The cost of change, and what leaders need to prioritize during M&A and hypergrowth

M&A, acquisitions, and rapid scaling are usually discussed in terms of valuation, integration plans, and operational risk. But for founders and executives who’ve lived through them, the real cost of change tends to show up somewhere else entirely: inside the team.

That tension is at the center of The Cost of Change: M&A, Acquisition and Scaling Startups, a session at NEXT NYC Summit moderated by Emily Haruko, Co-Founder of Saroca. Drawing on years of advising leadership teams through moments of disruption, Haruko says there’s one element founders almost always underestimate.

“Psychological safety. Every time.”

During M&A processes or periods of hyper-growth, Haruko often sees leaders start to gatekeep information—sometimes because they have to, due to NDAs, and sometimes out of fear or discomfort with transparency. But the downstream effect is consistent. “Regardless, the impact is the same: the team fills in the blanks with worst-case scenarios. Job security and anxiety kick in, and performance drops.”

As uncertainty lingers, scarcity thinking spreads quickly, Haruko says. People become more defensive, collaboration dips, and innovation slows—right when the business needs teams operating at their best. Haruko argues that human-centric leadership isn't a ‘nice to have’ during these moments. “EQ, transparency and human-first leadership isn’t soft during change,” adding that these qualities can even boost performance.

What separates teams that hold together from those that fracture, Haruko says, often has little to do with perks or polished strategy decks. Camaraderie, in particular, is something she believes startup culture underutilizes. “It doesn’t mean everyone’s best friends, it means mutual respect, connection, and a sense of we’re in this together is at the forefront of all interactions.”

Transparency is another area where founders tend to swing too far in either direction, Haruko says, adding that it’s “nuanced.” Some say almost little, which often fuels rumor and fear. Others overshare, unintentionally creating emotional drag. As Haruko puts it, “In the absence of information, we make s**t up.” The balance lies in discernment: sharing what people need to perform, providing enough context for change to make sense, and clearly naming what can’t yet be discussed.

The session aims to move beyond theory and into lived experience. Haruko says she’s most excited to surface the panelists “lived stories of change,” and unpack the leadership behaviors that actually helped teams integrate disruption and move faster—alongside the ones that created friction and breakdown.

Because as she sees it, “change doesn’t build culture, it exposes it.”

The panel brings together several leaders who’ve navigated these moments firsthand, including Paris Smith (Defy the Odds), Adam Rosenberg (Blackstone), and Joe Asher (Boomer’s Sportsbook)—each with their own scars, lessons, and hard-earned perspective on what it really takes to lead through change.

Catch this session and more at NEXT NYC Summit March 9–11. Tickets are expected to sell out soon, so secure yours now before prices increase (and use code BETTINGSTARTUPS10 at checkout to get 10% off your full event pass)