Question

Topic: Strategy

Internal Announcement Of Company Acquisition

Posted by KathyAd on 9/22/2008 at 9:45 PM ET 50 Points
Does anyone have suggestions about handling a company acquisition, in terms of announcements to internal employees? My company is acquiring another firm, and the deal closes in a few weeks. The proposed deal was announced internally at a company meeting about a month ago, but employees have not been told much since then.

My CEO does not currently have ANY plans to send an email, do a video conference, etc. to rally/inform the employees once the deal closes. He feels (a) we are already way too busy launching this to customers and prospects (which is true) (b) there isn't much worked out (ex. we don't know who the VPs will be, which product lines we'll keep, which product lines will merge together, etc.) (c) it's hard to get everyone together (we are spread across the United States, at 3 offices and a number of home offices) (d) alot of our people have billable hours (I think he is hesitant to have them sit on a conference call when there "isn't much to say.)

I agree we do not have much worked out and we are very busy, but I think we need to at least do SOMETHING at the closing. I am thinking:

- 1 week before closing: email employees with a rah-rah email telling them we are excited for the acquisition, that we'll do great things, and that a press release is being distributed in 1 week, and that more marketing materials are in progress.

- day before closing: email employees again, and again give a go-team feel, attach the new company logo, tell them a press release is making this public tomorrow, tell them the web site will just have a new splash page for now but will be completely revamped in 4-6 weeks, and tell them we'll have a VIDEOCONFERENCE in 3 weeks when we know more, and tell them the truth: that no one is being secretive, it's just that alot of things are up in the air.

- the day before closing: have a fruit basket (or something nicer??) delivered to the company we're acquiring, with a positive message about how we're excited.

- 3 weeks after closing: (a) have a videoconference saying more (b) give a gift to each employee, such as a flash drive with logo or a nice shirt with logo, with a notecard that says something like "we're happy to have you on board" or "here's to our future"

- internal newsletter: after the videoconference, start a monthly internal newsletter.

Does anyone have other suggestions? We truly are very busy, but at the same time, I think we need to welcome this new company with open arms so their employees (and ours) are enthusiastic.

Please let me know if you have suggestions! Thanks so much!



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RESPONSES

  • Posted by KathyAd on 9/22/2008 at 11:16 PM Author
    Oh yes, involving employees... that is a good point... I have been one of the lucky ones because I am involved in produt launch, but I think alot of people to date have not been "involved."
  • Posted by Frank Hurtte on 9/22/2008 at 11:17 PM Accepted
    Unfortunately, the human condition equates to this: If people aren't kept informed, they will fill the vaccuum with misinformation. And, that misinformation will not be flattering to the company.

    I suggest a message delivered via conference call. All employees at 10 minutes prior to start of the first shift. The call lasts just 10 minutes because everybody has to get to work. Then repeat the process weakly.
  • Posted by CarolBlaha on 9/23/2008 at 7:28 AM Accepted
    Make the focus on who it effects them -- and their customers. They will be asked, and they'll feel insignificant if they don't have an answer.

    Instead of a fruit basket, send the acquired compamy muffins and fruit, enough for the entire team to have a welcome breakfast.

    And I like the staggered approach. In a perfect world the companies will mesh seamlessly. But in reality you'll find a few bumps in the road, and a staggered approach will let you keep everyone informed of changes.

    Sell Well and Prosper tm
  • Posted by Jay Hamilton-Roth on 9/23/2008 at 9:02 AM Accepted
    Focus on the reason for the acquisition. What specifically was the motivation to acquire? What's the long-term goal for the acquisition?

    Your message is, "We're excited to move to our long-term goals, and we are too busy right now to focus on the short-term integration. Business-as-usual (with some naming changes) will be the rule. Change will eventually occur, but right now everyone should continue doing what they were doing until we have a series of meetings/presentations about our strategy."
  • Posted on 9/23/2008 at 10:56 AM Accepted
    One of the biggest demotivators and drain on resources can be lack of information. This can also cause great stress among employees, reducing their overall productivity.

    I think you are right to give some information to them, so long as they feel part of the team and that they are being informed. You don't need to spell out every detail to them, especially since the details haven't been worked out, but I think you have some good ideas.

    I would add that it would be a good idea to give them some sort of timeline on when decisions will be made or at least next steps and communicate with them regularly. Every 2-4 weeks they should receive some type of information that tells them any decisions that have been reached, what the goals are for the next 2-4 weeks, and when they can expect to hear more. This will at least give them some idea of what to expect and when they will hear about it.

    Good luck!
  • Posted by KathyAd on 9/23/2008 at 11:07 AM Author
    Oh, you are all giving such great information. I am so glad I posted this question, since you are addresing bigger issue also -- that employees are probably feeling devalued due to lack of involvement (I have been there, so I comletely get it), and that the CEO is in his own world (he is a good guy, but is insanely busy and is extremely understaffed, so all he can address is the biggest crises facing him at that moment -- everyone here knows it's an issue.) Oh, please, if anyone has more input, do tell!!
  • Posted by Jessica_Castro on 9/23/2008 at 1:00 PM Accepted
    Zahid I'm pretty sure that the point of email versus face to face is that all employees including herself are extremely busy and do not have the time to sit down and address every different employee's personal worry.

    I think the approach outlined would work great. There will always be problems during an acquisition and nervousness associated with new people however that comes with the territory. You do what you can with what you have got, and while it is important to value your employees and keep them in the loop on the details of the acquisition its more important for your customer (the ones that keep you in business) to understand it as well. If your focus tends to fall more towards their needs and other important factors...I do believe a worse mistake could be made....
  • Posted by Jessica_Castro on 9/24/2008 at 11:34 AM Member
    Fair enough...I am always a strong believer in experience over theory. However, I don't see why an email would be perceived by employees as cold. If the email is written correctly with each employee in mind why would it be considered disrespectful?
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