When two companies merge, the complexities, emotions, and often sweeping changes behind the deal can hinder effective communication to key stakeholders. Ivar Kroghrud, CEO of QuestBack, Europe’s leading enterprise feedback management (EFM) provider, shares his views on the importance of implementing a seamless communications stra tegy during M&A and rebranding activity and the lessons learned, following QuestBack’s own recent acquisition and integration of Globalpark as well as three more acquisitions over the past four years .
One of my favourite English sayings is `the cobbler’s children always run barefoot`. This means that companies may in fact not `practice what they preach` when it comes to using their own products or services. This came into sharp focus recently when my company acquired Globalpark, and subsequent rebranded the company to become part of QuestBack.
It should be axiomatic that managing relationships is an essential element in the merger and acquisition process and it is imperative that continuous and appropriate communication keeps the workforce focused, shareholders committed and customers informed. In particular, without the support of key figures in these groups, the smooth integration of two or more businesses can easily falter.
Managing customer expectations is at the core of the merger and acquisition process. This must be done carefully and strategically, with the full support of the business and harnessing the full resources of the company. If not, it’s very easy to send out mixed messaging, creating confusion, and presenting competitors with an opportunity to make quick gains.
We learned a lot during the process, so here are our top tips for organisations rolling out an M&A, integration and re-branding strategy.
1. Moving Forward
Mergers and acquisitions continue to be a dominant growth strategy for organisations worldwide and help to achieve targets and appeal more to stakeholders. Understanding how the M&A process works is fundamental to the success of a merger as this will help the smooth transition for both employees and customers.
2. Prepare to plan
Finding the right timing for a merger is imperative. A realistic timetable must be drawn up, outlining a step-by-step basis to support a smooth transition. Building in contingency time to an M&A strategy is particularly important if the two organisations are located in differing time zones, and processes are often drawn out due to different working hours. Factors outside the company’s control such as activity with lawyers can negate the need for caution when on a tight deadline. The complexity of carrying out a merger and subsequent rebrand initiative is a lot harder than people envisage. Having a team with clear goals and a realistic timeline are important, and expect last minute changes.
3. Integrity is key
A brand is communicated through a number of different channels today, including both online and offline. It is important that the new brand has one ‘feel’ to it, so that the customers and stakeholders identify with it immediately. Be sure to rebrand all owned channels properly, and adjust the messaging where your brand is displayed. Managing social media channels is vital as many customers take to Twitter or Facebook to voice opinions.
4. Keep your customers clued-up
Keeping customers informed of a merger and the announcement of a rebrand is one of the most important factors in this process. By issuing both relevant and regular communications about the acquisition, and activities to be undertaken during the merger, an air of transparency will ensure that all parties involved feel fully informed.
5. Share with stakeholders – both internal and external
Work closely with other departments in your organisation and with your external partners. By creating an open dialogue, stakeholders feel more secure and more involved with the merger. Reach out to your partners in PR and media, design, channel, trade associations, industry bodies with as much transparency as possible. This in return will help them to support your transition, and ensure they are on message, with a clear understanding of the business process and any rebranding.
6. Ability to ask questions
Giving employees and customers the opportunity to ask questions about the merger and receive a speedy response builds valuable goodwill and credibility. By allowing questions to be asked and quickly responded to means relationships can be built with the new or merged brand. A combination of surveys with hidden identity and open discussions is recommended to get a real understanding of employee’s opinions. Responses posted from the appropriate senior executive will also allow trust to remain within the company.
7. Remember details
It’s easy to get carried away with the glamorous and exciting part of a rebrand, or bogged down with the technical and internal issues relating to the merger. However, the design side of rebranding is particularly important. The tasks such as ordering new business cards, changing the signboard, informing banks or suppliers can sometimes be forgotten and is an oversight that should not be overlooked.
Mergers and acquisitions allow companies worldwide to grow, helping with development and expansion. A successful M&A begins with a clear strategy followed by distinct branding messages and planning. Incorporating these top tips into your M&A process will help in enabling a seamless and intelligent integration.
