The success of mergers and acquisitions often depends on the quality of communication established throughout the process. According to McKinsey, good quality merger and acquisition (M&A) communications play an important part in accelerating acquisition value.
This article looks into the overall M&A communications discipline, lists the seven main components of an effective M&A communications plan, and provides recommendations for handling internal and external communications at each stage of the M&A process.
What is M&A communications?
M&A communications is the strategic process of regularly providing information related to an M&A transaction to all stakeholders, focusing primarily on employees from both sides. It covers the messaging around how the transaction is going at all stages: from pre-announcement planning to post-merger integration.
How those involved approach M&A communication should be outlined in the M&A communication plan.
An M&A communication plan (also called a “merger communication plan” or “acquisition communication plan,” depending on the deal type) is a detailed roadmap that outlines merger or acquisition strategies, timelines, actions, and other specifics for conveying critical information about a merger or acquisition to stakeholders.
The key goal of an M&A communication plan is to keep internal and external stakeholders informed, aligned, and engaged.
Why effective communication is essential during M&A
Insufficient M&A communication can drastically impact deal outcomes, leading to their failure. For instance, it can result in cultural clashes, making it impossible for two different organizations to unite. That’s why 60% of executives start conducting cultural assessments early in the due diligence process and make their results a decisive factor in initiating the deal.
On the contrary, clear and regular communication helps boost M&A outcomes and leads to a successful deal.
Here are the main reasons why having a well-crafted merger communication plan is essential:
- Business continuation
A clear communication plan ensures that employees, suppliers, and stakeholders understand the deal’s roadmap, reducing uncertainty and minimizing disruptions. By clarifying changes, timelines, and expectations, companies prevent costly slowdowns and keep the business running smoothly. This approach fosters stability, making it easier for the merged entity to meet its goals.
- Employee morale and retention
Employees are often concerned about job security, roles, and the company’s future during M&A. Rolling out transparent and regular employee communications helps address these concerns. It builds transparency and trust, reducing anxiety and uncertainty. Clear internal communication also enhances employee engagement in the deal process, preventing staff turnover, and maintaining good employee morale, ensuring a motivated workforce throughout the deal and integration process.
- Customer retention
Clients can feel uncertain when companies undergo significant changes. An M&A communication plan should reassure customers that their services or products will not be compromised. By addressing potential concerns early, businesses strengthen customer loyalty, manage expectations, and demonstrate their commitment to maintaining quality. This reduces the risk of customer attrition and ensures continued revenue streams.
- Successful integration
A strategic communication plan guides the integration process, aligning teams and operations from both companies. It helps set clear priorities, fosters collaboration, and accelerates the unification of systems and cultures. Structured communication leads to a smooth transition, helping the combined entity achieve its long-term goals.
Key components of an M&A communication plan
An effective M&A communication plan typically consists of such components:
- Objectives
- Key stakeholders
- M&A communications team
- Key messages
- Communication channels
- Timeline
- Feedback-gathering mechanisms
Further, we describe each of them in more detail.
1. Objectives
A well-thought-out M&A communication plan defines what goals it seeks to achieve throughout the M&A process.
Some objectives might include:
- Effectively communicate the merger to internal and external stakeholders
- Ensure business continuity
- Address potential employees’ concerns
- Maintain employee morale
- Engage employees in the integration process
- Protect customer relationships
2. Key stakeholders
This part of the acquisition communications plan addresses the target audience: internal and external stakeholders.
| Type | Target audience |
|---|---|
| Internal stakeholders |
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| External stakeholders |
|
3. M&A communications team
This section of an M&A communications plan describes the main roles and responsibilities on the M&A communication team.
It might look like this:
| Role | Responsibility |
|---|---|
| Lead/Director/CEO | Oversees the entire communication strategy, aligns with M&A objectives, sets the vision, makes final decisions on messages, and coordinates among teams. |
| Internal communications manager | Manages internal messaging for employees, organizes meetings, and gathers feedback to maintain morale and manage expectations. |
| External communications manager | Handles press releases, social media, investor updates, customer communications, media relations, and public perception management. |
| Legal counsel | Advises on compliance, reviews messages for legal accuracy, manages regulatory disclosures, and prevents liabilities. |
| Marketing specialist | Manages branding and customer-facing communications, aligns messaging across channels, reassures customers, and updates brand assets. |
| HR specialists | Ensure accuracy in employee-related messages, collaborate on onboarding, address job security concerns, and assist with retention strategies. |
Disclaimer: The table is just an illustration of what an M&A communications team might look like. In reality, its composition solely depends on factors such as company size, deal type, workforce capacity, etc.
It’s worth noting that a dedicated M&A communications team is common for larger organizations. In smaller companies, the responsibility for M&A communications typically falls on the HR department.
4. Key messages
Here, you provide the main topics to communicate to stakeholders and the key messages to deliver throughout the M&A process. They may look something like this:
| Topic | What should it inform about (key messages) | Audience |
|---|---|---|
| Strategic rationale | Explain the “why” behind the deal, including the strategic vision, growth goals, and anticipated benefits for both companies. Address how the M&A fits into the larger business strategy. | All stakeholders (internal and external) |
| Commitment to core values | Reaffirm commitment to core values and ethical standards to reassure all stakeholders that the company’s identity, culture, or mission remains aligned, despite the organizational changes. | All stakeholders (internal and external) |
| Benefits to stakeholders | Detail the specific advantages for each group, such as new opportunities, expanded services, improved resources, and increased value. | Employees, customers, investors |
| Impact on business operations | Clarify any anticipated changes to daily operations, including possible shifts in management, processes, or structure. Ensure stakeholders understand what will stay the same and what may change post-M&A. | Employees, customers, partners, suppliers |
| Integration process | Outline the timeline, phases, and scope of the integration, providing details on what stakeholders can expect at each stage. | Employees, investors, customers |
| Job security | Address employees’ primary concerns regarding job security, role retention, and potential changes to benefits or work conditions. This message should be transparent to build trust and reduce anxiety. | Employees |
| Customer assurance | Reassure customers of continuity in service quality. Emphasize the added value they will receive from the combined entity. | Customers |
5. Communication channels
M&A communications planning should also include the breakdown of the main communication channels to use and their purposes.
For instance:
| Communication channel | Description | Purpose |
|---|---|---|
| Company intranet | An internal platform for hosting key documents, FAQs, and announcements | Centralizes corporate communications and resources and provides ongoing information |
| Town hall meetings | Virtual or in-person meetings hosted by the senior leadership team | Address concerns, foster transparency, and engagement |
| Emails | Regularly scheduled email communications with targeted messages | Provide updates, address FAQs, and clarify changes |
| Press releases | Official public statements distributed to media outlets and stakeholders | Announce the change, build public awareness and trust |
| Social media | Updates shared across social media platforms (LinkedIn, Twitter, etc.) | Reaches a broader audience and addresses public interest |
| Customer newsletter | Periodic emails or updates specifically tailored to customers | Provides reassurance on service continuity and new benefits |
| Customer assurance | Reassure customers of continuity in service quality. Emphasize the added value they will receive from the combined entity. | Customers |
| Internal collaboration tools (Slack, Microsoft Teams, etc.) | Enables real-time team communication and collaboration for smooth integration efforts | Support coordination and transparency among teams of the integration management office |
| One-on-one meetings | Individual meetings with key employees, stakeholders, or executives for personalized updates or addressing specific concerns | Build trust, address specific issues, ensure clarity |
| Board meetings | Formal meetings with the board of directors to review M&A progress, financial updates, and key decisions | Ensure board alignment, facilitate decision-making |
6. Timeline
A merger or acquisition communications plan should also describe how communications should be held at each stage of the deal and integration process. The main stages are described below.
Pre-announcement
This is the strategic preparation stage. It involves the creation of all communication materials, crafting messaging, and identifying key stakeholders. It includes collaboration with legal, finance, and executive teams to align on messaging.
Key purpose of communication: To ensure readiness and develop consistent messaging that supports strategic objectives and addresses all stakeholder concerns.
Announcement day
This is when the official M&A transaction communication is reported to the public, employees, investors, customers, and other stakeholders. Information should be clear and factual, avoiding opinion, unsubstantiated claims, and hyperbole.
Key purpose of communication: To create transparency and manage initial reactions by providing accurate information, maintaining trust, and setting the tone for the transition; to avoid speculation and reduce uncertainty
Day 1
This is the first day after the announcement. The M&A communication team delivers follow-up messages to reinforce key information and provide initial answers to stakeholder questions. Leaders engage with employees and address immediate concerns.
Key purpose of communication: To reassure and engage stakeholders right after the announcement, emphasizing stability, continuity, and a shared vision moving forward.
Post-announcement and pre-closing
In this stage, the M&A communications team ensures ongoing communication as the deal progresses through regulatory approvals and integration planning. Information sessions, town hall meetings, and regular updates are organized to manage expectations.
Key purpose of communication: To maintain momentum, address stakeholder queries, and build confidence in the integration process.
Closing day
This is the official closing of the deal, where final announcements are made and new leadership or organizational changes are introduced. It’s often marked by celebrations and further communications to mark the start of a new chapter.
Key purpose of communication: To signal the deal completion, highlight expected benefits, generating excitement and support for the company’s future.
Integration
During this phase, integration plans are put into action, and regular updates are provided to stakeholders on progress. Leaders work closely with teams to foster cultural alignment and address any operational challenges.
Key purpose of communication: To ensure a smooth transition, maintain morale, and encourage alignment with the new structure and goals.
7. Feedback-gathering mechanisms
The M&A communications plan should also detail how the new leadership will gather stakeholder feedback. Feedback is important for understanding how stakeholders react to the deal and its communications and for proactively addressing arising concerns.
Here are some of the main methods for gathering feedback based on their target stakeholder group:
| Stakeholder group | Feedback gathering methods |
|---|---|
| Employees |
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| Customers |
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| Suppliers and partners |
|
| Media and public |
|
After receiving feedback, management should evaluate it, so the relevant teams can adjust M&A communications to deliver the required messages to stakeholders.
Best practices for managing internal communications
Follow these recommendations to ensure transparent and effective M&A communication with internal stakeholders:
- Start communicating early
Inform employees about what to expect before the deal starts. Even if all the details aren’t finalized, sharing preliminary updates establishes a transparent baseline and prevents rumors. Early communication helps employees mentally prepare for upcoming changes and demonstrates that leadership is proactive in keeping them informed.
- Use multiple channels
Reach employees through a variety of communication channels, such as emails, town hall meetings, team meetings, and internal messaging platforms. Different employees engage with different formats, so using multiple channels ensures everyone receives the information in ways that resonate.
- Create a safe space for feedback
Encourage employees to share their concerns, suggestions, and questions by creating anonymous feedback channels, such as surveys or suggestion boxes, and hosting open Q&A sessions. A safe space for feedback signals that leadership values employee input and is willing to listen.
- Highlight leadership presence and support
Ensure that senior leaders and managers are visible, approachable, and actively involved in communications. Leaders should participate in town halls, small group discussions, or regular updates to show they’re engaged and committed to a smooth transition.
- Address employee concerns with empathy
Rather than dismissing concerns, show empathy by addressing these with honest, realistic information. Offer supportive resources to help employees navigate the change. An empathetic approach fosters trust, reduces stress, and helps employees feel cared for during the transition.
How to communicate with external stakeholders during M&A
This is the best practice for handling external communications:
- Announce early
Share the M&A news promptly with key external stakeholders, including clients, suppliers, and investors, to prevent misinformation and speculation.
- Ensure clear and consistent messages
Make sure that all communications share a consistent message about the purpose and benefits of the deal. Consistency across channels reinforces clarity and reduces the risk of mixed messages or misunderstandings.
- Assign spokespeople for media and public inquiries
Assign experienced specialists to handle media and public questions, maintaining a unified voice in external communications. This approach ensures accurate, professional responses that address potential concerns and help build confidence in the transition.
- Focus on client reassurance
Client relationships should be the core of external communications strategies. Prioritize communications that reassure clients, emphasizing continued service quality and any positive changes the M&A will bring.
Common mistakes to avoid in M&A communications
To manage the M&A communications process efficiently, try to avoid these common blunders:
- Ignoring employee concerns
The M&A process can often be frustrating for employees, especially for the target company. They worry about job security, compensation, and benefits. Ignoring their concerns can lead to reduced morale and disengagement. That’s why management should prioritize employee concerns, offering a clear picture of their roles post-transaction and keeping lines of communication open.
- Inconsistent communication
When messages vary across communication channels, it leads to confusion and misinformation. To avoid this, develop a centralized communication plan with approved messaging to ensure all channels and stakeholders receive consistent information.
- Withholding key information
Not disclosing deal specifics or being too vague can create mistrust, leading to employee and stakeholder anxiety. Ensure transparency in communication, making an effort to disclose all necessary details about the impact of the deal on employees, customers, and stakeholders.
- Focusing only on the positive
While it’s logical to share positive anticipations of the deal, it’s also crucial to highlight any challenges that might appear. This fosters trust and helps to keep stakeholders informed.
Key takeaways
- M&A communications is the strategic process of providing information related to an M&A deal to all stakeholders, focusing primarily on employees from both sides.
- The approach to M&A communications throughout the deal is outlined in an M&A communications plan.
- The main components of an M&A communications plan are objectives, key stakeholders, the M&A communications team, key messages, communication channels, timeline, and feedback-gathering mechanisms.
