Devensoft

M&A Communications Plan

This is a communication plan template for a merger or acquisition. It guides you through what you need to consider, how to keep messaging consistent and what bases need to be covered, minimally.

To Do

  • What will we have in place to ensure feedback?
    • People need to be heard and may have good ideas/suggestions.
    • We need to have multiple ways for employees to give us feedback.
  • Get email addresses for all employees of each company (two separate lists)
  • Communication Matrix Developed
  • Obtain a list of vendors with addresses for vendor communication

Notes/Thoughts

  • “If you feel as though you are completely overwhelming your employees with information and updates about the merger, then you are probably communicating about the right amount.”
  • No communication with employees or customers will be made until certainty of deal
  • Give employees regular updates (suggest weekly) – Status of integration, issues being resolved, accomplishments, etc.
  • Make sure rumors do not become main source of information
  • Establish and reinforce expectation for employees, partners, etc.
  • Always be consistent, honest and as open as possible in all communications People are smart and if you are not honest or at all misleading, it will be translated very negatively.
  • Link messages to strategic objectives when possible
  • Use various channels for communications (email, intranet, town halls, etc.)
  • Organize a ‘road show’ for leadership team to visit all locations / plants very soon after announcement.
  • Day 1 should be celebratory!!

Objectives

General

  • Convey to key audiences that COMPANY A and COMPANY B are merging to deliver new and extraordinary levels of value for customers
  • Highlight how the new combined company will….
  • Generate awareness and enthusiastic buy-in with employees, clients and suppliers
  • Highlight that COMPANY B represents an opportunity to diversify into new markets and offer additional services to existing markets.

Customers

  • Manage perception
  • Be proactive in communicating value that the combined company will bring.
  • Give them a way to get questions answered timely and accurately
  • Give them a clear and honest analysis of how the merger will affect them

Employees

  • Reduce fear and change of unknown
  • Clearly communicate merger goals and measures
  • Understanding top-line structure and key policies

Key Messages

To create cohesive and consistent messages, all communications created should incorporate these important themes. Note that messages will be tailored depending on audience:

Examples:

  • This move positions COMPANY B, one of the country’s leading….
  • As a result of this merger, COMPANY A:
    • Solidifies its…
    • Expands resources devoted…
    • Offers the ability to…
  • This new entity combines expertise, enhances market knowledge, expands contracting capabilities, increases scale and positions COMPANY A and COMPANY B to develop innovative forward-thinking offerings.
  • This new entity combines expertise, enhances market knowledge, expands contracting capabilities, increases scale and positions COMPANY A and COMPANY B to develop innovative forward-thinking offerings.
  • For suppliers, this transaction will …
  • COMPANY A and COMPANY B are better positioned to exceed …
  • COMPANY B will continue to serve …
  • COMPANY A and COMPANY B will ensure a smooth business relationship for our suppliers as well as …

Communication Strategy & Timing

General

  • convey positive messages
  • attempt to preemptively address their questions/concerns
  • manage fear of change and customer perceptions
  • update frequently

Day 1= 1st day post-closing of deal

FAQ’s

General

  • Why is COMPANY A & COMPANY B merging?
  • What is the timeline and process for integration of the two organizations?
  • Will COMPANY B continue to focus on the … market?
  • Will COMPANY B continue to focus on … businesses?
  • How will the merger impact COMPANY A and COMPANY B names?
  • Will contract pricing for the products in the portfolio change for either COMPANY A or COMPANY B?
  • What effect will this change have on existing supplier contracts?
  • How will this impact COMPANY A and COMPANY B suppliers?
  • What impact will this have on the Product Lines?
  • Will the new consolidated COMPANY B team relocate to another office complex?

Customer FAQ’s

  • What additional value will the merge have on my company?
  • Will there be cost decrease? Increases?
  • Who will convey my account (Company A or Company B sales rep)?
  • Which product is better (previous competitors)
  • Which product are you going to keep?
  • Where should I send my Purchase Orders?
  • What effect will this change on existing customer contracts?

Employee FAQ’s

  • When will I learn more?
  • What level of involvement will you need from me?
  • Are jobs being eliminated and or roles changing?
  • With the new activities surrounding the integration, how will this affect our remaining 201X goals and incentives?
  • What is the interim management structure and whom do I call for questions?

E-mail Communications

Company Employee E-mail

COMPANY A has finalized its agreement to …

This new entity combines the expertise, market knowledge and contracting capabilities of COMPANY A and COMPANY B to develop innovative forward-thinking offerings that will help members lower their supply costs. In addition, COMPANY B … The acquisition was effective Month, Day, 201X, and no financial terms were disclosed.

We’ve promised current COMPANY A and COMPANY B clients they will not notice any interruption in value or service as a result of this transaction, and we are committed to working with our internal teams to ensure a smooth transition for COMPANY A  employees to COMPANY B so that clients and suppliers will remain confident in our ability to serve them.

Attached is a press release about the COMPANY B transaction. If you have general questions about this announcement, please contact anyone on the leadership team. If you have supplier-related questions about this transition, direct those to …..Thank you.

COMPANY B Employee E-mail

COMPANY B has finalized its agreement to …

Email to Channel Partners

COMPANY A has finalized its agreement….

COMPANY A will leverage …

NewCo will be charged with …

Current COMPANY A and COMPANY B clients will not notice any interruption in value or service as a result of this transaction. We are committed to working with our internal teams to ensure a smooth transition for COMPANY A employees to COMPANY B so that clients and suppliers will remain confident in our ability to serve them.

Attached is a press release about the COMPANY B transaction. If you have questions about this announcement, please contact …

Name

Contact Number

 

Media Communications

Media Statement

(in case you have to respond to media inquiries prior to Press Release)

In a bold move, COMPANY A Inc. has signed a letter of intent with … to merge with

COMPANY B, one of the country’s leading … This new entity combines expertise, enhances market knowledge, expands contracting capabilities, increases scale and positions COMPANY A and COMPANY B to develop innovative forward-thinking offerings. This move also expands resources …

COMPANY A and COMPANY B will combine the work teams that have been concurrently working to serve … COMPANY A expects to finalize the transaction with COMPANY B by the middle of December

 ###

Press Release

Media Contact: Name, Contact Number

COMPANY A Merges with COMPANY B to …

Litchfield, MO (December 12, 20XX)

COMPANY A Inc., …

With this move, COMPANY B becomes a …

  • Solidifies its supply chain management leadership position …
  • Expands the resources devoted to …
  • Creates the opportunity to provide new services …

The acquisition was effective December 12, 20XX, no financial terms were disclosed.

“As …COMPANY A and COMPANY B will be well positioned to … COMPANY A and COMPANY B will bring together the employees …

###

About COMPANY A

COMPANY A Inc., based in Litchfield, MO…

About COMPANY B

COMPANY B is one of the country’s leading

Learn more on how to run a successful M&A on our M&A Management Playbook and Toolkit page.