The plan brought together all merger communications, across all stakeholders, and included the key milestones and target events, as well as regular updates to different groups. Communication during mergers and acquisitions is critical. What’s worse, executives often misuse the term in attempting to assure people that neither company will dominate the other. This was a complex process, requiring the sales team to tell the story with marketing’s support. A post merger integration checklist (or m&a integration checklist) is a step by step agenda to keep teams on track in preparation for a merger or acquisition. Critical communication meetings with employees occur: 1. In fact, at the very time company communication needs to be better than ever, it’s often at its worst. 3. All valid outstanding invoices will be paid timely. As soon as an M&A is announced, people have questions and concerns. Don’t get distracted by what you may believe serves our internal organization at the expense of what our customers need. Well, to be honest-- a lot.The list below goes over each communication, the phase of the transaction, and who the intended audience is. No company is perfect. They’ll probably appreciate a little special attention at this point, so it certainly can’t hurt to touch base and find out if they’re experiencing any problems that you might not otherwise be aware of. A complex merger or acquisition can take several months - even years - to be completed successfully, so your organization’s M&A communication plan will be different from any other company. Initial Announcement: The purpose of this is to announce the deal, and it will be sent out to investors and internally to employees. With email, Twitter, Facebook, and such, it’s like every employee runs a broadcasting station. The document makes the job of sharing accurate, timely, consistent information with employees much easier. Take care of their "me" issues in a hurry. Adequate communication is essential for a successful merger and acquisition: A communication plan should be developed to show employees they are respected and valued throughout the process. They will continue to receive the same distinctive quality and service they have come to expect from us. Key message point to be delivered to employees in groups and reinforced in M&A Integration Planning Software (Includes 20 steps, 107 tasks, and 45 tools), Objective: Creating a blueprint for the integration, M&A Communication Planning Software (Includes 15 steps, 55 tasks, and 39 tools), Objective: Developing a consistent process for communicating. Managers Use the below matrix to plan your messages. Most IT processes and procedures will remain unchanged on Day 1. M&A Valuation: What’s HR’s Role During This Stage? After Close–Benefits Briefing. Give your merger or acquisition the best chance for success by thoroughly managing the process from due diligence well into the first year post-deal. Protect your credibility by "telling it like it is," no matter how painful "it" may be. I’m betting the boss mismanages expectations by making at least one of these five common but wrong-headed remarks. A survey is one way to promote a dialogue with customers and give them an opportunity to tell you how well the combined organization is meeting their needs …. If your organization is currently going through a merger or acquisition, you may be wondering how to communicate this to your staff. (Sell the rationale for the merger, using compelling facts and personal conviction.) When should I tell my entire workforce? Upon announcement, let employees clearly know: If known, information can also be communicated regarding: …. Customer Communication Guidelines (excerpt from page 3). For example, in my second acquisition, we created a new umbrella brand, making sub-brands of the original company I had founded along with the two I acquired. 1. The Core Message Word template is also provided. Your executive team should be giving regular updates about the success of the deal, and goals that are coming down the pipeline in regards to the M&A. But, the five points listed above should be enough to get you started with a strong backbone for a really solid communications plan. You will want to notify them of such a big company change, and let them know how, if at all, this will impact your business relationship with them. Now, let’s jump into each communication more thoroughly and explore templates…. The list below goes over each communication, the phase of the transaction, and who the intended audience is. But until advised further please continue to do things the same as you do today. It also detailed all deliverables, listing the audiences, the owners, the deadlines, the required preparation times, the content-approval processes, and the interdependencies. I’d bet a lot of money you’ve never heard of a guy named Robert Valentine Braddock. Includes communication tips, talking points, letter and answers to FAQs. There are several reasons for this, including lack of knowledge about valuation, lack of understanding about value drivers, and cultural misfits. It is common knowledge that employee retention is one of the most difficult issues faced in a mergers and acquisition. Integrating a workforce during a merger or acquisition can be an incredibly arduous process. Prior to any change we will inform you of the changes ... Five-page playbook covers media plan, talking points, letter to state and local officials, and posts for social and media websites. They have not had as much time to digest the news. When directly compared or weighted against each other, losses loom larger than gains. About 100 days after Close, it’s a good idea to take the temperature of the two companies’ customers. Every day brings new developments. For your press release, you’ll want to include information very similar to that which was used in the initial announcement. For more information about Acquirer including its acquisition of Acquired Co., please visit Acquirer.com. A: Employees currently enrolled in the target Company benefits plans will continue their coverage under the current provisions of their benefits package. It’s up to the seller to keep the lines of communication open. This trust creates buy-in for the event which in turn will help push it over the finish line to be successful. The communication role needs to begin during the preliminary stages to set the scene. looks across at the rest of the chain gang, pauses, and in a strained voice says, "What we have here is failure to communicate". In this case, it could double it if your newly formed organization directs all of its needs to the vendor, or completely eliminate it if you choose to go with a different vendor. But you CAN dramatically increase your odds of success. This is a serious case of change comms. You are dealing with emotions and uncertainty and need to get organised. They can handle it. So you should use this window of opportunity to make needed changes. What touch-points should I have in my communication plan? If you withhold information from people, they may eventually figure it out and withhold information from you. While it is important to let the public know about your merger or acquisition, you will also want to be strategic in the specific information you release. In the meantime, review the FAQs below to learn more about the IT transition and what it means for you. M&A communication planning is difficult because a merger is always a fast-breaking story. Work becomes more frustrating and stressful for everyone. However, there are many ways to tell a story that doesn’t include proprietary information such as exact revenue figures or projections. Don’t let ambiguity paralyze you or make you complacent. This helps explain why selling the merger to your workforce can be a pretty tough job. The process also requires continuous refinement based upon the situation. We also provide playbooks, agendas, and guidelines for conducting announcement, day one, and benefit meetings. Communication during a merger should not be improvised. The speed, reach, and sheer volume of information circulating from the people in your workforce eclipses what was possible just a few years ago. Frequent, consistent, transparent, honest and efficient communication before, during and after a merger or acquisition is incredibly important if a company plans to complete a large scale transaction and accommodate the resulting organizational changes effectively. Developing a Merger and Acquisition Communications Plan. If you plan to change pricing, products and services, complexity would be greater still. You’ll find good advice from Chip and Dan Heath in their new book, Switch: How to Change Things When Change is Hard. All current contracts remain in force and will be honored. Fear not. Every day brings new developments. Proven, easy-to-use online reference tool for merger planning and communications. No changes in existing organization, all current management positions are unchanged. The number and extent of job changes and reductions will depend on the unique needs of each business and department. But because their communication troubles developed insidiously over the past twenty years, top management doesn’t grasp the scale of the problem. M&A Communication Plan: Everything You Need (And Free Templates), The Hart-Scott-Rodino Act and Premerger Notifications: An Overview. An integration unfolds like a fast-moving, changing story. Adhere to the information set forth in these documents and do not elaborate or expand upon the information provided. To put this conversationally, people normally weigh losses about twice as heavily as gains. We refer to the first ten questions on the list as “me issues”  because they are focused on the most common personal concerns of employees. This is just human nature…the survival instinct at work. Goals, impacts, and new objectives of this transaction, Information on the specific business being merged or acquired (What do they do? hbspt.cta._relativeUrls=true;hbspt.cta.load(3044396, '864e2ad8-52d7-4970-ae42-bb36a9be967d', {}); Even though your communication plan will be different from plans that other organizations create, it will still be as equally important to the success of the M&A transaction. An example of acquisition would be Google buying Android for 50 million dollars in 2005. hbspt.cta._relativeUrls=true;hbspt.cta.load(3044396, '6043b688-ca1b-4b7a-8034-0229fb315503', {}); Most mergers and acquisitions fail over the long run when compared to the objectives they were suppose to achieve. It’s an awkward time, with more confusion, communication problems and job stress. You’ll be talking into a headwind of skepticism, and a Pollyanna pitch is just going to stoke the fires of employee distrust. Our commitment is to make decisions and come to conclusions on a comprehensive integration plan by [month, year]. Company and Target will keep existing practices in place for the short-term. Here’s the 4-step sequence that works best: 1. Employee loyalty and trust are at stake. According to Forbes, more than half of mergers and acquisitions fail post transaction. Lack of Communication. Rumors start to fly as soon as people pick up the scent that a merger is in the works. ), Any quotes from involved parties, such as the CEO, or other relevant people involved in the merger and acquisition deal, Updated logistical information, such as a new website, location, or logo, Contact information for a press representative at your organization, Any new services that you will be able to provide them (for clients), Logistical information (new location, website, etc), Contact person in HR for more information. As we make business decisions over time, we’ll work closely with our employees, customers and suppliers to ensure smooth transitions. It’s important to remember that mergers and acquisitions are not democratic processes …. Includes answers to FAQs, sample letters to suppliers, and important talking points and messages. Without adequate information, people will cook up all sorts of wild rumors that create unnecessary stress. Twitter Post: Provide standard text that suppliers, customers, and brand sites can retweet or copy All you need to develop and execute a comprehensive post merger and acquisition integration plan. …. Help people understand the volatility of the situation. Include location address and specific times, Website: make all adjustments and key information for Target employees available online. In this case, the real damage shows up operationally, Companies are getting beat up—clobbered—by messaging failures that confuse priorities …. Most M&As involve several people, and you need a strategy for who will own each aspect of the transition. A: No, you will continue with conducting business as usual and answering the phone as Target Company. Keeping marketing programs humming while merging can be taxing without expert help. Once your job is transitioned to New York you will receive information on COBRA that will allow you to continue their benefits for up to 18 months. Fight the urge to sugarcoat the story—give people the good, the bad, and the ugly. This produces a sense of uncertainty that fuzzes up priorities, interferes with decision making, and breeds inertia. Just because a comment from an executive is well-intentioned doesn’t mean that it is effective. We will act with purpose, focus and transparency to integrate our two companies working closely with our stakeholders every step of the way. Besides, over the weeks and months to come, something is bound to change. A clear and thoughtful communication plan can go a long way in easing concerns, distrust and resistance as employees are challenged to go from the known to the unknown. Why wouldn’t you? This is high drama. Internal vs external communication is very different! The announcement should include the following information: It is important to let your employees know earlier rather than later about a merger or acquisition. Will offices or other facilities be closed? ... such as sign-off procedures and a promise to coordinate internal communication. Acquired Co. and Acquirer’s IT teams will be working closely together over the next several months to bring our IT systems together in the way that best suits the needs of the business. They can also access all the presentations, playbooks, books, articles, checklists, software, assessments, webinars, research, tools, and templates on MergerIntegration.com. Our focus on delivering the best products and services to our customers and maintaining strong supplier partnerships ... What the company and its people will gain or lose, How the company will proceed with integration and change, General facts about the partners–size, products, history, key executives, and locations, How business should be conducted during the transition period, Developing key strategies for the new business, Determining overall Integration initiatives, Identifying and documenting Lessons Learned, Chartering the Communications Announcement Team, Detailing the strategy and plan for ongoing communications, Creating a plan for ongoing communication, Documenting the Communication Strategy and deliverables. They can find the answer to their questions on their own which will save you time. If I have assigned another BU or Function to one of my initiatives what should I do? You can assure our customers that we will not miss a beat in delivering on our commitments. Whether that be to welcome the employees of the newly acquired company or to welcome all of the employees to the brand new “merged” company. Take advantage of the situation and seize the opportunity to make improvements. Opportunities must be very bright and shiny, say twice as good as the risk of losing, for people to be upbeat and excited. The communication plan supporting the acquisition was tailored to the identified audience and was segmented by customers and partners types: customers, partners, system integrators, OEMs, distributors, JVs, supply chain partners. Register to access this resource and over seventy free M&A integration articles, presentations, playbooks and tools on MergerIntegration.com. We have created a list of items that you should include in your merger or acquisition communication plan, along with explanations for each item, and templates to help you get started. Too often the communication starts too late and doesn’t deal sufficiently with the post-merger integration issues. Mergers and acquisitions go through three broad phases. No need to risk losing the synergies when the templates get you most of the way. In a lot of these cases, it is common for your executive team to not decide on all of these at one single time. Time invested up front in communications is time wisely spent. Expect workloads to increase after an acquisition, and prepare for some downtime to protect your team from burnout and fatigue. This will reinforce all of the previous information that you sent out as well as notify them that the deal has finally closed. Acquired Co. has recently become part of the Acquirer Group. And our eMerger software offers step-by-step instruction on how to develop an integration communication plan. The truth is a moving target, and often dead on arrival. Announcement Day Bobby is the only living songwriter who’s had at least one song reach the top of Billboard’s country chart in every decade for five decades running. And it’s totally predictable. A huge reason for this is a lack of communication and alignment between all involved parties. Case Studies – Using Employee Feedback Surveys Post-Acquisition And even if you are not involved with planning directly, you will be asked to help with the transition by focusing extra attention on serving our clients ... A useful, simple one-page checklist to plan your messages. Answers to 28 Employee Frequently Asked Questions. The role of communication is central to the success of a merger. Until these “me issues” are resolved, people are …. "Executives are in New Beginnings.They want to communicate the vision, the inspiration about how great the merger will be. The CEO must actively promote the benefits and necessity of information sharing. Acquisitions create an insatiable demand for communication and connection. These resources should help you fill in any gaps, and provide a skeleton that your organization can then use to create a customized mergers and acquisition communication plan. As people have to break their familiar routines, performance weakens. So when a deal is announced, people instantly scan for how it might be threatening to their careers. We have compiled lists from our M&A integration consulting projects of the most common questions asked by: Common Employee Questions Are there any mandatory time parameters I should use for organizational structuring initiatives? Function/ department specific message as determined by responsible Executive Committee member. Take the initiative to reach out and introduce yourself. Information Technology: Day 1 Answers to Frequently Asked Questions. Get to know your new work colleagues. 5 Things You Should Never Say in Announcing the Deal, Top 10 Reasons Why More Employee Communication Is Necessary When Merging Companies, Make A Sales Pitch For The Deal And Point Out The Warning Label, The 15 Most Common M&A Integration Communications Mistakes, Sample Letter: Employee Communication During M&A, Noise: The Communication Crisis in Corporate America, Ignore Social Media at Your Own Peril During Merger Integration, Day 1 M&A Playbook: Customer Communications - $1.6 Billion Acquisition, Customer Communications M&A Integration Playbook - $2 Billion Acquisition, Employee Communications M&A Integration Playbook - $3 Billion Acquisition, Day 1 Employee Communications M&A Playbook - $1.6 Billion Acquisition. Most people’s jobs won’t change, but others may end up with new or different responsibilities, or may report to someone new. When merger difficulties develop, 75% of them have their roots in communication problems. Rumors start to fly as soon as people pick up the scent that a merger is in the works. Communication is a vital component to the success of any merger and acquisition. HR Updates: This should happen after the closing of the deal and should include information for employees in regards to changes to their benefits, compensation, etc. Yet, most key managers receive little education on what to say, and just as importantly, what not to say. Before the Acquisition/ Merger A successful M&A deal requires exceptional leadership and careful planning. He has written some thirteen #1 hits, and was inducted as the youngest living member of the Songwriters Hall of Fame in 1981. Build a communication plan. The initial announcement will be responsible for letting your investors and employees know that you are currently working on closing a merger or acquisition. Maybe then they’d remember the song when talking to their employees about being acquired and merged. It’s official! Therefore, these sessions should be planned carefully. Save yourself weeks of painstaking research and organizational assessment by using our Acquisition Project Plan Template. hbspt.cta._relativeUrls=true;hbspt.cta.load(3044396, '6cb35dcb-497b-4607-a5a5-1a308ab0ae9e', {}); This letter will be sent out to all of your impacted stakeholders that aren’t your investors, employees, or the press. This has serious implications for an M&A scenario. What To Do During a Merger or Acquisition So, as stated above, not all communications plans will be the same. Them that the integration plan by [ month, year ] line to be “ solved ” only... An opinion, and often dead on arrival there will be some job changes reductions... Decisions over time, we know there will be responsible for letting your investors and employees know is... Developed insidiously over the weeks and months to come, something is bound to change pricing, and... 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