M&A’s - Don’t Forget the Communications Plan

Your company is about to make the deal of a lifetime. The final terms are being hammered out, and all that’s left is to let the financial and industry analysts, clients, and employees know. You’ve got a slick PowerPoint with tons of charts ready to explain the deal to all stakeholders. Checklist complete, right? Hold on… Not so fast. You’ve barely scratched the surface of what your team needs to do.

The Often Overlooked M&A Communications Plan

Several of McKinsey’s M&A experts wrote a great article outlining some major pitfalls in M&A communications—and they’re spot on. Here’s what they highlight as the most common issues:

• Not having a “leak” contingency plan

• Focusing just on the financials

• Underestimating the volume of integration work

• Going quiet before announcing

• Not all “Day Ones” are the same

• Losing momentum

I’ve led or guided 10 mergers and acquisitions of all shapes and sizes, and I wholeheartedly agree with McKinsey’s list—it should be mandatory reading for any leader navigating an M&A. While I find the last three points particularly insightful, I’d like to expand on them and highlight a few additional areas that leaders must keep in mind.

People Work Here

Leaders often forget that there are humans at the core of everything happening. Jobs change, priorities shift, and even those who keep their roles are navigating a whole new world. Anxiety is real.

None of the mergers and acquisitions I’ve navigated were the same. Even though I was read in early, I wondered if I would be working myself out of a job. In larger deals we knew there would be redundancies, so I definitely felt that anxiety. Was my marketing leader going to be the one who kept their job and thus I would likely keep mine? Or would I be looking for a new gig like so many others?

At least I had time to plan. So imagine how it feels for someone learning about the merger on Day 1? In a nutshell: compassion and transparency matter. A lot. That should be top of mind for every communications plan.

The Quiet Before the Storm

When leadership goes radio silent, it’s like waving a giant neon sign that says, “Something’s up!” Leaders' calendars suddenly fill up, and they stop responding to emails or meeting requests for previously high-priority projects. They start taking unusual or more frequent trips. Spending freezes kick in, and then the watercooler talk (or Slack messages) starts to spiral. Anxiety, irritability, and disengagement follow.

The fix? Keep things as “business as usual” as possible:

• Stick to your regular all-hands and team meetings, even if they’re shorter or in a different format.

• Share the good stuff—sales wins, customer renewals, you name it.

• Stay visible. Even a quick “Hey, I’m traveling today, but wanted to update you on XYZ” goes a long way.

It’s definitely challenging when there is so much other “stuff” needed ahead of signing a deal, but if the deal falls apart at the 11th hour (and they do!), you don’t want months of progress and momentum lost to rumors and distractions.

Day 1’s and Snowflakes: No Two Are Alike

McKinsey got it right: no two Day 1s are the same. What I would add is that the elements of the plan might vary, but you can not skimp on the execution. A multi-billion-dollar public company acquisition is a completely different ballgame compared to a $25 million private company deal—but communications preparation is critical.

Public acquisitions come with a mountain of deliverables, whereas smaller deals might feel like mere hills in comparison. Client and partner impact can vary significantly based on the size and scope of the merger, and the number of employees or global reach adds different types of complexity.

Whether it’s a massive merger or a smaller transaction, jobs and livelihoods are on the line. Cutting corners on communication just because it’s a “smaller deal” is never an option.

Losing Momentum

Losing momentum is a risk both before and after the merger. Post-merger, people are trying to figure out shifts in strategy, adjust to new roles or leaders, and navigate system integrations. There are definitely going to be hiccups along the way to a full integration. Change is hard and takes time.

Sustained communication is the antidote. Here’s how to keep things moving:

• Keep the updates coming. Share what’s working, what’s not, and what’s next.

• Be transparent about challenges. If something isn’t going smoothly, explain why and how you’re addressing it.

Without consistent communication, people flounder, and momentum stalls. In the absence of information and guidance people will flounder and momentum will come to a halt. Keep the information flowing to maintain focus and alignment. And make sure to celebrate the "wins" along the way!

What Else?

Regardless of the size and scope of the M&A, these are must-haves to keep in mind as you develop your communications plan:

Culture Eats Everything

Culture clashes can sink a merger faster than you can say “synergy.” Even when two companies seem aligned during the due diligence process, communication styles by leaders can vary wildly.

At one company I was at, our CEO gave detailed quarterly updates that included a great deal of information and insight into the company financials and overall performance. After a merger, the new CEO barely skimmed the surface in all-hands meetings. People were left scratching their heads. Worse, we kept hearing, “That’s not how we do things around here.” Ouch.

We had another merger less than a year later that would again double the size of the organization and that new company and the people from my old original company would have recurring conversations with the new company employees about how alike we all were compared to the acquiring company. That definitely created a mild "us" against "them" mentality sometimes.

A little acknowledgment goes a long way: “I know you’re used to more detailed updates, and here’s why we’re doing it this way and we'll definitely consider suggestions on other information to include next time."

By acknowledging and communicating how the cultures will integrate and how it's important to prioritize efforts to build a shared identity, it sets a tone the rest of the leaders and managers can emulate.

Deliver a Clear and Unified Message

Inconsistent messaging causes confusion and erodes trust. Employees, customers, partners, and stakeholders all need to hear the same story—and be able to tell it, too.

For any merger, I have an extensive spreadsheet to track all the necessary elements, such as FAQs, website content, customer and partner emails, and webinars. It also includes training on key messaging.

Before any merger, those involved receive these materials and attend a meeting covering the purpose of the merger, expected value and benefits, impacted parties, timeline, and next steps. This insures everyone is singing from the same song book.

That way people hear the same exact message during the employee announcement, on the customer webinar, on the company website, on social media, etc.

Other Pitfalls to Avoid

• Insufficient Transparency: Failure to provide enough information about the merger, timelines, and decision-making processes then leads to rumors and speculation to fill the void. This then leads to anxiety, decreased morale, and employee turnover.

  Leaders need to be as transparent as possible about the process, addressing what is known and acknowledging uncertainties. Regular updates help reduce speculation.

• Failure to Engage Key Stakeholders: Key stakeholders aren’t just your leaders or board or clients. Sometimes it’s the people with considerable influence. They might not even be managers, but other employees trust them to tell them the truth. Those people can be your best advocates and can help keep people engaged.

• Not Building Feedback Loops: Creating channels for honest feedback is an important part of the communications process. You know those influencers we just talked about? They can also offer a great pulse on what the organization is saying because people are sometimes reluctant to tell leaders the truth because they don't want to not look like team players. Proactively address concerns or misinformation with positive, constructive communication to build trust and foster a transparent culture.

The Bottom Line

Everyone knows the stat: 70% to 90% of mergers fail. There are many reasons why this happens. There’s no reason that communications, or the lack of, should be the reason. reason that communications, or the lack of, should be the reason.