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Mergers And Acquisitions
Communication Strategy
Stakeholder Engagement
M&A Communication
Corporate Strategy
ARTICLE #28
Table of contents
Effective mergers and acquisitions communication strategy
Mergers And Acquisitions
Communication Strategy
Stakeholder Engagement
M&A Communication
Corporate Strategy
Written by:
6 min read
Updated on: April 22, 2024
Toni Hukkanen
Head of Design
Creative Direction, Brand Direction
Toni Hukkanen
Head of Design
Creative Direction, Brand Direction
Toni Hukkanen
Head of Design
Creative Direction, Brand Direction
Structured merger and acquisition communication is critical for employee well-being, and failure to do so can quickly result in rumours. To prevent employee strikes and a toxic work culture, it is necessary to be transparent as early as possible.
Internal acceptance can help your company move forward while maintaining its brand reputation. Although the combined company culture may temporarily suffer during this transition, an effective communication strategy can greatly improve the well-being and sense of purpose of your workforce.
If your organisation is currently going through a merger or acquisition, you might be wondering how, when, and what to communicate to your employees. A complex M&A usually takes several months or even years to complete successfully, which means that as an entrepreneur, business owner, or C-suite executive, you need to come up with a plan to communicate this major change to your employees.
Below, we have elaborated on how to convey the organisation's future vision and strategy to internal and external key stakeholders, including regulators, customers, vendors, and employees.
Structured merger and acquisition communication is critical for employee well-being, and failure to do so can quickly result in rumours. To prevent employee strikes and a toxic work culture, it is necessary to be transparent as early as possible.
Internal acceptance can help your company move forward while maintaining its brand reputation. Although the combined company culture may temporarily suffer during this transition, an effective communication strategy can greatly improve the well-being and sense of purpose of your workforce.
If your organisation is currently going through a merger or acquisition, you might be wondering how, when, and what to communicate to your employees. A complex M&A usually takes several months or even years to complete successfully, which means that as an entrepreneur, business owner, or C-suite executive, you need to come up with a plan to communicate this major change to your employees.
Below, we have elaborated on how to convey the organisation's future vision and strategy to internal and external key stakeholders, including regulators, customers, vendors, and employees.
Structured merger and acquisition communication is critical for employee well-being, and failure to do so can quickly result in rumours. To prevent employee strikes and a toxic work culture, it is necessary to be transparent as early as possible.
Internal acceptance can help your company move forward while maintaining its brand reputation. Although the combined company culture may temporarily suffer during this transition, an effective communication strategy can greatly improve the well-being and sense of purpose of your workforce.
If your organisation is currently going through a merger or acquisition, you might be wondering how, when, and what to communicate to your employees. A complex M&A usually takes several months or even years to complete successfully, which means that as an entrepreneur, business owner, or C-suite executive, you need to come up with a plan to communicate this major change to your employees.
Below, we have elaborated on how to convey the organisation's future vision and strategy to internal and external key stakeholders, including regulators, customers, vendors, and employees.
Identify key stakeholders
Identify key stakeholders
Identify key stakeholders
Multiple stakeholders are involved in mergers and acquisitions, and each kind of stakeholder requires a customised approach and targeted messaging. They can be classified into two groups: external and internal.
External Stakeholders
External stakeholders include the following.
Investors (who must be convinced of the merits of a deal)
Analysts (who expect management to make the financial and strategic case for it)
Consumers (who must be retained and reassured about the continuity of service)
Vendors (who anxiously wait for information on what mergers and acquisitions would mean for them)
Government officials and regulatory bodies (who are concerned about job losses and anti-competitive behaviour)
The general public (who will quickly form opinions about the merger, whether it's good or bad)
Internal Stakeholders
These are the employees of the two merging companies, but there are differences in the needs of distinct groups within them. A well-thought-out plan tailors the message for employees, including general staff, those with high potential, and those at risk of leaving.
Communications with unions or worker councils need careful preparation and often legal counsel. Retirees are most concerned about potential changes to benefits. Employees are the most important stakeholders, and they must be excited about the new vision of the company while being ready to buy into it.
But before reaching there, they might be wrestling with many questions like, do I have a job now? Whom will I be reporting to? Will I have a job in the future?
So, a communication plan must address critical employees and high potential. In a merger and acquisition, targeted communications and one-on-one discussions with high performers about their future career paths show they are valued.
Multiple stakeholders are involved in mergers and acquisitions, and each kind of stakeholder requires a customised approach and targeted messaging. They can be classified into two groups: external and internal.
External Stakeholders
External stakeholders include the following.
Investors (who must be convinced of the merits of a deal)
Analysts (who expect management to make the financial and strategic case for it)
Consumers (who must be retained and reassured about the continuity of service)
Vendors (who anxiously wait for information on what mergers and acquisitions would mean for them)
Government officials and regulatory bodies (who are concerned about job losses and anti-competitive behaviour)
The general public (who will quickly form opinions about the merger, whether it's good or bad)
Internal Stakeholders
These are the employees of the two merging companies, but there are differences in the needs of distinct groups within them. A well-thought-out plan tailors the message for employees, including general staff, those with high potential, and those at risk of leaving.
Communications with unions or worker councils need careful preparation and often legal counsel. Retirees are most concerned about potential changes to benefits. Employees are the most important stakeholders, and they must be excited about the new vision of the company while being ready to buy into it.
But before reaching there, they might be wrestling with many questions like, do I have a job now? Whom will I be reporting to? Will I have a job in the future?
So, a communication plan must address critical employees and high potential. In a merger and acquisition, targeted communications and one-on-one discussions with high performers about their future career paths show they are valued.
Multiple stakeholders are involved in mergers and acquisitions, and each kind of stakeholder requires a customised approach and targeted messaging. They can be classified into two groups: external and internal.
External Stakeholders
External stakeholders include the following.
Investors (who must be convinced of the merits of a deal)
Analysts (who expect management to make the financial and strategic case for it)
Consumers (who must be retained and reassured about the continuity of service)
Vendors (who anxiously wait for information on what mergers and acquisitions would mean for them)
Government officials and regulatory bodies (who are concerned about job losses and anti-competitive behaviour)
The general public (who will quickly form opinions about the merger, whether it's good or bad)
Internal Stakeholders
These are the employees of the two merging companies, but there are differences in the needs of distinct groups within them. A well-thought-out plan tailors the message for employees, including general staff, those with high potential, and those at risk of leaving.
Communications with unions or worker councils need careful preparation and often legal counsel. Retirees are most concerned about potential changes to benefits. Employees are the most important stakeholders, and they must be excited about the new vision of the company while being ready to buy into it.
But before reaching there, they might be wrestling with many questions like, do I have a job now? Whom will I be reporting to? Will I have a job in the future?
So, a communication plan must address critical employees and high potential. In a merger and acquisition, targeted communications and one-on-one discussions with high performers about their future career paths show they are valued.
Create a timeline
The communications workstream starts early in the merger and acquisition process and maintains a steady pace. An effective plan has the potential to outline key milestones and trigger events such as leadership announcements. The aim is to spend most of the time and energy on material events. This also ensures regular updates continue to flow.
It is the responsibility of all key decision-makers to be aligned on what the communications focus is and what isn't. This alignment ensures leaders buy into the merger vision and commit to executing it well. It also clarifies responsibilities and roles to specify who will do what and when.
The communications workstream starts early in the merger and acquisition process and maintains a steady pace. An effective plan has the potential to outline key milestones and trigger events such as leadership announcements. The aim is to spend most of the time and energy on material events. This also ensures regular updates continue to flow.
It is the responsibility of all key decision-makers to be aligned on what the communications focus is and what isn't. This alignment ensures leaders buy into the merger vision and commit to executing it well. It also clarifies responsibilities and roles to specify who will do what and when.
The communications workstream starts early in the merger and acquisition process and maintains a steady pace. An effective plan has the potential to outline key milestones and trigger events such as leadership announcements. The aim is to spend most of the time and energy on material events. This also ensures regular updates continue to flow.
It is the responsibility of all key decision-makers to be aligned on what the communications focus is and what isn't. This alignment ensures leaders buy into the merger vision and commit to executing it well. It also clarifies responsibilities and roles to specify who will do what and when.
Set up governance for the communications team
The integration leadership and communications team should establish a clear governance process and clarify roles. There are typically four roles involved.
The integration steering committee will review and approve the overall approach to merger communications. They will also message core stakeholders and serve as the final decision-makers on issues that cannot be resolved elsewhere.
The integration leader reviews the overall communications activity plan and also approves the dissemination of materials.
The communication leader helps manage the communications workstream and works closely with the integration leader to develop, syndicate, and execute the plan. Finding the right resources and guiding content development are also responsibilities of a communications leader.
The communications team develops and disseminates the content suggested by the communications activity plan and works closely with external partners and functional leaders.
For effective and timely execution, well-defined governance is needed, which involves approving and disseminating communications.
The integration leadership and communications team should establish a clear governance process and clarify roles. There are typically four roles involved.
The integration steering committee will review and approve the overall approach to merger communications. They will also message core stakeholders and serve as the final decision-makers on issues that cannot be resolved elsewhere.
The integration leader reviews the overall communications activity plan and also approves the dissemination of materials.
The communication leader helps manage the communications workstream and works closely with the integration leader to develop, syndicate, and execute the plan. Finding the right resources and guiding content development are also responsibilities of a communications leader.
The communications team develops and disseminates the content suggested by the communications activity plan and works closely with external partners and functional leaders.
For effective and timely execution, well-defined governance is needed, which involves approving and disseminating communications.
The integration leadership and communications team should establish a clear governance process and clarify roles. There are typically four roles involved.
The integration steering committee will review and approve the overall approach to merger communications. They will also message core stakeholders and serve as the final decision-makers on issues that cannot be resolved elsewhere.
The integration leader reviews the overall communications activity plan and also approves the dissemination of materials.
The communication leader helps manage the communications workstream and works closely with the integration leader to develop, syndicate, and execute the plan. Finding the right resources and guiding content development are also responsibilities of a communications leader.
The communications team develops and disseminates the content suggested by the communications activity plan and works closely with external partners and functional leaders.
For effective and timely execution, well-defined governance is needed, which involves approving and disseminating communications.
Develop core message
There is a need to anchor all the communication during the integration period in a set of core messages that arise from the deal’s rationale, associated change story, and employee value proposition (EVP).
The rationale articulates the core reasoning for a deal and its value drivers. The change story is a clear and compelling picture of what must be done to unlock the deal's value and why. It shows that a merger is not business as usual. The EVP explains why the future is bright and what the deal means for employees.
The core messages are further personalised for each group of stakeholders. All communications must reinforce and build on these core messages.
One of the most important moves for a CEO and the C-suite is to develop a set of core messages grounded in the deal’s rationale. The communications team can start the process by conducting a deeply structured interview with the CEO. They can also organise a workshop with the executive team in order to create a single aligned story for the organisation to develop the core messages.
It doesn't matter how companies generate the first draft; it is essential to test and refine the core message across the organisation to ensure it appeals to various stakeholders.
There is a need to anchor all the communication during the integration period in a set of core messages that arise from the deal’s rationale, associated change story, and employee value proposition (EVP).
The rationale articulates the core reasoning for a deal and its value drivers. The change story is a clear and compelling picture of what must be done to unlock the deal's value and why. It shows that a merger is not business as usual. The EVP explains why the future is bright and what the deal means for employees.
The core messages are further personalised for each group of stakeholders. All communications must reinforce and build on these core messages.
One of the most important moves for a CEO and the C-suite is to develop a set of core messages grounded in the deal’s rationale. The communications team can start the process by conducting a deeply structured interview with the CEO. They can also organise a workshop with the executive team in order to create a single aligned story for the organisation to develop the core messages.
It doesn't matter how companies generate the first draft; it is essential to test and refine the core message across the organisation to ensure it appeals to various stakeholders.
There is a need to anchor all the communication during the integration period in a set of core messages that arise from the deal’s rationale, associated change story, and employee value proposition (EVP).
The rationale articulates the core reasoning for a deal and its value drivers. The change story is a clear and compelling picture of what must be done to unlock the deal's value and why. It shows that a merger is not business as usual. The EVP explains why the future is bright and what the deal means for employees.
The core messages are further personalised for each group of stakeholders. All communications must reinforce and build on these core messages.
One of the most important moves for a CEO and the C-suite is to develop a set of core messages grounded in the deal’s rationale. The communications team can start the process by conducting a deeply structured interview with the CEO. They can also organise a workshop with the executive team in order to create a single aligned story for the organisation to develop the core messages.
It doesn't matter how companies generate the first draft; it is essential to test and refine the core message across the organisation to ensure it appeals to various stakeholders.
Create a plan for each milestone
During some mergers and acquisitions, the communications team, highly regarded by C-level executives in both organisations, collaborated with the IMO to create a detailed communication plan covering the merger’s who, when, what, why, how, and where. The team relied on the same approach and project management tools that other merger workstreams did.
The plan combined all merger communications across all stakeholders, including the key milestones and target events, and regular updates to different groups. The details of all deliverables, owners, listing the audiences, deadlines, content approval processes, interdependencies, and required preparation times were also present.
Therefore, it is essential for communications teams to use different channels to reach their intended audiences and ensure that messages sink in and are reinforced. Decide which channels to use for each deliverable to build the communications activity plan. Social media plays a major role in keeping employees, the general public and customers engaged.
During some mergers and acquisitions, the communications team, highly regarded by C-level executives in both organisations, collaborated with the IMO to create a detailed communication plan covering the merger’s who, when, what, why, how, and where. The team relied on the same approach and project management tools that other merger workstreams did.
The plan combined all merger communications across all stakeholders, including the key milestones and target events, and regular updates to different groups. The details of all deliverables, owners, listing the audiences, deadlines, content approval processes, interdependencies, and required preparation times were also present.
Therefore, it is essential for communications teams to use different channels to reach their intended audiences and ensure that messages sink in and are reinforced. Decide which channels to use for each deliverable to build the communications activity plan. Social media plays a major role in keeping employees, the general public and customers engaged.
During some mergers and acquisitions, the communications team, highly regarded by C-level executives in both organisations, collaborated with the IMO to create a detailed communication plan covering the merger’s who, when, what, why, how, and where. The team relied on the same approach and project management tools that other merger workstreams did.
The plan combined all merger communications across all stakeholders, including the key milestones and target events, and regular updates to different groups. The details of all deliverables, owners, listing the audiences, deadlines, content approval processes, interdependencies, and required preparation times were also present.
Therefore, it is essential for communications teams to use different channels to reach their intended audiences and ensure that messages sink in and are reinforced. Decide which channels to use for each deliverable to build the communications activity plan. Social media plays a major role in keeping employees, the general public and customers engaged.
Establish two-way communications
There is an immense need to create two-way feedback channels to ensure messages are received as intended and the gaps are flagged and appropriately addressed.
Sometimes, communication efforts fail because feedback is not gathered or acted upon. When employees feel they are only being talked at or when their feedback is ignored, it leads to disengagement. A good feedback collection process relies on a number of tools, such as integration barometers, pulse surveys, focus groups, town halls, and website or email feedback.
After gathering all this, the communications team and IMO analyse the feedback and take corrective action. Well-respected employees who play the role of influencers within organisations can assist the feedback process. You can help by recruiting these employees upfront and using their support to gather feedback.
There is an immense need to create two-way feedback channels to ensure messages are received as intended and the gaps are flagged and appropriately addressed.
Sometimes, communication efforts fail because feedback is not gathered or acted upon. When employees feel they are only being talked at or when their feedback is ignored, it leads to disengagement. A good feedback collection process relies on a number of tools, such as integration barometers, pulse surveys, focus groups, town halls, and website or email feedback.
After gathering all this, the communications team and IMO analyse the feedback and take corrective action. Well-respected employees who play the role of influencers within organisations can assist the feedback process. You can help by recruiting these employees upfront and using their support to gather feedback.
There is an immense need to create two-way feedback channels to ensure messages are received as intended and the gaps are flagged and appropriately addressed.
Sometimes, communication efforts fail because feedback is not gathered or acted upon. When employees feel they are only being talked at or when their feedback is ignored, it leads to disengagement. A good feedback collection process relies on a number of tools, such as integration barometers, pulse surveys, focus groups, town halls, and website or email feedback.
After gathering all this, the communications team and IMO analyse the feedback and take corrective action. Well-respected employees who play the role of influencers within organisations can assist the feedback process. You can help by recruiting these employees upfront and using their support to gather feedback.
What communication mistakes to avoid during mergers?
If an organisation fails to communicate effectively during a merger or acquisition, it puts its employees’ loyalty and trust at stake. It also compromises employee retention, company culture, and long-term success. For these reasons, it is essential to have an effective merger and acquisition communication strategy in place.
Frequent communication minimises uncertainty and ensures a trusting relationship with employees. It also eases concerns about job security and helps retain valuable employees. With intentional and consistent messaging, you can cultivate a unified company culture. Open communication simplifies post-deal success and long-term profitability.
If an organisation fails to communicate effectively during a merger or acquisition, it puts its employees’ loyalty and trust at stake. It also compromises employee retention, company culture, and long-term success. For these reasons, it is essential to have an effective merger and acquisition communication strategy in place.
Frequent communication minimises uncertainty and ensures a trusting relationship with employees. It also eases concerns about job security and helps retain valuable employees. With intentional and consistent messaging, you can cultivate a unified company culture. Open communication simplifies post-deal success and long-term profitability.
If an organisation fails to communicate effectively during a merger or acquisition, it puts its employees’ loyalty and trust at stake. It also compromises employee retention, company culture, and long-term success. For these reasons, it is essential to have an effective merger and acquisition communication strategy in place.
Frequent communication minimises uncertainty and ensures a trusting relationship with employees. It also eases concerns about job security and helps retain valuable employees. With intentional and consistent messaging, you can cultivate a unified company culture. Open communication simplifies post-deal success and long-term profitability.
How to put a structured merger communications plan in place?
If you want to develop a structured merger and acquisition communications strategy, you should focus on business objectives. All the energy should be directed toward protecting and building business value.
The messages must address the evolving needs of stakeholders. If you cannot communicate decisions yet, try to explain the process. The executives should be directly engaged through clearly defined roles.
Make sure all communications are of high quality and repeatedly reinforce in multiple channels. Try to communicate five times more than you think you need to.
Another thing you need to do is align leaders, customer-facing staff, and middle managers to allow them to communicate effectively. Do not outsource this work to the communications function.
In the end, keep the deal team, IMO and workstreams connected for updated information and proactive communication.
If you want to develop a structured merger and acquisition communications strategy, you should focus on business objectives. All the energy should be directed toward protecting and building business value.
The messages must address the evolving needs of stakeholders. If you cannot communicate decisions yet, try to explain the process. The executives should be directly engaged through clearly defined roles.
Make sure all communications are of high quality and repeatedly reinforce in multiple channels. Try to communicate five times more than you think you need to.
Another thing you need to do is align leaders, customer-facing staff, and middle managers to allow them to communicate effectively. Do not outsource this work to the communications function.
In the end, keep the deal team, IMO and workstreams connected for updated information and proactive communication.
If you want to develop a structured merger and acquisition communications strategy, you should focus on business objectives. All the energy should be directed toward protecting and building business value.
The messages must address the evolving needs of stakeholders. If you cannot communicate decisions yet, try to explain the process. The executives should be directly engaged through clearly defined roles.
Make sure all communications are of high quality and repeatedly reinforce in multiple channels. Try to communicate five times more than you think you need to.
Another thing you need to do is align leaders, customer-facing staff, and middle managers to allow them to communicate effectively. Do not outsource this work to the communications function.
In the end, keep the deal team, IMO and workstreams connected for updated information and proactive communication.
Frequently Asked Questions
How do I make sure my merger is successful?
It is possible to determine the success of mergers and acquisitions by calculating:
Internal rate of return (IRR)
Return on investment (ROI)
Weighted average cost of capital (WACC)
What are the 6 determinants of merger success?
The six determinants of merger success are:
Due diligence
Deal structure
Strategic vision and fit
Pre-merger planning
External factors
Post-merger integration
Why do up to 90% of mergers and acquisitions fail?
Most mergers and acquisitions fail because of cultural differences, value destruction, and poor communication and integration. Without resolving these issues, mergers and acquisitions won't be successful, and incompatibility between two companies also leads to failure.
Final Thoughts
Companies often make merger and acquisition communications plans a low priority because of other pressing needs. Some of them outsource the work entirely to the HR and communications function. This is a missed opportunity for executive leadership and the integration team. Therefore, a structured focus on communications, backed by senior leadership, results in several benefits, such as motivated employees, engaged partners and vendors, and other stakeholders to support the success of the newly formed company.
Frequently Asked Questions
How do I make sure my merger is successful?
It is possible to determine the success of mergers and acquisitions by calculating:
Internal rate of return (IRR)
Return on investment (ROI)
Weighted average cost of capital (WACC)
What are the 6 determinants of merger success?
The six determinants of merger success are:
Due diligence
Deal structure
Strategic vision and fit
Pre-merger planning
External factors
Post-merger integration
Why do up to 90% of mergers and acquisitions fail?
Most mergers and acquisitions fail because of cultural differences, value destruction, and poor communication and integration. Without resolving these issues, mergers and acquisitions won't be successful, and incompatibility between two companies also leads to failure.
Final Thoughts
Companies often make merger and acquisition communications plans a low priority because of other pressing needs. Some of them outsource the work entirely to the HR and communications function. This is a missed opportunity for executive leadership and the integration team. Therefore, a structured focus on communications, backed by senior leadership, results in several benefits, such as motivated employees, engaged partners and vendors, and other stakeholders to support the success of the newly formed company.
Frequently Asked Questions
How do I make sure my merger is successful?
It is possible to determine the success of mergers and acquisitions by calculating:
Internal rate of return (IRR)
Return on investment (ROI)
Weighted average cost of capital (WACC)
What are the 6 determinants of merger success?
The six determinants of merger success are:
Due diligence
Deal structure
Strategic vision and fit
Pre-merger planning
External factors
Post-merger integration
Why do up to 90% of mergers and acquisitions fail?
Most mergers and acquisitions fail because of cultural differences, value destruction, and poor communication and integration. Without resolving these issues, mergers and acquisitions won't be successful, and incompatibility between two companies also leads to failure.
Final Thoughts
Companies often make merger and acquisition communications plans a low priority because of other pressing needs. Some of them outsource the work entirely to the HR and communications function. This is a missed opportunity for executive leadership and the integration team. Therefore, a structured focus on communications, backed by senior leadership, results in several benefits, such as motivated employees, engaged partners and vendors, and other stakeholders to support the success of the newly formed company.
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