce rate is sobering, the failure rate for corporate “marriages” is nearly double. Just as most marriage failures can be traced to one or both parties failing to keep their vows, the corollary is that most business mergers fail for the same reasons; we just use the phrase “lack of execution.” In both scenarios, people let people down.
Just as I’ve been blessed to observe good marriages grow stronger over time, I’m reminded of a business merger from a few years ago that has since evolved into an even greater enterprise — one that continues to create jobs and serve more clients worldwide. While this merger is public knowledge, I’ll refrain from naming the two companies that decided to “get married.” Because they honored their vows to each other, their “children” — the shareholders and employees — continue to blossom from that union.
For Shareholders: The merger generated immediate value by diversifying the product portfolio and geographic reach, thereby reducing volatility. The “new wholeness” of the entity realized massive expense synergies and improved capital efficiency. By combining Company A’s storied brand and high-net-worth relationships with Company B’s aggressive discipline and international infrastructure, the merger drove superior earnings power and long-term dividend growth.
For Employees: The merger transformed two competitors into a dominant market leader, offering staff enhanced job security within a more resilient organization. Employees gained access to expanded career paths across a wider global footprint and more diverse business lines. Furthermore, the integration of two high-performing cultures fostered a premier professional environment, allowing the best talent from both legacy firms to lead a more innovative, resource-rich enterprise.
Ultimately, whether we are talking about Jade and Robert’s beautiful union or a multi-billion-dollar corporate merger, success is never found in the ceremony — it is found in the execution of the vows. When two entities align their core values, build upon a stable foundation, and prioritize their promises over their egos, they create a “new wholeness” that transcends the individual parts.
In marriage, this results in a legacy of love; in business, it results in thriving employees and satisfied shareholders.
So, here is to a lifetime of kept promises and flourishing growth — congratulations and a heartfelt toast to Jade and Robert!
Paul Butler is a Santa Clarita resident and a client partner with Newleaf Training and Development of Valencia (newleaftd.com). For questions or comments, email Butler at [email protected].
