The majority of CEOs (53%) plan to pursue acquisitions in the next 12 months, underscoring continued deal appetite as CEOs use M&A to build technology and capability advantages, according to EY’s 2026 CEO Outlook survey of 1,200 CEOs.
But EY’s companion research warns that deal logic alone is not enough. Almost half of transaction leaders say these types of moves often fail to deliver the desired value, and only 46% of transactions achieve innovation KPIs. EY argues that transaction success depends on equal attention to the human side of deals, including leadership, psychological safety and cross-silo collaboration
EY research drawing on surveys of hundreds of senior leaders and workforce members found that equal prioritization of human elements alongside the financial rationale is the key to increasing transaction value.
The value of thriving employees
EY’s broader transformation research finds that when leaders establish six specific conditions for people to thrive, the likelihood of a successful outcome increases 2.6 times. In transactions specifically, focusing on purposeful vision, adaptive leadership, psychological safety and disciplined freedom improves an organization’s ability to carry out future transformations by 2.2 times.
The report is blunt about what happens when these conditions are ignored. Researchers found that nearly all transactions hit a moment where the program goes off course and leaders must intervene, noting that “turning points are more likely to have a negative overall impact on a transaction.”
The stakes are especially high at the talent level. On average, 75% of people in key roles quit within three years of a deal closing. The report argues that leaders must actively “re-recruit” the workforce in acquired organizations and not assume employees are enthusiastic about the combination.
HR’s window to act opens earlier than many realize. Transaction teams often prioritize business or technology fit over human or cultural fit during due diligence, leading to downstream integration issues, according to a director at a global digital payments company interviewed for the study.
The report calls for “cultural due diligence” before a deal closes, including examining leadership style, decision-making, work culture and employee engagement. As one HR executive at a multinational company warned: “The moment you get into the whole post-transaction activities, it’s too late.”
On the other hand, companies that successfully navigate turning points through a human-centered approach improve their ability to carry out future transformations by 2.2 times, building not just deal value, but an organizational capability that compounds over time.
With joint venture and strategic alliance plans also surging, (79% of CEOs plan to pursue them in 2026, up from 62% in 2025) there is additional pressure on HR to be a full partner. As one HR executive involved in a major deal put it: “They have to walk the talk. And as long as management is aligned, it gets cascaded down.”
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