As companies continue to focus on growing and expanding their brand, they must always be looking for new ways to evolve and access the next growth opportunity. From entering new markets through to launching new products and services, every option requires a well-researched business plan and a thoughtful communications strategy which addresses both internal and external stakeholders.
One of the most significant corporate events for a company, whether listed or private, is a planned merger or acquisition. By embarking upon such a significant transaction, a company can rapidly accelerate their growth via the acquisition of new technologies, skill sets, markets and geographic reach.
However such a major event can also make or break a business.
At the very outset, critical to any planned M&A, is the in-depth operational, financial and legal due diligence requirements, which when supported by extensive cost and financial forecasting, will confirm the viability of the transaction. If the transaction proceeds, an effective communications strategy should be put in place, which will provide a clear and positive narrative of how the deal should be perceived by employees, investors, suppliers, the media as well as a raft of other stakeholders.
Central to a successful communications strategy is consistent, clear and transparent communication, in order to avoid any market misinformation, which could detract from the value of the transaction.
Our six key recommendations:
* Control deal information
Keep the circle of people who know about a planned transaction as small as possible in the initial stages to avoid leaks to the media and competitors. Unofficial communication often leads to misinformation, creating serious implications for the businesses involved in terms of both trust as well as impact upon employees, customers and wider stakeholders.
To avoid this, an effective communications strategy will include a timeline for corporate announcements, and all approved content and messaging, in addition to target audiences and channels, approved spokespeople as well as contingency management plans for unexpected events, such as media leaks or a crisis.
* Be consistent
In the planning stage, a set of core messages should be developed which represent every part of the deal from management and structure through to strategy, employees and suppliers etc. Each of these approved messaging requirements should be supported by in-depth Q&A’s and briefing sheets, which will support the company’s spokespeople (who should be trained) in their presentations as well as their responses to questions from different audiences.
* Be transparent
During a significant M&A event, for listed as well as private businesses, transparency can be difficult due to the regulatory environment or concerns about revealing too much sensitive information to the competition. However, there are many ways to talk about a deal without divulging price or commercially sensitive information.
Transaction background information can be explained through a variety of tactics such as the use of thought leadership and white papers through to the use of town halls, corporate videos, microsites and infographics, in addition to traditional press statements.
* Content development
As mentioned, M&As can be complicated and often supported with complex financial and operating details; however, companies must be mindful of their target audience and adapt the content and messaging accordingly. If the narrative is not easily understood, the message will be lost.
Content therefore must be developed to address each audience in a format they can easily follow. This content should also be optimised for digital and social media use, which can be highly targeted to very specific audiences and can easily monitored for impact and effectiveness.
* The end is only the beginning
Once the transaction is complete the on-going story begins. A lot of work will be needed to communicate on an ongoing basis with key stakeholders with updates on business strategy, performance, key milestones achieved etc. This post-event activity will reinforce the rationale for doing the transaction.
There is no doubt that a merger or acquisition can make or break a company. Those that are successful do their due diligence from a financial and operational perspective but also think of how to communicate this successfully, ultimately securing long-term stakeholder trust and support.
Shane Dolan is managing director of FTI Consulting.
