what to do about potential "dissenting shareholders" before a merger

How to communicate mergers and acquisitions

30th Apr 2018 by Rachel Miller

What's the best way to communicate mergers and acquisitions? What's the worst mistake you could make? What works well?

Hot on the heels of the proposed merger of Asda and Sainsbury's supermarkets, I idea I'd collate some advice and guidance to help yous learn more than about the topic.

Communication during mergers and acquisitions is disquisitional. You lot are dealing with emotions and dubiety and need to go organised. This is a serious case of change comms. Employees need clarity on facts and figures, to take opportunities to hear data first-hand and be able to enquire questions and to experience part of the procedure.

I've got lots of advice to share with yous today including views from professional person communicators in my network and a get-go-hand account from a CEO who has merely been through a merger.

Let'due south bust some jargon first:

• A merger is when two or more companies combine to become one new company (and legal entity). There are several different types of merger, but essentially, it's an agreement that unites them as one. They are oft "equal" in the agreement.
• An conquering is when one company is purchased by another. Sometimes it's referred to equally a takeover. This is typically a larger visitor purchasing a smaller company. One entity takes ownership of the other entity'southward stock, assets or equity interests.

The two are often talked well-nigh together and you lot'll see K&A used to denote the pair.

According to the BBC today, Sainsbury'south CEO Mike Coupe has said Sainsbury'southward and Asda will remain separate brands and no stores will close. They collectively have 330,000 employees beyond ii,800 stores and £51bn acquirement.

Joined-up thinking
I had a expect at Asda'southward external intranet and it includes a link to a brand new video from the three CEOs – Roger Burnley, President & CEO, Asda, Mike Coupe from Sainsbury's and Judith McKenna, CEO, Walmart'southward international arm.

Y'all need a log-in to access it. Y'all too need a log-in to Sainsbury's site. From what I can come across, they're taking a joined-upwardly approach to internal communication, which is smart, especially having the message from the iii CEOs, plus one from Roger. I imagine his message is forth the lines of "this is what it means for the states/you" at Asda.

If anyone from Asda or Sainsbury's would like to share what they're doing internally with readers of my blog (I know you're decorated right now!), the offer remains open up.

Further reading on the All Things IC blog:

• Sainsbury'south employees share Petty Stories
• How Asda is building a various and inclusive civilization
• Asda'due south Green Room has a facelift
• How can organisations communicate change?

If you are responsible for One thousand&A comms, yous need to become organised. You often don't have a lot of time to ready. So what do y'all need to know?

Here are my golden rules when communicating Yard&Equally

In no particular order (they're all of import!)…

• Communicate what's happening as early on as you can
• Ensure employees know where to get apparent, authentic and reliable information from and how to ask questions
• Map your stakeholders to ensure yous don't miss anyone
• Gather facts and build your network of internal influencers and decision makers
• What's the timeline? Employees need to know what is happening when. What are the milestones? How volition they know when each phase has happened? Don't forget to detail the concrete changes e.g. when you lot switch logos/offices/how you lot draw the company.
• Start relationships with the comms team in the other organisation/southward. How can you create combined content and messaging? How do they communicate? (Due east.grand. could your CEO be featured on their intranet in a short video talking about what's alee?)
• Establish a source of truth for the merger or conquering – where can employees get credible, accurate, reliable information from? If it's line managers, ensure they're articulate on their part. If it'south the intranet, ensure content is refreshed regularly.
• Listen, listen, listen – you cannot over communicate change and you tin can never listen to your employees plenty. Dilate your two-style channels. (In other words, actively promote how and where your employees can ask questions).
• Utilise the questions yous gather to help shape and plan your content east.g. FAQs documents and talking points for managers. Commit to answering them. E.g. could yous have a group/hashtag on your enterprise social network to collate the queries? Make queries visible. If one employee is asking something, chances are others will be thinking information technology too.
• Provide certainty of communication even if you tin can't share certainty of contentThis is the identify to get information, we will update y'all at Ten time.
• Provide a safe infinite to enquire questions and for leaders to go comfortable with messaging, particularly if it's tough and there are job losses
• Review and measure constantly. What'south working? What'south not? What are the queries? What are the rumours? How are employees feeling about the merger or acquisition?
• What are yous learning as you go? What's helping your employees empathize what's happening?
• Share experiences and stories – what is information technology like to piece of work in your organisation? People remember stories over stats.
• What is staying the same? – As with any modify comms, make sure you outline what is remaining constant. This is of import to help guide employees through the change.
• Equip employees to have informed conversations. What can they say externally e.chiliad. to customers, to interview candidates and suppliers?

A CEO'south view

This month a major merger was completed when two organisations, each made upwards of effectually 1500 people, managing about 65,000 homes betwixt them, amalgamated into a £750m turn over system.

Kate Davies, CEO of Notting Loma Genesis has been writing on her personal weblog about the experience over the past few weeks.

She writes: "A merger is really a disturbing feel for those involved, where we confront both real dangers (will I have a job?) and mental anxieties (feelings of disorientation and loss, for example). These mental worries remain in our minds and consume us. I am not the only one who has lost sleep.

"In a merger or major change state of affairs the managers must brand themselves open to the felt experiences of their staff. Existence in touch with and understanding our own feelings is a start.

The nigh sensitive early alarm systems available to organisations are the anxieties stirred deeply inside our managers.

"We noticed the overriding desire of our managers to show a stiff upper lip or to go effectually saying "I love change", which is often untrue. Much better for the leadership to encourage the anxieties of the managers to emerge."

A merger is a radical alter which is already affecting everyone in both organisations, even if for many of them nothing is actually changing in terms of jobs or terms of employment. Merger changes things more fundamentally than nigh of us accept ever experienced before at work.

"The process will rupture the links that all of us have with our work, the company and each other. All our profound emotions that are contained within our original organisational structure are released, and can result in ourselves or our people descending into panic –Who is in accuse, will my director change, volition I have to work from somewhere else?"

You can follow Kate'southward thoughts via her personal blog. I recommend her mail on the function of senior managers in a merger situation.

Views from my network

I Tweeted this morning to ask my network for advice near G&A comms. Thank you to the professional communicators who have shared their thoughts as part of my web log's #ICVoices series. I've included their thoughts below on their acme tips, plus worst mistakes yous could make in this situation.

What's your pinnacle tip for effective merger and acquisition comms?

"Respect both companies' brands and history. Recognise information technology matters to employees, so as well as existence clear about the benefits, be honest about the challenges and the chance and the steps being taken to overcome them. Exist considerate" – Lynda Thwaite, Head of Marketing and Communications, @LyndaTLive.

"Give every bit much data every bit possible to employees equally quickly as possible. Avoid colleagues hearing impactful news from sources other than their direction. Go along the period of data going. Some decisions will exist timed then market hears start but, initiate comms to your employees at the same time. Invite questions. "I don't know, withal" is an okay respond one time yous shut the loop downwards the road. Ensure line managers have an FAQ on paw for follow-upwards questions. Colleagues will have uncertainty. Reassure them" – Paul Cawley, Communications & Engagement Officer, @paul_cawley.

"Exist absolutely honest all the fashion. Kickstart the comms every bit soon as you can. Don't expect for info/detail to communicate. A minor bulletin is better than no message. If there's sensitive information holding back item say so. Reiterate the honest, straightforward WHY in everything" – Cheryl Martin, independent marketing communications advisor, @cmmbiz.

"Programme just be agile, as nix stands still. Work collaboratively with the legal and HR teams, as everything has to be aligned" – Laura Sutherland, Founder and Director @laurafromaura.

"As well as issuing FAQ's etc, ask people what three questions they most desire answered; provide an honest open face-to-face up contact – not a corporate messenger simply someone who will accost the elephant in the room as all-time they can; promote the positives in a warm inspiring fashion – where are the synergies, why should Joe Bloggs want to be part of that?" – Andrew Martin, Senior 60 minutes Consultant @AskAndrewMartin.

"Over communicate. Create a timeline with milestones that tin can be updated and referred back to. Create an FAQ procedure that allows people to inquire questions & receive answers. Utilize the timeline to help people understand when the questions you don't have answers for will be answered" – Elisabeth Wang, Executive Director, PR and Communications, @elisabeth_wang.

What'southward the biggest mistake y'all've seen companies make when communicating mergers and acquisitions?

"Completing forgetting any emotional ties employees have to their former or new brand. If you disregard that and so you lot lose trust and respect from 24-hour interval 1" – Lynda Thwaite, Head of Marketing and Communications, @LyndaTLive.

"The focus on manufacture/marketplace/investor communications and a lack of engagement and focus regarding employee comms. They volition be the worried ones" – Paul Cawley, Communications & Date Officer, @paul_cawley.

"Saying correct from the start, "Aught's going to change." I.e. "We'll keep our brand. It's business as usual" – Cheryl Martin, independent marketing communications counselor, @cmmbiz.

"Not thinking of the risks and researching and planning for them" – Laura Sutherland, Founder and Director @laurafromaura.

"Not being articulate on the real timescale for reviewing resources in each part of the business organisation" – Andrew Martin, Senior HR Consultant @AskAndrewMartin.

"Lack of transparency – delaying tough answers doesn't aid you. Information technology only serves to erode trust" – Elisabeth Wang, Executive Manager, PR and Communications, @elisabeth_wang.

Give thanks you to everyone who contributed to this commodity. Would you similar me to write more about this topic? As e'er, you're welcome to comment below or Tweet me @AllthingsIC to share your view.

Thanks for stopping past.

Post author: Rachel Miller

Showtime published on the All Things IC blog 30 April 2018.

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Source: https://www.allthingsic.com/how-to-communicate-mergers-and-acquisitions/

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