Mergers and acquisitions (M&A) can be stressful for each company involved. Balance sheets must look positive, but leadership also deals with human livelihoods. Meshing two organizations means juggling people, assets and customers.
Staff want to know their jobs are safe. Customers wonder if the level of service will change for the better or worse. Investors need to know the company will thrive and that their money is secure. The way a brand communicates during this pivotal moment matters.
How to Craft a Trustworthy Communication Strategy
A stellar blueprint for sharing the news is essential. Mergers and acquisitions are traditionally disruptive to organizations, so a news release alone won’t work. Research shows that the most successful deals are approached programmatically, with a modest median total shareholder return of 2.3% annually. Any messaging must reassure people and build confidence. A step-by-step plan can reduce friction during the transition.
1. Start With a Clear Communication Strategy
Companies must ensure the organization’s messaging is consistent in a global market with a resurgence of mergers and acquisitions, but there are challenges to overcome. It’s crucial to figure out who delivers the message, set up a regular schedule and use the same channels each time so people know where to look for milestone updates. Consistent voices and a clear plan reduce confusion.
2. Define Voice and Narrative
When two organizations come together, they may bring different terminologies and styles. Creating a common language that utilizes both brands’ standard business terms and cultural values ensures employees from each company feel comfortable. Managers must explain the merger, shared vision and benefits, such as growth and a more significant market presence.
3. Address Employee Concerns Directly
Staff members worry about their jobs being secure, what changes might make their tasks more difficult and whether the new company’s culture fits their career goals. Over 70% of an employee’s engagement depends on supervisor connection, so ensuring everyone understands key points allows them to answer questions and reassure workers, preventing churn.
4. Use Several Channels to Reinforce a Point
Outsiders may wonder if the M&A strengthens the brand or destabilizes it. Leaders must prepare messages for external communication that outline improvements resulting from the merger. Reassure investors with specific data showing the most likely growth scenario.
Align channels with internal releases to avoid leaks. The firm should share the message on several social media platforms and via email to reach all its customers, employees and investors. Use the overarching brand logo in each post. Studies show it takes people between five and seven times to remember and recognize a brand logo. Around 75% of people recognize companies this way, so firming up their view of the company is crucial during a transitional time.
Sending video messages from company leaders also helps lend authority and humanize the communication. Seeing a familiar or friendly face can keep accounts from fleeing to the competition.
5. Prioritize Empathy and Humanity
Organizations must embrace empathy to foster goodwill and show others they are trustworthy. People may wonder how honest vague press releases are. If leaders acknowledge uncertainty with empathy, people are more likely to listen. Start by outlining the step-by-step M&A process and which milestones warrant an update. Transparency and admitting not having all the answers humanizes leadership and calms fears during stressful changes.
6. Monitor and Adjust Messaging
After messaging employees, customers or stakeholders, leadership should gauge responses. Is the reaction positive or negative? If questions arise, consider another release to address them. Management must put everyone’s minds at ease while remaining honest. Allow people time to start their job searches if layoffs are likely. Businesses can use digital tools and analytics to refine their communication.
A Stronger Brand After the M&A
The way a brand presents the change can create something more influential than before. People value transparency more than spreadsheets. Following a messaging blueprint offers reassurance and shows that leaders care. At the beginning of the merger, company leadership must become excellent communicators. Done right, communication drives success.
