24 March 2014

Challenge: employee loyalty during M&A

An invasion of fire ants. The Loch Ness Monster. Donald Trump’s hair. Reaction to these elements pales in comparison to the employee panic that occurs during mergers and acquisitions. Whether appropriate or unfounded, people’s reaction to the news of their company being sold is often one of worry and dismay. Unaddressed, such feelings grow into contempt that could result in the loss of customers, personnel, and even the deal itself. While there’s no perfect time to announce a transition, it’s inevitable that you need to communicate it. It takes only one nervous sales representative interviewing at a competitor to start a ripple that shakes your entire value chain.

Your best bet is to have a communications strategy before you begin. It should cover what information to release, how and when to release it, and to whom. Only through such a plan can you ensure you keep your staff and customers content – letting you focus on the deal at hand and carving out your best possible outcome.

Over my career in conducting deals for my own companies and representing sellers in theirs, I’ve seen a few things that work, and many more that don’t. I’ve summarized some thoughts to help you avoid such pitfalls in your own processes.

The following seven steps thus serve as a guide for you in devising your plan and managing the critical communications that surround your transaction. Consider these in your efforts, and feel free to adjust to your unique circumstances or call me for support.

Edit content