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:
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.