Mergers and Acquisitions (M&A) are complex challenges that involve a lot of changes and moving parts. Although a merger may bring positive changes for company growth and innovation, it can leave important people within your organization disgruntled with the changes being made. With mergers on the rise, communicating effectively all parties involved and learning to adapt to the changes M&A brings is indispensable for the success of the companies involved. In this blog post, I’ll break down some of the main reasons why clear and efficient communication is essential for successful M&A deals.
Who Will Be Affected?
Numerous parties across both organizations stand to be affected by a merger, necessitating a comprehensive communication plan for each group. These groups may encompass:
Internal Parties
o Employees
o Stakeholders
External Parties
o Customers
o Investors
o External Stakeholders
o Vendors
Why Does Communication with These Groups Matter?
Changes are inevitable in this situation, and some of them may be significant and hard to adjust to.
Employees. Employee communication and cooperation is absolutely essential in any M&A deal. Clear, effective, and consistent communication helps with retaining key staff and avoiding value loss. Mergers often result in a lot of position overlap, which may result in dismissal. This causes employees to worry about job security, and many may make plans to leave the company if they are not told their job is secure. In addition, transparency is important in order to prevent potential strikes and a toxic work culture down the line, transparency right off the bat is extremely important. Transparency is also key in maintaining employee trust, which may be on the line if they were not informed about the merger to begin with. Make sure to address issues up front, even ones that are difficult.
Customers: Customers may express concerns, particularly when dealing with an acquiring company they are unfamiliar with. It is imperative to reassure customers that the new owner remains committed to delivering high-quality products and services.
Stakeholders: Directly communicate any impending changes to stakeholders. They have a vested interest in the company and should not learn about major changes through press releases or the news alongside the general public.
For all parties, it is extremely important to explain the reasoning behind this M&A deal. Employees and investors alike will want to know the goals of this deal, and why the merger is occurring to begin with.
Why is Consistency Important?
A consistent communication plan for both internal and external communication is one of the most important factors in a successful merger. Absolutely everyone involved in both companies should understand the image and message that the merged organizations want to convey. Make sure to include integration milestones and goals in your communication with all parties. By maintaining consistent communication, employees are able to be on the same page and discrepancies are avoided, allowing for an easier transition. Inconsistencies between what the company says and what it does would leave room for distrust and resentment to grow amongst its employees.
Furthermore, consistency plays a pivotal role in harmonizing the work cultures, values, and overall entities of the merging companies. HR departments from both organizations must collaborate to formulate new policies for the integrated entity. Culture is a vital component of any organization, and the successful amalgamation of two distinct work environments demands ongoing effort and consistency even after the merger's completion.
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