Professional communication plays a crucial role in successfully implementing an M&A transaction. How do you inform your employees, customers, suppliers, and capital market about a planned M&A deal?
M&A communications consulting in all phases of a transaction
Mergers and acquisitions (M&A) communications begin when the planning of a company takeover, company acquisition or company sale is imminent. It starts with strategy development and the identification of acquisition targets throughout the entire transaction phase up to the signing and closing and the subsequent integration phase (in the case of a merger or company takeover).
These communications activities aim to inform all relevant target groups – employees, suppliers, business partners, the public, the media and, most importantly, the capital market.
There is an obligation to inform the capital market about a planned transaction if it is inside information. This means that capital market-oriented companies should disclose the deal to the public if there is a certain probability that the transaction will be completed. This happens at the latest at the time of signing.
Additional M&A Communications goals
- Creating trust
- reducing fears and concerns (both among employees and the public),
- promoting employee commitment and motivation and
- most importantly, protecting the company’s reputation.
M&A communications increase transaction security in the short term and a company’s strategic success in the medium and long term.
M&A communications primarily serve to realise the two most crucial M&A objectives:
- achieving a successful M&A transaction
- realising the purpose of the transaction
M&A Communication must focus on all stakeholder groups
This includes employees in particular. The workforce must be informed with empathy, transparently and at the right time. Authentic and honest communication is essential for a successful M&A process.
Public Relations in the M&A transaction phases
Communication with the public is of great importance during the transaction phases. It is not only about the company’s valuation, the previous owner and management’s future roles, and the purchase price.The public is also interested in how a company will be continued and the consequences for the employees or locations.
Confidential information relating to the M&A transaction must be protected to the highest degree.
After the closing, starts communications again..
Further communication challenges begin after the sale, acquisition or merger of companies.
These include brand development, vision and mission. The CEO has this task first and foremost, as they are the face and voice of the company. They act as a reputation manager.
Listed companies also need an effective and well planned communications strategy after the M&A transaction has been completed, as share prices tend to react negatively to communication errors in M&A processes.
The best of both worlds: Many years of investment banking expertise combined with international public relations and communications experience.
Thanks to our many years of experience in banking (corporate finance/mergers & acquisitions), we offer the best of both worlds:
Extensive expertise in M&A processes and many years of communications consulting experience in complex processes – at the management level.
Whether a share deal or an asset deal, we advise and support you in all phases of an M&A transaction: before, during, and after the transaction, when different corporate cultures must be brought together.
In addition to strategic communications consulting, we offer:
- support in developing the M&A story
- communications management in all phases of the M&A transaction
- organisation and management of the coordination process
- conception and coordination of all communications measures, including internal and external communications
- support in addressing all relevant target groups (journalists, investors, analysts, rating agencies, shareholder representatives, employees, trade unions, business partners and customers)
- editorial writing and publication of media releases
- establishing and providing a network of journalists relevant to the company
- in the event of information leakage: provision of communications in the event of unplanned and premature publication of information about the M&A transaction
- continuous monitoring and evaluation of the markets and media
- media response analysis
- media training for top management
Dealing with uncertainties: During an M&A process, employees, customers, investors, and other stakeholders usually experience a great deal of uncertainty and anxiety. Professional and effective communication helps manage this uncertainty and reduce fears.
Maintaining morale: Merger and acquisition activity can disrupt employees and day-to-day work processes; uncertainty about the future can lead to a decline in morale and productivity.
- Retention of key talent: During an M&A transaction, employees feel uncertain. Communication can help retain top talent.
Build and strengthen trust: Trust is essential for both parties to work effectively towards a common goal. M&A transactions involve a certain amount of risk. Trust-based communication is critical to successfully managing the risks associated with the transaction.
Consistent communication: This with a focus on the strategic direction, impact on the existing business model, growth and revenue prospects, synergies, and technological aspects.
Avoiding legal issues: M&A transactions can be complex. If not communicated correctly, this can lead to legal problems.