Over half of the CEOs in a recent EY-Parthenon study stated that they plan on M&A for growth in the next year. In today’s evolving media landscape, it is more important than ever to control the narrative and have a clear communications strategy. From my experience providing strategic counsel on twelve M&As in two years, I have seen how a communications plan is crucial to a successful transaction.
If done well, M&As become an opportunity to enhance your reputation and brand, grow your customer base, and recruit the best talent. Clearly communicating the transition to everyone involved – including the media, employees, customers, third-party vendors, and Wall Street – is all part of capitalizing on the deal to your advantage.
Let’s break down the key steps.
Pre-deal
This is your time to develop your vision. Create a clear path forward and explain why this transaction takes your company to the next level. How will it benefit your stakeholders? How will you use it to put your company on the map? The way you craft your message early on shapes the story.
Next, scrutinize the target company. Don’t just examine financials, IT systems, and infrastructure. Due diligence also involves the target company’s reputation, media, reviews, communications, and any sensitive issues. You need to get a holistic view of the company to identify alignment and anticipate challenges.
Finally, be prepared for questions. You need to pinpoint potential concerns from all parties involved. This means employees, the media, customers, and shareholders. Make sure your answers are clear, accessible, and align with your vision.
During the deal
Share what you can. The more information you give, the better (usually). Of course some specifics need to be kept under wraps, but you should not come across as hiding information. Make sure everyone on your team is on the same page when it comes to sharing information, timelines, and challenges. Remember to be consistent with your vision.
Have a rollout plan. Prepare your spokespeople for questions and strategically release information on the deal. You should emphasize the who, what, when, and how. Make people ambassadors who highlight how the transaction brings value to your company.
Post-deal
After the deal, circle back to your vision. This is where you execute on your transformation plan. All communications need to be customized to their audience. Use this opportunity to drum up enthusiasm for your growth and include people on your journey. You need to paint a consistent picture across all channels.
M&As inevitably mean internal change. Although the transformation won’t happen overnight, you need to be prepared for confusion and fear. Create intentional multi-year plans with regular updates to control the narrative and fulfill your vision.
Capitalize on this moment to keep your company on people’s minds. Always think ahead. Use the transaction to stir up interest and expand your audience. Tell your story, reintroduce your brand, and keep the momentum going.
Keep this roadmap in mind for your next M&A. Every transaction has its unique considerations and you need to thoroughly plan ahead to mitigate risks. Your communications leaders are pivotal in shaping the course of an M&A and you need to ensure they are prepared to hold the line.
-Liz Stein is managing director of One Strategy Group.
