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Communicating corporate transactions

When a corporate transaction is in train, a well-crafted communications strategy is one of the keys to a smooth completion. Employees, shareholders, investors, advisers, customers and suppliers need to be reassured.

A specialist approach is required to ensure that the news is conveyed in the right way and at the right time.

With mandatory legal, regulatory and financial considerations in play, should communications really be a top priority? The reality is, the way a deal is presented to your various audiences will make or break how it’s received, internally and externally.

While many deal professionals recognise the important role of communications, amid a complex transaction and ongoing business operations, it might not be front of mind.

Engaging an agency with expertise in corporate transactions protects confidentiality, enables internal teams to continue with their day-to-day activity, and ensures that a deal is seen in the most favourable and positive light.

Internal communications: engaging employees

Naturally, employees’ biggest concerns on hearing about a corporate transaction is focussed on job security, leadership changes and the future direction of the company.

It’s important to have your internal communications prepared to coincide with the deal being made public.

To keep employees informed and engaged, you will need to provide regular updates, giving transparent and consistent information.

Typical employee concerns will revolve around continuity of employment, career progression, and how the companies will be integrated; what locations will change, and what does the deal mean for the future of the business.

All of these points can be address through sensitive, considered and positive communications.

Building support amongst employees is critical to avoid staff making pre-emptive decisions based on misinformation. Being transparent at the earliest opportunity helps prevent uncertainty within your team.

 

External communications: maintaining confidence

When customers and suppliers get news of a corporate transaction, they may also have concerns. Communication with these stakeholders should provide updates on any changes resulting from the merger or acquisition but emphasise that there will be continued demand for their products and services.

Failing to provide this reassurance through proactive, well-planned communications could see customers and suppliers review their options.

 

Media relations: controlling the narrative

Corporate transactions spark interest from the media and your news will reach all your audiences. In anticipation of this, you should prepare a press release emphasising the benefits the deal will bring. A specialist M&A communications agency will be able to ensure these materials conform with legal and regulatory requirements.

Prominent spokespeople should receive media training, if necessary, and be briefed on engaging with journalists. It is important that all channels – publications, website, LinkedIn, etc – convey consistent messaging.

 

Why appoint a specialist M&A communications agency?

Corporate transactions can be complex and prolonged. Communicating about them effectively, requires a specialist skill set. Working alongside your internal teams, a communications agency has the expertise to handle sensitive and confidential information, provide support in crisis management and engage stakeholders with consistent messaging across all channels.

An experienced agency will be able to project manage the whole process, liaising with parties and suggesting appropriate ways in which to communicate your news.

This might include:

In corporate transactions, professional communication is essential. A well-executed strategy will maintain confidence in the companies involved, protect reputation and sustain important relationships with employees, customers and suppliers.