Effective communication is not just an important but a critical
part of any merger or acquisition to ensure that the entire process and
repercussions are handled dexterously. Inefficiently handled communication
during mergers and acquisitions can cause resentful employees, cynical
consumers and a confusing brand image which can have a long-term adverse effect
on the company’s reputation. If your company is considering an acquisition or
merger, your in-house PR team or the PR Agency you have hired must handle this transition through PR skills and
sensitive communication.
Any
merger and acquisition can be classified into three broad phases:
·
Strategy
development
·
Negotiation
and deal closing
·
Post-merger
integration
According to a global survey it was highlighted that the greatest
risk of failure of a merger and acquisition lied in the post-merger phase and
it was as high as 53%. To evade such crisis, organizations must collaborate
with their PR team to initiate communication at an early stage to lead the way
for an unproblematic post-merger integration.
During a merger or acquisition, organizations must communicate at
three different levels:
·
Internal Communication: Communicating with employees,
investors and principal stakeholders must be initiated at the earliest option.
To manage internal communications, PR agencies must plan it strategically
through internal meetings or newsletters. During such communication it is
important to emphasize the plausible changes that the merger will bring, with
special mention of any positive changes. Under all circumstances, organizations
must be cautious that internal communication happens before it is out in the
media as this might lead to disgruntlement and mistrust among the workforce.
·
External Communication: External communication involves
the consumers and the public at large. They must be intimated about the merger
through any feasible format like emails, company newsletters or by phone. The
PR agency should also distribute a press release that clearly communicates what
the new entity of the company would look like.
·
Brand Communication: A company’s brand impression is one of the key aspects that
usually change with a merger of acquisition. While re branding the company, PR
agencies must ensure that it remains consistent across all marketing materials
such as logos and social media accounts. PR team must develop a strategy to
establish name recognition of the new entity.
During any merger’s planning phase, confidentiality plays an
important part. So the PR specialists have to plan along with the company to
make sure the amount of information that can be shared at any particular stage
of merger transaction. Also, PR team must prepare tailor-made messages for
breaking the news of merger, depending on the audience. But the messages should
be consistent in terms of facts and figures. Mergers and acquisitions tend to
break the status-quo of an organization’s existence which further creeps in
uncertainties and discomfort. Effective communication and proactive information
sharing by PR agencies can shed any qualms related to mergers and acquisitions.
