Communications is the way to bring together two organizations.
Liz Stein is managing director of One Strategy Group.
Would you negotiate a large business deal without a lawyer or agree to a significant financial restructuring without an accountant? Probably not. Your communications team is just as essential to an M&A—a lesson I learned firsthand after providing strategic counsel on twelve M&As in just two years.
More than half the CEOs in a recent EY-Parthenon study said they plan on an M&A for growth in the next 12 months. If you’re one of them, a full-scope communication plan that gets everyone attuned to the reasoning and benefits of your deal can enhance your reputation and brand. It also helps to retain your best talent and grow your customer base. Whether you are speaking with employees, existing and future customers, vendors, partners, Wall Street and Main Street, media, perhaps even legislators and regulators, you need to be smart about it.
Here is a roadmap to do just that.
Before the deal: Determine where you’re going
Craft your vision: Buy-in on an M&A begins with a clearly communicated, future-focused vision explaining why and how this transaction will transform your business. The strategy and benefits you articulate will influence how (and whether) your most important stakeholders will embrace it. If you start working on your narrative early, you can weave it into messages throughout the process, creating a consistent and coherent story that may even build new support and interest in your company.
Scrutinize the target company: Due diligence without communication diligence is incomplete. When looking under the hood at financials, talent, infrastructure, IT systems, and other critical operational factors, also look at critical external factors like customer reviews, the target brand’s reputation, and employee feedback. Audit the website and social media, look at the leadership team’s communications, and assess any possible hot-button issues. Ask: Is there anyone who may change the optics of the deal based on their connections, political interests, or newsworthiness? By preparing a 360-degree view of the company, you can forecast areas of alignment and mitigate potential challenges.
Anticipate questions: Proactively identify concerns that employees, customers, shareholders, and media may have: What does the other company have that we want? How is the combined entity stronger than we are alone? Will prices go up, or will service models change? Are we taking out the competition? What shows the CEO has the expertise to move into this new territory? How will this ultimately build customer value and shareholder value? Brainstorming specific questions allows you to prepare clear, accessible responses aligned with your vision and limit surprises.
During the deal: Be clear and careful
The more you share, the better (usually): While the specific terms of a deal may need to be kept under wraps, any perception that you are hiding important information or misleading your audiences will not serve you well. Be organized with your team about who can and should know what and when, understanding that any communication can become public. As appropriate, be realistic about the timeline and changes that will occur. Avoid overpromising or glossing over challenges. Simplifying your language and the story can also help prevent confusion or misunderstanding about the plan ahead.
Develop a rollout sequence: As the deal nears close, focus on outlining how the news of the deal should be shared. Who should know first? How are you preparing your key spokespeople for the questions they will get from others? How is your vision for the company’s future being used to underscore the deal’s value proposition? As you prepare, cascading messages and playbooks can be your biggest asset in clarifying the who, what, when, and how. Empower people on all levels to communicate about the changes effectively. Clear and consistent language will help every person become an ambassador for your broader message.
After the deal: Scale the vision
Paint the picture: After the deal is when real transformation is possible. The vision crafted at the beginning of the process is your guide now. Prepare customized versions of your vision for press releases, media interviews, employee town halls, board meetings, internal and external newsletters, ads, user experience notifications, and digital channels. Address: Why this deal? Why now? Where is this taking us? What future are we building together that only this deal can achieve? You will gain buy-in and enthusiasm across audiences by painting a consistent picture in every communication channel.
Commit to internal change management: Every M&A equals change, which can scare people. Employees wonder, What does this mean for me? Combining cultures, aligning processes, and getting everyone “singing from the same songbook” takes time and intention. Have one and two-year plans and a five-year vision that detail how strategy and operations will evolve. People will make up stories that are rarely accurate in a communications vacuum, so engage with HR closely to produce timely updates. Intentional change management processes can help you keep the organizational promises you’ve made and the strategic vision you’ve established.
Expand your story: Once the news is out, it’s never too early to think about what’s next, or what could be. A transaction like this is an opportunity to build new interest and support in your service or company. Consider how you might reintroduce aspects of your brand or positioning now that you’ve grown, expanded your audiences, and have a new story to tell. Continuing to communicate and being strategic externally can keep the momentum and attention around your company going.
So, if you are one of those chief communications officers who plan on an M&A for growth, this roadmap will get you started. But remember that each situation has its own dynamics and change management considerations. You don’t want to shortcut the process and put a solid deal at risk because you choose to shoehorn it into your organization. The communications leaders who plan are the ones that succeed, whether that means generating the most interest or weathering the toughest storms.
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