A lot of management and owners’ time is spent on mergers and acquisitions. And lots of coffee. What you need more is a smooth communication process – then you can answer all questions and communicate your strategic expertise.
According to the Transaction Trends report by consulting company EY, a total of 535 corporate acquisitions were made in Finland in 2024, of which venture capitalists made almost 40 percent. This corresponds to the long-term average pace.
These transactions are important both for the growth of companies and their continuity. Correspondingly, the entire society loses if the company does not find a buyer or successor.
Private equity companies are experienced and systematic as buyers. Their operations are purely aimed at increasing value. In addition, the emotional level must always be taken into account. Depending on your seat at the table, the transaction may include feelings of winning, achieving, succeeding in one’s life’s work, or painfully having to give up. A skilled buyer moves the deal ahead so that everyone feels they are winning.
Communication creates value for both sides
Communication supports the success of an acquisition in many ways. Deals are not easy to negotiate – it may take months, even years. Get a communications professional to your team a few weeks before the deal is signed – at the latest when the parties have agreed to put their names on paper.
Well-prepared communication creates many benefits:
- Increasing value: When the buyer and seller publicly communicate that they appreciate each other as professionals, the deal is interpreted as successful and valuable to both.
- A more accessible company profile: In order to build commitment, the deal makers must openly talk about a shared vision and future.
- The team stays together: The deal will be wasted if key people and business do not stay in the house.
- The company oozes maturity: A well-executed acquisition and its communication prove that the owners know what they are doing.
This is how you manage facts and timing
The key to succeeding in an acquisition is to communicate shared success and a vision for the future. Well-chosen facts and objectives support this.
The target groups’ reaction to an acquisition is usually “why now” and “why this company”. It is important that both parties are able to express their position. The buyer justifies their choice with their strategy and the seller with shared values that make it easy for the entire staff to continue.
“I read on Facebook that we have been sold!” If this happens, you have blown it. Communication must start with your own staff – discuss openly with them how the deal is a good choice for both parties and employees.
Next, take contact to customers and key business partners, and only then publish the press release to the media and on social media.
The deal may still fall through – how do you take that into account?
If the deal requires approval from the local competition authority, it is wise to announce it in the press release. They usually investigate the matter for a few weeks and then publish the decision. That is also a piece of news, if it is a large deal.
Corporate acquisitions and business deals are typically quick and straightforward. If, in turn, you decide to merge the companies, the choreography may take several months. The press release should then provide a rough timetable for this. It is also wise to start regular communication about the merger, so that customers and staff stay informed.
The messages everybody want to hear
Customers, business partners and the staff want to hear about the motives for the transaction, the status of the personnel and the synergies of the business. The buyer is often asked for their opinion on the market and the next steps in growth.
Good examples of solid messages:
- “The acquisition strengthens our position in the market.”
- “Our services complement each other well.”
- “We are now an even more interesting employer.”
- “We will become the leading innovator in the industry.”
Summary: M&A communication is strategic PR at its best
An experienced buyers aim to increase value, but they also take into account the emotional level – they take the transaction forward so that everyone feels they are winning.
Start communicating a few weeks before signing the transaction.
Communicate first to the personnel, then to customers and partners, and only then to the public
Target groups expect information about the motives for the transaction, the position of the personnel and the business synergies from the acquisitions.
If acquisitions are part of your strategy, be prepared for these questions:
- Why are you making this move
- How will it strengthen you
- What does this mean for your staff
- Will there be changes in the organization or customer service
- Will there be changes in management
- Will the previous owners continue in the company
- What are your new goals
Mailand has acted as a communications partner in over 50 acquisitions, business transactions and mergers. We offer strategic PR services to management and owners.