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The attached presentation offers a guide to communication during a merger or acquisition.

The attached presentation offers a guide to communication during a merger or acquisition.



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Merger1 Merger1 Presentation Transcript

  • Mergers and Acquisitions
    • The term “Merger” describes the highest form of strategic
    • partnership, in which two or more legally independent
    • organizations merge together to form one organization- both
    • legally and in economic terms
    What’s Communication got to do with it?
  • The Unfolding of a Merger
    • Assessment and Readiness
    • Negotiation
    • Immediate Pre – merger
    • Legal Merger
    • Immediate Post Merger
    • Integration
  • Stake Holder Group Problems and Resistances Board Members/ Directors Fear of a dominating partner, Hostility of CEO’s of partners Geographic issues/Financial issues CEO/ Senior managers Losing game? Loss of responsibilities and tasks Unclear organizational structure Employees Lack of understanding of need of merger, Job security, Compensation, Role & Location change, uncertain future Customers Brand issues/management of ‘my’ account, price/ delivery/ Product/ quality issues/ technology Shareholders Returns, Dividend payments, Altering ‘my’ Shareholding Pattern Government /Financial institutions Revenue/ Tax/ Governance/ Regulatory issues Vendors/ Suppliers Loss of business, future direction Stakeholder Perceptions
  • Develop the Integration strategy Integrate Systems Operation Keep managing the institution CEO takes leadership position Deal with “What about me?” Ongoing through merger Establish The Power Structure People & Communication Key Issues in Integration
  • People – What goes on in their minds Maslow’s Heirarchical Needs Self Actualization Self fulfillment Self Esteem, Feeling good, Pride, Confidence Love & Belonging Safety : Security from attack Hunger and Thirst What Is our Strategy How are we going to win? What will my job be? My role in the Organization. Who are the people I have to spend the rest of my life with? Will I have a job? Will there be layouts?
  • Merger Communication
      • A strategic Communication Game Plan
      • Managing the expectation of all Stakeholders
      • Positioning the perception of the venture
      • Rationale for synergies and strategies
      • Key messages – general and specific
      • Managing brand communication
  • The Communication Strategy
      • Start early
      • Anticipate employee questions and concerns
      • Use all the communication tools
      • Set communication expectations
      • Over communicate
      • Communicate the business case
  • Internal Communication
    • Key Components
    • Move fast , but to a well thought – out plan
    • Do not over promise
    • Broadcast information to all employees
    • Keep employees focused on customers
    • Identify change agents
    • Create an acquisition communication team
    • Create help desks/ helpline/ help emails
    • Do a comprehensive Q & A for employees
  • The Business case – What employees want to know
    • What is the New Company?
      • History, Vision, Customers, Achievements, Structures etc.
    • Who is the leadership?
    • Why the acquisition?
    • What is our outlook as part of the New Company?
    • How does it fit into long term goals?
    • What are the advantages for customers and shareholders?
    • What is in it for me?
    Communicating the Business Case
  • Core Messages
    • Customers
    • Regulators
    • Government
    • Employees
    • Shareholders
    • Vendors/ Suppliers
  • Principles of Communications
    • Treat ALL impacted staff with dignity
    • Timing of any announcement to take into account the needs of all stakeholders
    • Share all information known that is relevant
    • Ensure consistency of message in both organizations
    • Available to listen i.e. Strong feedback loops
    • Empathetic, understand the people implications
    • Use line managers a key communications whenever possible after launch
    • Supporting through provision clear guidelines
    • Flexible to their needs e.g. different cultural context
    • A clear agreed timetable of events and responsibilities
    • Face to face communication wherever possible
  • Communication Content Communication Content
  • Mergers and Corporate Culture
    • How is Corporate Culture determined?
    • History
    • Management styles
    • Values
    • Beliefs
    • Systems / Structure
    • The way we do things here
  • Merger and Culture
    • Cultural differences
      • Cross – national
      • Cross – organization
      • Cross – functional
    • The dynamics of culture conflict
      • Realization of differences
      • Accent on highlighting differences
      • Mutual stereotyping and blame game
      • Battle for cultural dominance
  • Merger and Culture- Identify Cultural Difference Check List Characteristics Of culture Perception of other organization True False Other Perception True False Democratic Bureaucratic Autocratic People driven Team orienting Transparent/Open Long term driven
  • The Integration
    • Planning for success
    • Guiding Principles of Communication
    • The Communication team
    • What people want to know
    • Tools to support effective communication
      • FAQ’s
      • Process for staff to submit quarters
      • Feedback mechanism
      • Merger newsletter
    • Walking the Talk
  • Important Lessons
    • A merger is a planned crisis
    • Culture can be used as a management tool
    • People are messengers and messages
    • Many leaders, many projects, many issues
    • Brand and customers must be paramount
    • Get help
  • Key messages The sale is a good deal for both companies We can realise the full potential of the business making us No. 1 or 2 in the region The price we paid is right Shareholder value Focus Narrower deeper options Narrower geographic focus New economy New opportunity in Asia - Internally We will be the leading company [insert area] and the region There will be great opportunities as we develop the new business Until then it’s business as usual There will be changes – but they will be carefully considered by the new management We will communicate with you regularly, openly and honesty Standard Chartered Grindlays integration update 19 May 2000
  • Letter from the CEO What is happening – background information Why it is happening – context for change When is it happening – high level time-line of events What this will mean to me - Overview of HR processes, options etc Who is the other guy? (Brief intro, cultural information and the map showing fit) What’s next? - What does it mean for my customers? – Integration process How do I find out more? – key contacts, Internet addresses Questions and Answers Managing Change Counselling contact points and service Communication Content Standard Chartered Grindlays integration update 19 May 2000
  • Questions and Answers Will my job be safe? answer How will the best people for the job be determined? answer When will I know about my role? answer Will my reporting lines change? answer Is there going to be an opportunity to take voluntary redundancy? answer Will the branch where I work remain open? answer How will it be decided which branches remain? answer If my branch is closed will I have to move to another location? answer Will we retain our name? answer Will the merger impact my benefits under the of pension scheme? answer I have a loan– How will it be treated after the merger? answer Standard Chartered Grindlays integration update 19 May 2000