Upcoming SlideShare
Loading in...5




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.



Total Views
Views on SlideShare
Embed Views



0 Embeds 0

No embeds



Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
Post Comment
Edit your comment

    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