Successful M&A Communications – It’s all in the detail
Mergers and acquisitions are far more than the negotiations, due diligence and the ultimate inking of the sale agreement. What can often be over-looked is the separation or integration of the sold or acquired asset and the effective communication of this plan to stakeholders. Often the key focus is on getting the deal signed and making the announcement highlighting what a fabulous deal it was for all parties and the key strategic benefits it delivers.
While the Board and management and deal advisors may all be clear what the strategic rationale for the transaction is along the way, if this is not communicated to the wider business, particularly those responsible for the technical, cultural and operational aspects then all those strategic benefits may be erased and much of the deal value can be eroded.
Clearly there is a challenge where a publicly listed company is involved as it cannot always be openly and widely communicated throughout the process. Even in private companies, there is a line that must be drawn as to when it is appropriate to bring people on the journey. Tell people too early and the deal falls over any disruption caused by the information will have been in vain. Companies need to know when the right time is to bring more people in and get their expert and technical expertise and advice, which can be invaluable, particularly when it comes down to understanding the impact across the business.
It’s all in the details
Throughout my relatively short time with amaysim, there was very rarely a time when an acquisition or asset disposal was not in the works. In my nearly two years, the business made two acquisitions of smaller mobile assets; sold its energy business to AGL; sold its mobile business to Optus; and then entered into an off-market takeover offer with WAM Capital before delisting from the ASX.
One of my first observations was the level of detail taken into account and the amount of forward planning taken into consideration about the execution of the separation or integration of the asset in question. And this touches all parts of the business from technology, finance, marketing, customer service and compliance.
As someone who came from an agency, this level of detail was not something I had been exposed during a transaction and also as someone who would likely not be considered a ‘details person’ it was to me remarkable and refreshing.
Get your comms team across the detail early
All this planning makes the comms work stream far smoother when the time arises to bring others in the business on the journey. Firstly, it is very clear what benefits the transaction brings to all stakeholders including but not limited to investors, customers, employees, partners and how these should be communicated.
Secondly, any questions that are expected to be asked by a stakeholder will in most cases already have an answer. Of course, sometimes those answers need finessing and refining depending on the audience but when you already have that detail and information that stage becomes far simpler.
Being readily armed with the information not only builds confidence in management’s ability to execute, but also reassures stakeholders that the operational challenges have been considered and there is a path forward.
If you are an advisor or executive team working on a transaction and you aren’t sure when to bring in comms support it's likely because that is not your area of expertise. That person (or people) is the comms team, and you should be asking them. Brief them early (even if it means just one or two key people) and bring them on the journey with you. It will save you time down the track and bringing them on the journey early, will ensure that you get the best results.