Everyone knows, or should know, that closing the deal is only the first chapter. Integrating the acquisition is the next chapter and could be the determining factor in whether the deal will eventually be considered a successful and accretive transaction. The bridge between those two stages, acquisition and integration, is communication.
As we worked toward closing our first substantial acquisition several years ago, we did like most do and put considerable effort into just closing the deal. We performed extensive due diligence, leveraging the expertise of our professional partners, as we strove to mitigate risk and reduce uncertainty while keeping our eyes on the time remaining on the deal clock. Findings from our due diligence were used to refine the final legal documentation and price, as well as to start formulating post-acquisition action plans. As we neared the transaction close, we did give thought to the communications and messaging needed for both internal and external stakeholders, but the communications work had been relegated to more of a side activity that was planned and implemented by the very people who were most fervently involved in the principal activities of due diligence and deal closing.
The ensuing communication resulted in some messaging being given out of sequence and even in incorrect messaging being delivered. This, in turn, created the need for additional communication. Minor stumbles and missteps were corrected, and in the end, the deal was closed, the integration started, and we went on to write the next chapters.
While the process went well, or well enough, our after-action review showed that our communications had gaps. We could have been more effective in our messaging if only we had developed a comprehensive communications plan and, equally important, had developed a playbook that meticulously stepped through the process, messaging, medium, stakeholders, responsible parties, timing, coordination, priorities, and more. What we found was that not every party had received the appropriate communication in the right order or with uniformly consistent messaging. As George Bernard Shaw wrote, “The single biggest problem with communication is the illusion that it has taken place.”
We were determined to do better for our next acquisition.
As we headed into signing the letter of intent for our next acquisition, we placed emphasis on identifying a communications team and establishing goals, parameters, and deliverables. Throughout the due diligence period, that communications team (which had some members, but not all, who overlapped with the core team running point on due diligence) worked to identify a panorama of stakeholders and a create comprehensive portfolio of messaging. This went far beyond the realm considered in our earlier acquisitions. For example, we looked beyond social media messaging to identify other digital assets that needed updating, such as Google Maps and links embedded on websites, and assigned who would do the updates, when, and with what information. For messaging, we went beyond writing talking points and reminded key participants of visual cues (body language), keeping consistent to brand (logos, fonts), and which medium was better for delivering which message (in-person, phone or video calls, email, posted mail). The communications work was done in partnership with the company being acquired, which saw this as yet another reason why we were the best choice for them as future co-owners.
Now, as we work toward an acquisition, we have a designated communications team. They work alongside the due diligence team to collect information, interview stakeholders, discover the communi-cation methods used by the business being acquired, catalog their social media and digital assets, and craft messages. A playbook is drawn up that identifies objectives, responsible parties, priorities, timing, and execution. The actual messages are written, prepared, and saved so that in the heat of the moment a previously identified responsible party can easily send the electronic messages, post the packages, and have a script, if necessary, for making the phone calls. Talking points are distributed, custom drafted for each targeted audience to ensure uniform messaging that stays on point. Collateral materials are developed and distributed to the locations where they will be needed so that they are ready to be disseminated at their intended time. Anything that requires planning and ordering is taken care of in advance to be sure that it will be ready and in place (catering for meetings, t-shirts with correct sizing to be handed out at announcements).
Our acquisition communication playbooks are 35 to 40 pages of relevant information, resources, definitions, photos of key personnel, contact information, resources, URLs, FAQs, press releases, sample emails, talking points, and more. We no longer relegate communications to be a side activity for those whose talents should be better focused on getting the deal done. Nor do we leave those who will be caught in the heat of the moment to be unprepared or to “wing it.” The result has been a marked improvement in the smooth transition from pre-acquisition fervor, to navigating the uncertainty of the important moment of announcing the acquisition, to writing the next chapter of integration.