Mergers and acquisitions (M&A) are critical and sensitive processes for any company. A major challenge is the rampant spread of rumors and misconceptions among employees, stakeholders and the surrounding community. To prevent inaccurate information from spreading, communication planning should begin well in advance, even if the actual communication only occurs shortly before or after the deal is closed.
Once a merger or acquisition is announced, implementing a transparent communication initiative is essential to help employees and the marketplace understand the impact. Without transparency, employees and stakeholders may lose confidence in the new company. Prompt and clear communication is crucial to easing concerns among employees, investors, vendors, customers and the media.
Develop a comprehensive communication plan. Start by assembling a communication team with representatives from both companies to create messages aligned with the strategic goals of the merger or acquisition. The communication plan should outline key messages, identify stakeholders and establish timelines. Tailor communication to address the specific needs and concerns of all the different audiences.
Quick and precise response. Act swiftly to counteract rumors and misinformation as soon as a merger or acquisition is announced. Company leaders should immediately share key messages with all stakeholders and ensure employees learn about major changes from them or appropriate company leaders rather than external sources.
Be transparent and honest. Transparency builds trust and minimizes anxiety among stakeholders. Clearly communicate the reasons behind the merger or acquisition, the expected benefits and potential challenges. Avoid making unrealistic promises. Openly discuss the benefits and any drawbacks to help employees respond positively rather than resisting change. Address employees’ concerns about job security, company culture and responsibilities. For customers and suppliers, focus on how the merger will enhance service delivery and product offerings.
Maintain consistent messaging. Consistent messaging is crucial to avoid confusion and mistrust. Establish a central point of contact for communication-related inquiries to maintain message consistency. Ensure all communications, whether internal or external, are aligned. This includes press releases, letters, internal memos, FAQs and presentations.
Engage key stakeholders early and often. Engage key stakeholders and company influencers early in the process to gain support and address concerns. Regular updates and open communication can mitigate resistance and foster a sense of inclusion and partnership.
Leverage multiple communication channels. Utilize a mix of communication channels to reach audiences effectively, including emails, video conferences, webinars, social media and in-person meetings. Regular updates should be communicated through Q&A sessions, staff meetings, newsletters and emails.
Monitor and adapt. The M&A process is dynamic, requiring flexible communication strategies to adapt to changing circumstances. Continuously monitoring communication effectiveness provides the opportunity to refine messages and tactics.
Effective communication fosters trust, minimizes resistance, and ensures a successful transition, helping companies emerge as trusted organizations to stakeholders, employees and the media.
Kelly Borth is CEO and chief strategy officer at GREENCREST
