Question

Topic: Advertising/PR

Announcing A Company Acquisition

Posted by Anonymous on 10/26/2007 at 3:22 PM ET 500 Points
My client is a mid-sized professional services firm. They are in the process of acquiring the practice of a competitor whose principal is very sick and unable to continue the practice. My client is obviously very concerned about how to announce the new acquisition to the clients and employees of the firm being acquired with the utmost sensitivity and integrity. The firm being acquired is small (under 10 employees), but has a healthy sized client base comprised primarily of small to mid-sized businesses, as well as individuals. The goal is to keep both the employees and clients of both firms well-informed, to promote comfort and confidence in the change, to openly and sensitively deal with questions and concerns that will undoubtedly arise, all while treating the matter with the sensitivity and integrity it deserves.
What kinds of communication strategies and tactics can you recommend that would help fulfill these goals?
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RESPONSES

  • Posted on 10/26/2007 at 3:42 PM Accepted
    Great question. Not really my area of expertise, but for what it's worth...

    I'd highlight the parallels that existed between the two companies, which basically were competing for the same business.

    "This decision is the result of many years of a shared vision of providing our clients with X,Y,Z. The merge will allow us to combine the strength's of both organizations and better serve our clients."

    Grab a quote from the Ceo of the acquiring company speaking about the respect he had for the ill principle's ideals and team and how he respects him as an industry leader.


    Again, not my area of expertise, but I read a LOT of press releases in an industry where mergers happen hourly. (is that like saying I stayed in a Holiday Inn Express?)


  • Posted by ilan on 10/27/2007 at 10:16 AM Member
    I think that this type of situation requires something beyond just "marketing"
    Since you are dealing with a relative small number of clients, the most sensible thing here is to use the human touch.
    Instead of doing anything in the media, PR etc., I would communicate directly with clients and tell them the story as it is.
    In due course, things will balance themselves.
    Everybody, even inhuman corporate types, can relate to a situation such as this, and I'm sure that the new management will be able to demonstrate responsible leadership.
    I would avoid any announcements at this point.
  • Posted by ilan on 10/27/2007 at 10:19 AM Member
    Sorry, I forgot to mention the obvious.
    All the communication should also go internally, to the employees and all the other stakeholders of the business.
    Again, all of it on a personal level.
  • Posted by Jay Hamilton-Roth on 10/27/2007 at 3:36 PM Accepted
    I would first have the leader of the competitor hold a meeting with their staff (potentially even without your client in attendance). The obvious questions: What about my job? What will happen? should be discussed. Giving the competitor room to come together and grieve would be a healthy thing to do with such a small group. The next internal meeting would be to have your client's president/CEO in attendance to answer the questions. At the same time, have the competitor's leadership meet with the client's staff. The goal is to introduce everyone to each other in a healthy/clear way. This must be done before the public is involved, so that the public gets a consistent message.

    The clients are next. Pre-emptively attempt to answer their key questions and schedule 1 on 1 meetings (phone, in person, etc.) with them in the coming weeks. You want to listen to their needs and respond to them.

    Change happens. Show how combining the 2 companies will actually improve things for the better for everyone.
  • Posted on 10/28/2007 at 4:53 PM Member
    I really like the suggestion from bill@ibranz. I think having a well-thought-out "story" (in the form of a brochure) communicates a kind of "purposefulness" (if that's a word) that goes way beyond a face-to-face meeting. Of course, face-to-face meetings with employees and key clients is mandatory, but having the brochures shows real commitment, sensitivity and thoughtfulness. It shows you really take this situation seriously and conscientiously.
  • Posted by mf on 10/29/2007 at 11:52 AM Accepted
    Hi Theresa,

    The first good thing I have to point out is that you are taking it with lots of sensitivity and that I can assure you will leak. Great start.

    In my opinion, because it is a very small, even familiar company your client is acquiring the first step would be for the next executive online from the sick principle to announce what is going to happen. They key aspect to communicate there is "Mr x is now very sick and he can not keep guiding this great group of people into the future. But because he is taking care of us and would like us to continue make this company and ourselves grow, the best way (he) found of doing so is by partnering with our long time competitors. This situation will give us two good things: first we will become part of something bigger, we will have more professional opportunities for ourselves and for the business, and second: we won´t have them as competitors anymore!"

    The last part is to add some sense of humour in a very stressed organization (as I presume it is since their principle is sick).

    Then, the post is on the acquiring company, your client. They should come in and make a presentation of the company and let them know exactly how they are planning the process. It is important to understand and make everybody aware of the fact that if you are buying a company it is because they consider YOU HAVE A LOT OF POTENTIAL. This will motivate employees. We all need a vision, we all need to know where are our professional lives going.

    Then, AND ONLY AFTER, you can do your PR with the general public, media etc, but it is key that employees from both companies find out first hand from their principals.

    I have worked in many company acquisitions and have lots of plans designed, so if you want you can email me to marianaferrari@proceso-i.com and can share best practices and plans.

    After that you can introduce brochures, internal blogs to post questions, etc.


    All the best,
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