With companies in a variety of industries striving to shake off stagnant revenue growth and smaller market players becoming prime targets for market leaders looking to add
resources, mergers and acquisitions are becoming increasingly common.
Developing a communications plan surrounding an M&A growth strategy will influence a company's success in acquisitions, and positive results will set the stage for larger,
more prestigious acquisitions. Strategies from the PR department should be involved from the beginning in any successful M&A plan.
Third party credibility is most persuasive. The M&A process is always most effective for companies with strong brands. Enacting an M&A strategy requires support from a
variety of external audiences (financial analysts, financing partners, prospective acquisition candidates, etc.). Third party credibility statements support brand building, so it
is important for companies implementing an M&A strategy to seek out third party credibility through proactive public relations.
Be the "White Knight." There are always two ways to look at an issue. A merger or acquisition that might benefit much of the market may be vilified by players who sense
increased competition or market consolidation. Public relations should attempt to contextualize mergers and acquisitions in a way that demonstrates value to the market. Point to
other M&A successes or expected benefits for both the acquiring company and the company being acquired.
Remember the brand. We mentioned that a strong brand supports an M&A. Be careful not to get caught up in M&A promotion and overshadow your company's true brand and
market messages. With Wall Street scrutinizing M&A strategies, it's important to keep pushing the fact that the company stands for something and has a brand beyond its current
merger or acquisition. Be sure all messages contain information about the core business - the industry success and expertise that set the stage for the acquisition.
Remain visible in the business community. Take a look at the company's business relationships and consider how those persons, organizations or corporations can assist with an
M&A strategy. Could they facilitate introductions to financial backers, M&A targets and other businesses within the market that support an M&A strategy? The world
works on relationships.
Don't neglect internal communications. Change can be an uncomfortable thing for many people. Be sure channels are created to communicate with internal audiences as information
becomes public, to avoid rumor-spreading or speculation. Also, invest time and resources to ensure each employee understands and is able to articulate the company's value
proposition and messaging. Formal spokespeople will handle interviews, briefings, etc. but each employee should be able to offer a consistent answer to the question, "What does
your company do?"
Even if the economy snaps back sooner than expected, mergers and acquisitions will continue as a proven growth strategy. A communications program should support a company as it
enacts an M&A strategy, helping to achieve the best possible outcome in a timely and cost effective fashion.
Marc Hausman is president and CEO of Strategic Communications Group, a public relations and marketing agency serving technology, IT services, software, Internet, and
telecommunications companies. For more information, contact Marc at 301/408-4500, or by email at [email protected]. Visit
Strategic on the Web at http://www.gotostrategic.com.