The minute a company announces a merger or acquisition, you can feel the tension ratchet up in the office. Employees nervously browse job sites, managers get territorial with pet projects, and emails pour in from customers and partners concerned about their interests. Every stakeholder needs empathy and reassurance from the leadership team during the M&A process. They want to know that someone is looking out for them.
You’ve seen the financial reports, and you know the ROI looks good, so making sure your stakeholders are on board for your next phase of growth is vital. People are the heart of each company, and their voices are the key to success after an acquisition. The best way to support them is with a concerted effort at care and conversation.
Organizations that prioritize the importance of communication in mergers and acquisitions can control the narrative and are better equipped to manage human factors and navigate transitions effectively.
Why is Communication Important in Mergers & Acquisitions?
The uncertainty of a merger impacts every key stakeholder, from employees to vendors, investors, and regulators. A study by Mercer in 2020 reports that employee retention is the number one perceived risk in M & A. Cultural fit is second.
Launching a transition with a solid, consistent communication plan is the key to reducing a whole host of risks, such as:
- Employee uncertainty
- Productivity reduction
- Loss of talent
- Culture clashes
- Customer and partner concerns
- Misalignment of goals
- Resistance to change
A communication strategy lets you take control of the message and set your employees on the path to success.
Benefits of Strategic Communication
Coming up with a strategy takes time and may feel like a burden, but crafting a strategic communication plan can help eliminate the risk associated with transitions and accelerate the acquisition to traction.
Reassurance of Stakeholders and Employee Retention
Regular updates and transparent communication play a critical role in the long-term success of building employee trust and reassuring external stakeholders. A clear communication plan for rolling out announcements from day 1 of public knowledge creates a sense of “psychological safety” that implies to every stakeholder, “We’ve got this. Someone has your back.”
Alignment and Vision-casting
Controlling the message means that leadership can cast their vision for the future to all stakeholders. McKinsey reports it takes several attempts before people absorb the intended message, so the sooner you can start and the more consistent your narrative, the better.
One CEO admitted he invested a great deal of upfront time in crafting a “change story.” This projected his vision for the future and cast the merging companies as the hero in “building a stronger global footprint.”
He honed the message carefully with his comms team and made it the core of every public communication. His execs tailored the story for each department, changing the narrative so that in the minds of employees, they were part of something grander. This consistent message provided clarity and the “why” behind the coming changes. By the end of the transition, employee engagement skyrocketed, and a new corporate culture was born.
Successful Cultural Integration
A strategic communication plan is the first step toward creating a new culture that effectively blends employees and objectives from all organizations into something distinctive. The more the comms team consistently explains this cultural shift, the more it becomes familiar and begins to feel like a “new normal.” As the two company cultures become one, ongoing communication will pave the way for a smooth transition.
Huebner Marketing’s expertise in crafting tailored strategies helps smooth transitions and create positive stakeholder experiences. We specialize in clear, timely messaging to remove concerns and align with your business goals. Work with us to transform your M&A communication into a strategic asset and turn potential risks into opportunities for growth.