Communication: critical for success in mergers and acquisitions
Mergers and acquisitions pursue two target dimensions. In the short term, what counts is successful signing and closing. In the medium and long term, the implementation of the transaction rationale. M&A communication serves to implement these M&A goals. First, it increases transaction security and later, it goes on to increase strategy success. Professional M&A communication adds value and is a crucial factor - perhaps even influencing whether a project thrives or not. Professional communication costs – but a project missing or failing in its communication costs more.M&A activity builds for the future. And at the very least it accelerates necessary change. To achieve this, certain factors which could contribute to a failed project must be eliminated in two central transaction phases. First, in strategy development. Second, during a target company’s integration (post-merger integration). Transaction communication makes central contributions here:
From idea to implementation
Exemplary M&A communication maps the entire M&A process: from strategy development to the identification of acquisition targets in the transaction phase and up to integration completion. By identifying and analysing all stakeholders and by developing individual, situationally adapted and overall consistent content, channels and approaches. Moreover, by targeted and effective implementation. To this end, we closely monitor historical communication and current perceptions, develop a communication strategy that is future ready and adapt it as a cornerstone of ongoing perception. Steering, control and measurement mechanisms are included as well as project management and success control.
- Market sounding. Not every sensible transaction is feasible and needs care and attention. Sometimes only a targeted market preparation makes the initial seemingly impossible, possible. Perception analyses and feasibility studies allow for a well-founded assessment in advance of how a certain M&A move would be received by most diverse stakeholder groups, what information needs would exist, and how these can be met.
- Transaction phase. Every transaction is different and has special requirements. Professional transaction communication includes a comprehensive scenario analysis, the development of concrete strategies for each possible outcome, and the implementation of the agreed communication strategy.
- Integration phase. Many transactions accomplish their strategic purpose late or miss it due to unresolved challenges during the post-merger integration phase. Structural measures (domination, and profit and loss transfer agreements, squeeze-out) and the operational integration of the target company place high demands on investor relations (equity and debt relations), on internal communications (change), and on numerous other communication disciplines such as industry relations, public affairs/governmental relations or general media and public relations. Needs-based communication programs help in coping with demanding annual general meetings and all other external and internal integration aspects.
M&A communications consulting
M&A requires special knowledge and experience as well as personnel resources that hardly any tenderer - or in the case of litigation, a target company - can provide at any time. M&A communication consulting as a service between strategy consulting and corporate finance advisory fills this gap on demand - whether by providing the entire M&A communication from one source, by supporting internal resources, or by consulting and implementing post-closing in the integration phase.
We offer our clients comprehensive M&A communication services, support during specific phases or individual consulting modules. Professional M&A communication increases transaction costs only marginally and its price is negligible in view of value added and in view of the possible costs of missing or failed communication. Our services:
- We consult in strategic communications
- We support in developing the M&A strategy
- We organise and handle legal sign-off processes
- We lead communication management
- We draw up concepts and coordination in all communication and advertising measures
- We support in addressing all relevant target groups (journalists, investors, analysts, rating agencies, shareholder representatives, employees, unions, business partners and customers)
- We prepare thoroughly in case of the premature and/or unplanned publication of confidential information (leak strategy)
- We perform continuous monitoring and evaluation of media and markets
- We carry out analysis of press, investor, and analyst perception
- And analysis of the shareholder structure
- We design and create information materials
- We conduct the conception and implementation of online activities
- Public Affairs, Government/Regulatory Relations, Industry & Union Affairs
- We provide Litigation-PR for M&A-Litigation