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Consultants ease the burden in merger communications

When companies announce their intent to merge, their human resources and communications departments are often asked to develop and implement merger communications plans. But those departments are also responsible for other merger-related duties such as developing and communicating new benefits plans and rebranding, as well as their own day-to-day tasks.

Too often, communications get shunted to the side. And yet, say those with experience in combining companies, effective communications can mean the difference between a smooth integration and an extremely rough crossing.

“Faced with a lack of information, people will invent their own,” says Don Empie, communications director at UOP in Des Plaines, Ill. “And generally, what they invent is all wrong. That makes it much harder to keep everyone on the right track.”

Phil Ruben, a partner who specializes in mergers and acquisitions for Chicago law firm Levenfeld Pearlstein, points to a recent bank merger as an indication of what can happen when communications get short shrift.

“Employees of the acquired bank were leaving in droves before they even knew what the merger agreement was or how it would ultimately affect them,” he says. “If the companies had done even a preliminary communications campaign to reassure the employees, that might have been prevented.”

He adds that merger communications may require expertise that most companies’ human resources and communications staffs just don’t have.

“I’ve seen companies with big corporate cultures buy smaller firms with entrepreneurial cultures, and they just don’t know how to bridge the gap,” Ruben says. “It’s very important that communications teams include people from both organizations, but a third-party consultant can be a good idea, as well.”

An outside communications consultant can focus solely on creating and implementing merger communications plans, leaving internal staff free to concentrate on other areas. Additionally, Ruben says, a third party can take a larger view of the entire process.

“An experienced merger communications adviser can mediate a little bit if there’s some cultural disconnect,” he says. “And a third party isn’t caught up in the emotional upheaval that accompanies any merger. They can be objective in determining how best to communicate news — whether good or bad — and deal with any feedback.”

Communications planning should start early — ideally, at the same time the due diligence team begins its work, he adds.

“It’s critical to have a communications plan in place on Day 1, or the day the merger gets final approval,” he says. “Every employee in the company is nervous about his or her job, and the company needs to be ready to communicate immediately.”

Day 1 communications may include special editions of employee and shareholder publications, press releases, executive talk tracks, videos, “meeting in a box” materials for facility managers, media policies, brochures and flyers for bulletin boards and handouts, intranet postings and blogs, dedicated merger e-mail boxes and collateral for site visits.

The sheer quantity of materials required can be daunting, particularly if the same person or department is charged with developing both internal and external communications. Merger communications specialists can prioritize and manage production deadlines to ensure all the required materials are ready, with the proper messages, at the appointed time.

To avoid overwhelming any one person or department, some companies assign internal communications to one department, such as human resources, and external communications to another, such as investor relations, often delegating the copywriting, graphic design and project management to an outside agency. In that case, merger communications consultants can be pivotal in ensuring consistency in messaging and branding across all audiences, as well as making sure the materials are produced on a timely basis.

And, says Empie, that expertise can be valuable regardless of how many sites or employees are involved.

“I have gone through some acquisitions in which only about 15 people were affected, but all the same issues came up,” he says. “It’s important to get the communications piece right every time.”

Good merger communications don’t just happen. They must be carefully structured to speed assimilation and accurately depict the new company’s culture, from Day 1 through full integration. For information on how The Simons Group can help your organization craft a successful merger communications campaign, contact Lee Zoldan at lzoldan@thesimonsgroup.com.