Let’s join forces! Lessons learned from M&A communications

When two companies merge, it requires a great deal of preparation, a team of trusted professionals, numerous documents, and perfect timing. When it comes to a merger involving a publicly traded company, along with the associated communications and integration work, it’s worth reading the checklist below carefully.

Develop a communication plan

Careful planning is at the heart of everything. It is particularly important to keep the project team preparing for the acquisition up to date on the various stages of the project and on all aspects of communication that need to be considered. Timing must be precise, and all parties must be fully aware of what is happening in the project, the timeline, and how internal communication links to external communications. However, planning does not end with the announcement of the acquisition; rather, well-targeted and carefully prepared work paves the way for a successful integration.

Define clear messages

When communicating about a corporate transaction, it is important to understand well in advance what information the various target groups need and what you want to convey to them. Target groups include the parties to the transaction, their employees and customers, stakeholders, current and future owners, and investors. The content of the message may vary between target groups depending on their information needs, but every message should clearly convey the benefits of the acquisition. During the preparation phase, it is advisable to finalise the presentation materials for the acquisition and ensure their content aligns with other communications. Especially in the current situation, where meetings take place primarily online, it is worth investing time in presentation training for key personnel.

Seize the moment

Information about the acquisition cannot be published until everything is finalized and legally agreed upon. Pre-announcements and embargoes are prohibited for publicly traded companies under the Securities Markets Act. However, preparing communications and managing the process must begin well in advance. This involves much more than just a technical execution, right down to last-minute changes. A corporate acquisition prepared behind closed doors will undoubtedly spark opinions and questions, for which answers must be prepared in advance. When the moment of truth arrives, the momentum surrounding the news of the acquisition must be leveraged, and you must be ready for it. Now, if ever, is the time to leverage your own networks and contacts to gain visibility.

Manage Expectations

Investors’ interest is largely focused on future earnings expectations and how the acquisition supports the parties’ strategy. An acquisition may generate excitement or concern; when expectations are properly managed, management’s job becomes easier, and they have more room to manoeuvre. Open and adequate communication builds trust and integrates the acquisition naturally into the investor story. A good investor story creates a connection with investors and guides expectations beyond the next quarter. Success in M&A communications protects both investors and your company, just as successful investor communications do in general.

Remember interaction

It is essential to remember that in an M&A transaction, it is not just the business that is transferred, but also the people. The importance of internal communication is vital for successful integration, as from the employees’ perspective, a corporate transaction also causes tension and fears: what will change, what will happen to my job, what will the new manager and organisational culture be like? Consulting employees, involving them in the change process, and maintaining open communication builds trust and understanding. In international mergers and acquisitions, employees must be able to be heard in their own language. Integration and commitment require interaction as well as long-term and consistent communication. Now is a good time to return to the initial definition phase and highlight the benefits of the acquisition to the staff. And to be present.

TIP:
Strike while the iron is hot.