Communication is Key in M&A
The merging of two companies can, in any instance, create a significant amount of upheaval, worry or concern for the parties involved. Successfully integrating two organisations without any teething issues is by no means a simple process and, according to professional services giant PWC, the flurry of activity surrounding a deal means that good communication is often overlooked.
However, as is the case with any prosperous relationship, communication is key, and implementing a strong and effective communication strategy is crucial in ensuring the successful integration of businesses.
Here, we explore the simple, yet critical, steps an organisation must take when developing their M&A communications plan.
When executing an M&A deal, it is essential that everyone within the organisation fully understands why their company is being acquired or is acquiring another. Ultimately, it all comes down to storytelling and defining at a very early stage the company’s core messaging. Firstly, it is important to outline why the companies are merging. This should consider how the merger will affect the entirety of the business, including customers, employees and partners. Furthermore, establishing this key messaging early on will enable a business to decide how it will present the deal to the media.
Despite a business’ best efforts, a potential M&A deal rarely remains confidential. It’s almost a given that the news will leak and, if or when it does, it is crucial that the organisation’s employees, partners and customers do not grow concerned. With this in mind, it is important that businesses develop a leak strategy for assuring employees, partners and customers that they needn’t be concerned and it is very much ‘business as usual’. Pre-prepared material, such as press releases or client emails, can help alleviate this apprehension. There will be endless questions coming your way when news of the deal eventually breaks, and preparing a list of FAQ (frequently answered questions) answers will ensure that no one within the organisation is caught off-guard.
As rumours begin to circulate, employees will begin to grow anxious over what an M&A deal will mean for both the future of the business and their jobs. On these occasions, it will be the employee’s manager who they turn to for reassurance, therefore managers and HR personnel must be kept well-informed throughout the M&A process.
As a business goes through the M&A process information can often be misinterpreted, with subsequent rumours extremely common. It is because of this that companies should not stop communicating following the deal announcement. Continued communication will only help to reinforce the company’s key messaging and reassure all parties involved.
With experience in a number of key sectors and representation throughout the Americas, Europe, Africa and Asia, Benchmark International can connect you with the right opportunity. To find out more, visit http://www.benchmarkcorporate.com.