There are several reasons for this, including lack of knowledge about valuation, lack of understanding about value drivers, and cultural misfits. Everybody has an opinion, and all the rules of gossip prevail. An integration unfolds like a fast-moving, changing story. Corporate America has a similar problem—it’s losing the battle for people’s attention. Managing internal and external communications is critical during a merger or acquisition. “We don’t anticipate making any changes.”. By anticipating their concerns in advance, you’ll be better prepared to address them. It’s important to remember that mergers and acquisitions are not democratic processes …. 3.2. 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. "Executives are in New Beginnings.They want to communicate the vision, the inspiration about how great the merger will be. Take advantage of the situation and seize the opportunity to make improvements. The earlier you communicate, the better. 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. While a merger happens when two companies combine together to form one company, acquisitions happen when one company is taken over by another company. 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. M&A communication planning is difficult because a merger is always a fast-breaking story. Just as critical as planning for culture fit is the need to communicate throughout the merger process. Includes communication tips, talking points, letter and answers to FAQs. Six pages of communication guidance for supplier-facing teams that includes key messages, talking points, sample supplier letter, and supplier FAQs with answers. After Close–Benefits Briefing. Do not call out comparisons to other industry mergers or acquisitions. Upon announcement, let employees clearly know: If known, information can also be communicated regarding: …. Get to know your new work colleagues. Just the same, it looks bad. While early stage M&A programs focus on due diligence activities and evaluations of corporate financial statements, solvency, revenue performance and even corporate reputation and cultural “fit”, one of the key components of a successful merger or acquisition is the communication, marketing and integration plan. communication plan Building your communication plan ... • Extensive experience in all aspects of merger and post-acquisition integration, and has advised clients across a wide variety of industry sectors covering small, mid and large cap ... 5 RULES OF MERGER COMMUNICATION 1. Be tolerant of cultural differences. Take care of their "me" issues in a hurry. A: No, you will continue with conducting business as usual and answering the phone as Target Company. He’s a big name in the world of country music, though, a living legend on Music Row in Nashville. In this tense environment, it is easy for messages to be misinterpreted, twisted, or exaggerated. 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. They end up causing productivity and morale declines and—eventually—profitability problems. No changes in existing organization, all current management positions are unchanged. Note to Execs Announcing a Merger: Take Some Advice from a Hit Man! How a company communicates during a transaction has a … Right now, there are going to be more questions than answers. Here are ten reasons why: An integration initially produces more problems than solutions. Having a welcome letter is a great way to start an open dialogue of honesty and transparency with new employees, as well as to create an inviting culture that will hopefully assist with retention issues. Employee loyalty and trust are at stake. Company and Target will keep existing practices in place for the short-term. Expect workloads to increase after an acquisition, and prepare for some downtime to protect your team from burnout and fatigue. Good communication is essential to successful mergers and acquisitions. I’d bet a lot of money you’ve never heard of a guy named Robert Valentine Braddock. They’re irked by an unrealistic positive slant. But you CAN dramatically increase your odds of success. This is a completely normal turn of events. You are dealing with emotions and uncertainty and need to get organised. Most M&As involve several people, and you need a strategy for who will own each aspect of the transition. For your internal employees, the information should be very similar to that of the initial announcement, but with more information about the actual closing. Plan early and continuously throughout the merger or acquisition, and set expectations for roles and responsibilities early on in the process. Critical communication meetings with employees occur: 1. 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