The Right Mix: An 8-Step Recipe for Successfully Marketing Your M&A

Considering a merger or acquisition? You’ll need the recipe for success.

All due respect to financial due diligence, cost accounting, compliance and operations (the meat and potatoes, if you will) – strategic marketing is the secret sauce in a successful M&A deal. Here’s why: effectively combining two cultures is critical – and often insufficiently addressed.

A well-crafted marketing and communications strategy, infused with a harmonious blend of clarity, reassurances and transparency, can help ensure a smooth transition for employees, consumers and your market.

At Mills, we work collaboratively with financial institutions through complex M&A transactions. Drawing on decades of experience, we help simplify the process while keeping the focus on positive outcomes for all stakeholders.

Follow this recipe to navigate an M&A effectively.

1. Identify Your Key Ingredients. 

In an M&A transaction, your key stakeholders fall into three categories:

• Employees

• Customers

• Market

​Each group has unique concerns and needs, and it’s essential to address them effectively. ​

• Employees: Divide them into Legacy Employees (those from the original institution) and New Employees (those joining from the acquired institution).​ Tailor your messaging to address their specific concerns.

• Customers: Similarly, segment your customers into Legacy Customers and New Customers. ​Communicate the benefits of the merger to both groups.

• Market: Use the merger as an opportunity to strengthen your competitive position and attract top talent. ​

2. Go Easy on the Spice. 

 

Mergers often bring uncertainty, and it’s crucial to address the emotional impact on all stakeholders to build trust.  

• New Employees: Reassure them by providing clear information about their roles and your institution’s vision.

• Legacy Employees: Acknowledge their concerns about increased workload and emphasize the long-term benefits of the merger.

• New Customers: Highlight the advantages of staying with the merged institution, such as improved services and expanded offerings.

• Legacy Customers: Communicate why the merger is beneficial for them and make sure that they still feel valued.

• Market: Position the merger as a strategic move to strengthen your institution’s value to customers and attract top talent. ​

3. Do This Before the Transaction … 

Preparation is key in a merger. Here are some essential steps to getting organized:

• Clean Up Data: Ensure your customer information is accurate and current to avoid confusion during the transition. ​

• Align Privacy Policies: Review and update privacy policies to ensure compliance and transparency.

• Develop a Communication Plan: Create a detailed timeline for announcements, customer outreach and employee updates. ​Include press releases, social media posts, website updates and direct mail campaigns.

• Prepare Mapping Packets: Provide customers with clear information about account changes, terms and conditions. ​Include welcome letters, FAQs and disclosure booklets. 

4. Blend the Buyer-Seller Voice for a Unified Perspective. 

Clear and proactive communication is the cornerstone of a successful merger. Here’s how to ensure your messaging hits the mark:

• Create a Joint Identity: Use joint (buyer-seller) branding, logos and digital tools to establish a cohesive image. ​

• Equip Employees: Provide training, FAQs and handouts to help employees confidently address customer inquiries. ​

• Answer Questions Before They’re Asked: Anticipate concerns and provide answers upfront. ​

5. Don’t Ignore the Recipe. 

A successful M&A deal isn’t just about completing the transaction – it’s about achieving key outcomes for all stakeholders:

• Employees: Provide certainty and build confidence in the new organization.

• Customers: Maintain service quality to ensure retention. ​

• Market: Position the merged/acquired entity as a stronger competitor to drive growth. ​

6. Follow Proven Methods. 

Over the years, we’ve learned key lessons that can make a big difference in an M&A transaction:

• Empathy is Key: Nobody loves change, but empathy paired with optimism can ease the transition. ​

• Staff Up: Ensure you have enough resources to handle the increased workload during the merger.

• Leverage Excitement: Use new branding and marketing materials to create a sense of excitement and momentum.

• Lead by Example: Have senior management actively involved in key transition moments to inspire confidence. ​

7. Share the Recipe. 

Your employees are your most valuable asset during a merger. Equip them with the tools they need to succeed:

• Training: Provide staff training sessions and materials to prepare employees for the transition. ​

• Resources: Create employee packets with FAQs, proof points and consumer interaction guides. ​

• Communication: Keep employees informed with regular updates from leadership. ​

8. Serve with Confidence. 

Your customers are the lifeblood of your business. Keeping their trust is essential. Here’s how:

• Welcome Letters: Send personalized letters to introduce the transition and explain its benefits. ​

• Account Mapping Information: Provide clear details about any changes to their accounts, including terms and conditions.

• FAQs: Anticipate questions and provide answers in a user-friendly format. ​

• Social Media Updates: Use social media to share updates and engage with customers. 

Bonus: Don’t Get Too Many Cooks in the Kitchen.

When it comes to M&A marketing, here are two key takeaways from our experience:

• This is not a democracy. While it’s important to listen to feedback, marketing decisions must align with the strategic goals of the deal. ​
• Small bites are better. Keep your communication clear, concise and focused.​ Overloading stakeholders with information can lead to confusion.

If you’re looking for the right M&A recipe for your next deal, we’re here to help!

Contact us to learn how we can support your communication and marketing strategy.