The task of communication in M&A processes is demanding. It is not uncommon for these projects to fail due to insufficient or poorly prepared communication. Anyone wishing to have a significant influence on the prospects of merger success needs a well thought-out and professionally designed communication strategy from the outset.
Most mergers are based on good intentions, whether economic or developmental. However, this announcement is often viewed critically by the public and with suspicion by employees. This is why communication plays a key role in anticipating and preventing major problems that may occur during the transaction.
The communication team must develop, involve and manage the planning and execution of the integration, as well as promote business continuity, reinforce communication channels to minimise damage to employees, drive the new corporate philosophy and retain talent; basic principles on which the vision and corporate strategy.
The role of communication
Communication flows throughout this process, with several critical points: the announcement of the deal, the closing of the transaction and the first day of the start-up of the new company; each time phase has its own focus.
Strategy design
In designing and implementing the strategy, the right basic concepts need to be analysed in order to achieve a merger announcement that will satisfy the audiences that will be involved.
A Plan should include specific preparation in which news about it is monitored and any leaks that may occur are responded to. It is necessary to have a precise storyline describing the whole development, which will save time and allow for co-ordination of messages between the companies involved.
The credibility of a merger is achieved through the development of relevant messages. Prospects such as greater benefits for shareholders and customers, greater economic power or more opportunities for employees should be formulated in such a way that they serve as a lure and lever for the empowerment of the resulting company.
Advertisement
The announcement is the first opportunity to tell all stakeholders and society at large about the strategy and vision behind the process. A message must be articulated that is clear and direct, a strategic rationale individualised and tailored to employees, suppliers, regulators, the media and other stakeholders. This is to ensure that the message about the merger is the right one.
For this, internal channels are essential, but at the same time it is a big challenge to communicate messages in a timely and understandable way to all hierarchical levels of the organisation. A lot of empathy is required to counteract the fears and resistance of employees, so it is very important to involve them, resolve their doubts and analyse their situation.
Pre-closure integration planning
The period before closing, and after the announcement of the merger, requires special and dedicated attention. The management team must locate messages and feedback that reinforce the positives of the strategy and correct as necessary to avoid damage to the final implementation.
There must be constant, genuine and transparent communication that does not avoid communicating between the announcement of the merger and integration of the companies. Shareholders and employees appreciate that messages are communicated in a direct and personalised way.
Implementation and completion of integration
The work of the communications team does not end when the transaction closes, as this is when the integration process begins. In this step, it is essential to inform stakeholders, including customers and suppliers, about when operational changes will take place to ensure that the resulting merged structures are understood and that a communicative and visual repositioning begins to allow the new company's activities to run as smoothly and quickly as possible.
The correct development of a communication strategy is a vital tool for informing and influencing stakeholders prior to the closing of the transaction, and it is essential to start managing communication in advance and transmitting the message correctly, both before and after the closing of the transaction. Therefore, and due to the complexity of a transaction of this type, it is necessary that the team implementing the strategy has a great deal of experience and seniority for an effective and complete execution that achieves the desired results in the initial approach.
Fernando Pérez-Montero
Consultant
This text may be reproduced provided that PROA is credited as the original source.