Effective communication is crucial during mergers and acquisitions (M&A) to manage the fast-paced and often rumor-filled environment. In this article, we explore the complexities of M&A communications planning, drawing insights from industry experts who have navigated significant mergers.
M&A Communications Planning
In October, a masterclass on M&A communications highlighted the challenges of planning communications during mergers. Such events are fast-breaking stories where rumors can quickly spread, leading to misinterpretations and exaggerations. Therefore, communication planning requires more thought than during stable times.
The Event Focus
In 2016, two major mergers occurred:
- Ball Corporation merged with Rexam, becoming the largest manufacturer of beverage cans worldwide.
- AB InBev merged with SAB Miller, becoming the world’s first truly global brewer.
The Rexam and Ball Corporation merger resulted in a £5bn deal, producing over half of the world’s annual 300bn cans. The SAB Miller and AB InBev merger resulted in a £105bn deal, the largest transaction in UK history. Experts like Mark Bunker, Duncan Gordon, and Justine Stevenson shared their insights on the communications challenges faced during these mergers.
Key Learnings
Understanding the process and potential timelines is crucial. Here is a guideline of the process:
- Approach and offer
- Board agreement: offer acceptance
- Regulatory pre-conditions (potential divestments)
- Convergence planning: day one / first 100 days focus
- Shareholder vote
- Change of control
- Integration and synergy realization
Managing a multitude of stakeholders is essential, including employees, company leadership, the board, and more. Being prepared for their involvement is key.
External and Internal Communication Strategy
Aligning both external and internal communications is crucial. Key considerations include:
- Reacting quickly to external factors
- Aligning communications with the merger roadmap
- Focusing on the business and prioritizing employees
- Maintaining performance and managing uncertainty through employee engagement
- Establishing internal communications infrastructure to minimize risk
- Supporting leaders to lead positively through uncertainty
- Assessing company cultures and avoiding assumptions
- Listening to employees and measuring engagement
Gloria Lombardi emphasizes the importance of not solely relying on top-down communication. Employees should be able to voice concerns and ask questions without fear, even if leaders may be resistant to communicating during uncertain times.
Key Challenges
- Maintaining productivity during a merger is challenging; effective communications can help mitigate disengagement.
- Attracting and retaining talent is difficult, especially with platforms like Glassdoor amplifying challenges.
- Being open to rumors is critical. Without proper involvement, employees may reach their own conclusions, and false information can be damaging.
If you are interested in speaking at or attending a future event, please contact us at marketing@vmagroup.com. To discuss any issues raised in this article, please contact Sara Tehrani.
