The news of a merger or acquisition is often accompanied by waves of anxiety and uncertainty with employees, unions, political decision makers but also the general public, directly or indirectly affected by the transaction. The need for coherent and thought-through communications is imminent.
Article written by Louis Wagner, Managing Partner at Yuzer Group / Credits © Yuzer
Crafting a communications plan to see a transaction through is no simple task, but a carefully constructed, thorough plan is going to help build a new, unified culture with shared goals and a common purpose. In the flurry of activity surrounding an M&A transaction, the importance of communications is sometimes overlooked or underestimated.
Too often, organizations fail to establish a solid communications plan, which contributes to fear and uncertainty and can cause irreparable harm. A strategic communications plan — one that smoothes uncertainties, mitigates risks, and gains buy-in for the change — lays the foundation for the combined businesses’ future success.
“Undercommunication is the most frequent reason for a deal failure.”
We’ve identified 5 essential considerations to craft an effective and strategic M&A communications plan:
- Start early and remain flexible. A structured plan is essential to establish core messages and deliver a consistent cadence of communications. Take action early and get a solid plan in place to prepare for key milestones. Understand, however, that stakeholders are going to have changing needs over the course of the M&A transaction, and your communications approach must evolve.
- Directly engage the C-Suite. Executives on both sides of the transactions should be directly involved in communications planning, particularly as you establish core messaging to articulate the deal rationale. The C-Suite should be coached to cascade messages at all levels of the organization. Aligning leaders ensures messages about the transaction are conveyed effectively and consistently.
- Humanize the message. Address what people really care about in a tone that is appropriate to the situation and sentiment. Avoid messaging that is overly formal, uses jargon, buzzwords, or legal speak, and be careful not to sugarcoat or make promises you can’t keep. Paint a realistic yet sensitive picture of the change taking place while communicating regularly and with high frequency.
- Be consistent and stay up to date. Your communications plan should keep key players connected so your information is current, and messages are as proactive as possible. Avoid improvising or reacting as things develop—a clear plan from the outset is going to ensure effective messaging throughout the M&A transaction. If you’re unable to provide details at a particular stage, explain the process instead.
- Collect constant feedback and remain responsive. During an M&A transaction, it’s important to gather and respond to feedback regularly and quickly. Establish two-way communications with key stakeholders, monitoring sentiment and adjusting your approach as needed and don’t dodge the tough issues.
An M&A transaction brings possibilities for innovation, diversification, growth, and efficiency. Still, it comes with significant challenges. Clear, consistent, and trustworthy communications are going to significantly improve stakeholders’ understanding, commitment, and confidence in the transaction and the integrated businesses’ future success.
