Mergers and acquisitions (M&A) are back on the rise. In today’s unpredictable economic landscape, businesses are under relentless pressure to adapt and innovate. M&A deals have emerged over time as one of the most powerful strategies for lenders, mortgage originators, and other real estate businesses navigating a volatile market. Countless lenders have used thoughtful partnerships to deliver better outcomes for homeowners by prioritizing talent retention, cultural alignment, and strategic planning.
As businesses leverage M&A to drive growth at the local level, the global market is seeing similar signs of renewed energy and optimism. Global M&A as a percentage of nominal GDP remains lower than historical averages. However, global M&A activity reached $3.5 trillion in deal value in 2024, highlighting an increased appetite from $3.2 trillion in 2023. Analysts are optimistic that M&A will continue to grow in the coming years.
Still, more deals do not automatically mean more value. The success of an M&A transaction is not measured in the number of deals or price tags. It is measured in the value created after the ink dries. The real story of M&A’s impact is found locally in the families served and homes closed. Here’s how you can use M&A to drive growth and secure homeownership for your customers:
1. Talent Retention
Retaining the people who make a business successful is one of the most important drivers of M&A success. Up to 40% of critical talent is likely to leave within 18 to 24 months after an M&A deal closes. This level of turnover can quickly erode the value of a transaction and the success of the merger. To avoid this, leaders need proactive retention strategies that center the well-being and active engagement of every employee.
Talent retention means retaining critical institutional knowledge and customer relationships. Loan officers, processors, underwriters, and sales teams define results for homebuyers. Leaders who prioritize their teams during a merger are more likely to hold on to top performers. Without a plan to retain talent, even the strongest deals can weaken in value.
2. Cultural Alignment
A company’s culture shapes how people behave, communicate, and make decisions. It’s the shared values pushing everyday operations across branches and regions at every level of business. No two organizations have identical cultures, leadership styles, decision-making processes, or workplace expectations, meaning friction can emerge through a merger.
These challenges can lead 30% of M&A deals fall short of their financial goals. In contrast, leaders who focus in their integration planning on company culture are around 50% more likely to meet or exceed their targets.
Aligning cultures is essential to managing the combination of different teams during an M&A, from underwriting practices to operational processes. By fostering shared norms and building trust, companies can establish unity across thrive and build a strong foundation for functional collaboration. When leaders prioritize this, they set the stage for long-term success.
3. Strategic Planning
Delivering a successful M&A requires a willingness to take calculated risks in combination with financial planning. Companies that pursue capability-driven acquisition strategies — focusing on complementary strengths, innovation, or expertise — are more than twice as likely to outperform their peers compared to those chasing scale alone. This expansion of capabilities compounds to help lenders expand product offerings, service more borrowers, and drive new business in local real estate markets.
When approached with this strategy, M&A becomes a catalyst for meaningful and long-term growth. In an era defined by rapid disruption, standing still carries greater risk than moving boldly. Rather than focusing narrowly on cost savings, forward-looking companies win when they treat integration as an opportunity to achieve amplified wins.
The Real Measure of M&A Success
When OVM Financial merged with AnnieMac Home Mortgage in 2022, it was a pivotal moment. The partnership opened access to expanded loan products and cutting-edge technology that allowed us to serve more clients and strengthen our market presence. The personalized, local approach that defines OVM’s culture was preserved, while AnnieMac’s resources and expanded footprint enabled us to scale across every region we serve. The result has been steady growth and a more resilient foundation for the future.
At its best, M&A is not about transactions or market share. It's about unlocking potential for companies, employees, and the communities we serve. As industries continue to evolve, the businesses that approach mergers with capability, purpose, and a commitment to local roots will lead the market.
Matt Beckwith is the Executive Vice President of OVM Sales with AnnieMac Home Mortgage