Mergers & Acquisitions

Hey Folks,

Word on the street is your company is merging or being acquired, and you have some loyal and now very curious customers (rightfully so). How do you preserve and enhance the customer experience and loyalty during a merger or acquisition? What are some ways to communicate the benefits and value proposition of the new company to your customers?

We tend to focus on a successful merger/acquisition at the company level - but neither company exists without its customers!

------------------------------
Dawn Feltner
------------------------------

Great question Dawn. As a CM, I suggest transparency. Coming across as though your hiding critical information that the customer needs for their business continuity is disingenuous and can really harm the relationship.   

------------------------------
angela
------------------------------

Good question, Dawn. As change leaders, it's imperative that we don't stop stakeholder analysis at the employees, and especially in M&A situations. There are always other groups to investigate, from vendors, partners, and customers to the community or communities the organization serves (think nonprofits, educational institutions, and government stakeholders). Key messaging plans can address these stakeholders -- Quick Response Guides or FAQs on how to talk to various groups, for instance -- and even role-playing sessions for champions and others. In some cases, a survey can both provide valuable insights about stakeholders and give them information and awareness of the coming change. There are a number of communication tools available, but I believe the first step is to understand who is in the wider stakeholder pool. I'm curious what others have done to include these non-employee stakeholders in the change.

------------------------------
Catherine Mitchell
------------------------------

Hi Dawn,

This is a great question, with some valid points on preserving the customer relationship.

As part of preserving the customer relationship while complying with the company's Confidentiality and Non-Disclosure policies, I would first ensure the following as part of the Stakeholder Engagement Plan:

1. Key messages have been pre-identified and developed for the customer stakeholder group in relation to the M&A (What information do our customers need to know, when, and why).
   
   
2. Senders of the information and communication vehicles have been pre-identified for communicating the key messages to the customer stakeholder group. (Who and how clients hear about the information is essential for credibility and legal compliance).
   
   
3. Most importantly, prior to disseminating information with customers (public and non-public), I would ensure that all messages have been formally reviewed and approved by the company's Corporate Communications, Public Relations, and Legal Groups (and any other function that is part of the M&A Communications Approval Framework).  Failure to do so could lead to unintended impacts with adverse outcomes.

I'm confident that you and your team have this covered and wish you all the best in this M&A transformation journey. 

Warmest Regards,

Gloria Archer, MBA, CCMP, PMP, Prosci
gloria@evolvsysllc.com 

------------------------------
Gloria Archer
------------------------------

Hi Dawn, Great question! And Gloria, I love your response. Our standard communications practice when we acquire others is exactly as you described. The buy side will own this, but it should be in partnership with the sell side. The sell side should be waving their hands asking for participation if not automatically being brought in. Transparency is key, as others stated too. There is a story to be told - there should be a positive impact for clients of the acquired organization. Message those front and center, and deliver that message with leadership from the buyer.

------------------------------
Becky Persak
Aon
Head of M&A - Leadership, Culture & Change
------------------------------

Original Message:
Sent: 2024-01-18 11:09
From: Gloria Archer
Subject: What about the customer?

Hi Dawn,

This is a great question, with some valid points on preserving the customer relationship.

As part of preserving the customer relationship while complying with the company's Confidentiality and Non-Disclosure policies, I would first ensure the following as part of the Stakeholder Engagement Plan:

1. Key messages have been pre-identified and developed for the customer stakeholder group in relation to the M&A (What information do our customers need to know, when, and why).
   
   
2. Senders of the information and communication vehicles have been pre-identified for communicating the key messages to the customer stakeholder group. (Who and how clients hear about the information is essential for credibility and legal compliance).
   
   
3. Most importantly, prior to disseminating information with customers (public and non-public), I would ensure that all messages have been formally reviewed and approved by the company's Corporate Communications, Public Relations, and Legal Groups (and any other function that is part of the M&A Communications Approval Framework).  Failure to do so could lead to unintended impacts with adverse outcomes.

I'm confident that you and your team have this covered and wish you all the best in this M&A transformation journey. 

Warmest Regards,

Gloria Archer, MBA, CCMP, PMP, Prosci
gloria@evolvsysllc.com 

------------------------------
Gloria Archer
------------------------------

Hi Rebecca, thank you for clarifying the buyer and seller roles in this communication process with customers.  Understanding those roles are so important as part of getting the word out to customers effectively. 

------------------------------
Gloria Archer
------------------------------

Original Message:
Sent: 2024-01-18 14:50
From: Rebecca Mox-Persak
Subject: What about the customer?

Hi Dawn, Great question! And Gloria, I love your response. Our standard communications practice when we acquire others is exactly as you described. The buy side will own this, but it should be in partnership with the sell side. The sell side should be waving their hands asking for participation if not automatically being brought in. Transparency is key, as others stated too. There is a story to be told - there should be a positive impact for clients of the acquired organization. Message those front and center, and deliver that message with leadership from the buyer.

------------------------------
Becky Persak
Aon
Head of M&A - Leadership, Culture & Change
------------------------------


Original Message:
Sent: 2024-01-18 11:09
From: Gloria Archer
Subject: What about the customer?

Hi Dawn,

This is a great question, with some valid points on preserving the customer relationship.

As part of preserving the customer relationship while complying with the company's Confidentiality and Non-Disclosure policies, I would first ensure the following as part of the Stakeholder Engagement Plan:

1. Key messages have been pre-identified and developed for the customer stakeholder group in relation to the M&A (What information do our customers need to know, when, and why).
   
   
2. Senders of the information and communication vehicles have been pre-identified for communicating the key messages to the customer stakeholder group. (Who and how clients hear about the information is essential for credibility and legal compliance).
   
   
3. Most importantly, prior to disseminating information with customers (public and non-public), I would ensure that all messages have been formally reviewed and approved by the company's Corporate Communications, Public Relations, and Legal Groups (and any other function that is part of the M&A Communications Approval Framework).  Failure to do so could lead to unintended impacts with adverse outcomes.

I'm confident that you and your team have this covered and wish you all the best in this M&A transformation journey. 

Warmest Regards,

Gloria Archer, MBA, CCMP, PMP, Prosci
gloria@evolvsysllc.com 

------------------------------
Gloria Archer

Dawn,

What a great question.  I have experienced examples where the change process comprehended and engaged the customer base and where it did not.

In the instance where customers were not part of the change management process, the acquisition failed miserably.  Shortly after the announcement, most of the distributors of the acquired product line left and the business was closed and written off.  Ouch!

------------------------------
Anthony Casablanca
Co-Founder and President
GriefLeaders LLC
"Changing How Change is Implemented"
www.griefleaders.com
]
------------------------------

Thanks all for your thoughtful responses - gathered some great tips I plan to integrate moving forward. 

• Ouch indeed Anthony! Would love more insight on your examples where the change process comprehended and engaged the customer base - and positive outcomes. 
• Gloria - great takeaways and tactical advice! Appreciate you and Rebecca validating the Stakeholder Engagement Plan as the crucial first step. 
• Angela & Catherine - transparency has always been my favorite word when it comes to CM. Great idea on the FAQ & quick response guide too. Easy to integrate into the overall strategy. 

------------------------------
Dawn Feltner
------------------------------

Original Message:
Sent: 2024-01-19 12:42
From: Anthony Casablanca
Subject: What about the customer?

Dawn,

What a great question.  I have experienced examples where the change process comprehended and engaged the customer base and where it did not.

In the instance where customers were not part of the change management process, the acquisition failed miserably.  Shortly after the announcement, most of the distributors of the acquired product line left and the business was closed and written off.  Ouch!

------------------------------
Anthony Casablanca
Co-Founder and President
GriefLeaders LLC
"Changing How Change is Implemented"
www.griefleaders.com
]
------------------------------