Communication plays a key role in the merger and acquisition process, as it helps the deal go more smoothly and also contributes to a more successful post-merger integration. Communication should start as soon as the company starts planning to do this transaction, for this the organization involves its public relations team who are involved in the planning and management of communications throughout the transaction. Proper communication structure not only increases the chances of success, but also helps to take care of and retain valuable employees, and in this article, we will discuss how to properly manage communication during mergers.
The role of communication during a merger
The importance of communication throughout the merger process sometimes gains momentum and sometimes it fades into the background. Communication reaches its greatest importance on three occasions: during the announcement of the deal, at closing, and on the first day.
The success of the merger announcement also determines the continued effectiveness of the collaboration with partners and their employees. This is the point at which the company’s management tells the stakeholders of the deal about its vision and the merger strategy it has developed. It is important to communicate your plans as clearly and concisely as possible, as this further forms the basis for communication with employees, partners, suppliers, and regulators.
The first day of integration with another company is a great opportunity to give stakeholders the guidance they need. Be as straightforward as possible with your employees and determine what they should expect. A quality communication plan should provide your employees with accurate information and preparation for a change to keep the business running smoothly.
Recommendations for Implementing an Effective Communication Strategy
Recommendations on how to communicate a merger to customers are only a backstop to your basic actions, as sometimes communication needs repetition, clarification, or correction. The organization may not be fully prepared for any situation, but this approach will make your work much easier and more effective.
- Identifying your key stakeholders
A merger transaction has many stakeholders, each of which requires a different approach, and generally can be divided into external and internal. The external stakeholders are your investors, customers, suppliers, regulators, and potential partners. Each of them has their requirements and benefits from working with the company, and they want to make sure that the merger will not negatively affect their usual activities. The internal parties are of course the employees of both companies, who need to be informed on time and in detail about everything that is happening, especially the company should focus on employees with great potential to prevent them from quitting.
- Determination of Trigger Events
This step means the identification of events that are important for the communication and the orientation of all its forces towards these situations. The communication management must agree on which events require enhanced communication and which do not.
- Customize management and resources for the communications team
Establishing a proper m&a communications process will allow you to clarify all roles and responsibilities so that the entire operation runs smoothly. You must establish a common approach to communications during the merger and distribution of announcements and materials. The communications leader should manage and work closely with the post-merger integration leadership, and his or her team is responsible for distributing ads and other material, clearly following the communications plan.
- Collaborate on all communications
To do this you must develop key messages about the events and processes of the deal. Develop a justification for the deal that says its value and value factor. By providing a bright outlook for the future you will boost employee morale, increase employee value, and retain valuable employees.