M&A Best Practices (Part 2): Ensure a Successful Integration After an Acquisition
This is part two of our series on M&A Best Practices. If you haven’t yet read part one, you will want to read it first: M&A Best Practices for before and during an acquisition. And, don’t forget to check out our handy M&A checklist at the end of this article!
In our previous article, we discussed M&A best practices for before and during an acquisition. The entire process can be very dynamic and exciting. For this reason, it’s important to prepare and plan well when things are relatively calm, before you find yourself in the thick of things.
Okay, so you’ve acquired an organization and the communications around the acquisition have gone according to plan. Awesome! Now what? If you’re hoping integration will simply run itself, it’s time to recalibrate your expectations. Just as planning is important before and during an acquisition, establishing timelines and procedures and opening lines for effective communications ensures that integration runs smoothly.
Now, let’s talk about M&A best practices for the weeks and months after an acquisition.
The Work Really Begins: Integrating Legacy Organizations
Effective communications surrounding an acquisition assures your workforce that business will proceed as usual and your clients that delivery is not impacted by this change. Managers are an essential link in the communications chain, both internally and externally.
When announcing an acquisition, the information will spread quickly. And, as we know, false information spreads more quickly than the truth. So you will want to have a strategy to manage your message. Carefully choreograph your communications so that internal audiences hear from you first. Ensure that your communications cascade is timely, coordinated, and that your supporting materials and spokespersons are on point.
Here’s a sample timeline:
- Day -1, 8pm: A transaction is agreed to and the paperwork is executed.
- Day 0, 7:30am: The CEO of the acquiring company emails her managers to make them aware of the transaction. The message includes a cover note with action items, timelines, and proofs of concept (POCs). Attachments include a courtesy copy of the all-employee announcement, manager talking points, frequently asked questions (FAQs), and a description of the acquired company.
- Day 0, 7:30am: Similarly (and ideally simultaneously), the CEO of the acquired company emails his managers to make them aware of the transaction. Like the communication described above, the message includes a cover note with action items, timelines, and POCs. Attachments include a courtesy copy of the all-employee announcement, manager talking points, FAQs, and a description of the acquiring company.
- Day 0, 8:00am: The transaction press release clears the wire service and then designated communications team members reach out individually to key members of the press.
- Day 0, 8:00am: The acquiring company distributes a message to the employees of both organizations, announcing the transaction, welcoming the acquired organization to the team, and providing a vision for the future.
- Day 0, 8:00am: Likewise, the acquired company distributes a message to employees of both organizations, explaining why this decision was made, thanking legacy employees for their service and dedication, and reinforcing the strategy for the combination.
- Day 0, 8:00am: IT posts all employee communications related to the acquisition on a dedicated intranet page.
- Day 0, 8:30am: The leadership team holds an all-employee call, reiterating the talking points and allowing for questions.
- Day 0: 9:30am: Managers hold a huddle with their teams, using provided talking points, then report to corporate communications via email that the meeting took place. This email should also include any questions from employees, which can be rolled into an FAQ document as needed. Track the status of these meetings to identify teams that may require additional communications support.
- Day 0+: Designated company personnel notify key clients that the acquisition has taken place highlighting the potential benefits to the customer and addressing customer concerns. This can include the heads of associations on whose boards company leadership serve.
- Day 0+: Leadership calls and all-employee communications provide regular updates on the integration.
Throughout this process, the project team (see Part 1) meets to ensure deadlines are continuing to be met, issues are raised, and questions are answered. The project manager and assistant/deputy remain engaged with the collective plan, as well as with each department lead. As the combined organization achieves milestones, large or small, celebrate those!
Culture is a critical influencer in any acquisition. If employees within the acquired organization feel that things are changing radically early on, they may not buy into the change, and they may seek opportunities elsewhere. Rely on project leads to provide “temperature checks” and suggest ways to unify the group, if needed.
Take time to take stock. There are always lessons to be learned following a significant transaction. As the dust settles, be sure to complete an after-action review to garner feedback on what went well, what could have gone better, and what should be taken into account in the future. This is also a good time to review templates and procedures that worked well and will be helpful to future activities.
There you have it, your complete Audacia Strategies blueprint for M&A best practices before, during, and after. When you combine these tips for integrating a newly acquired organization with the tips for preparing and announcing the acquisition in the early stages, you have a recipe for M&A success.
Here’s a handy checklist we use when working with our clients throughout the process. Are you ready to see us in action? Schedule your consultation and let’s get you on the books. We’re ready to help your organization transform and grow!
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