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Strategic M&A communications

When it comes to mergers and acquisitions, clear, strategic M&A communications play a decisive role in the success of the transaction – while preventing potential disruptions.

A clear, compelling presentation of the strategic reasons for the merger or acquisition helps shareholders, investors and employees understand the plan and develop confidence in it. This goes a long way towards preventing the transaction from being jeopardised by misunderstandings or becoming the subject of unnecessary public discussion.

Professional M&A communication ensures the loyalty and commitment of a company's employees. It counteracts uncertainty with transparent statements and aims to significantly reduce concerns, scepticism or resistance.

At the same time, M&A communication ensures that customer trust is maintained. It highlights the opportunities arising from the merger or acquisition and demonstrates how low the risks are. This is extremely beneficial to the transaction.

It also pays special attention to investors and the share price. Targeted M&A communication brings investors and analysts on board and minimises negative effects on the financial well-being and share price of the company to the greatest extent possible.

Last but not least, a clear, consistent M&A communication strategy helps overcome typical challenges that arise in the context of mergers and acquisitions – whether financial, legal or operational. Professional communication that provides information in a concise manner also plays a key role in avoiding risks arising from misunderstandings and misinterpretations.

Strategic M&A communication calls for partners who can guide the process with in-depth expertise, the utmost integrity and a great deal of empathy. At Ruess Group, we are happy to take on this role – after all, sustainable, secure growth processes are one of our areas of expertise as an M&A agency.

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Angela Kunwald Managing Director at Ruess International

Angela Kunwald

Managing Director

M&As – a strategic lever for corporate success

M&As secure long-term growth and competitiveness because they offer several strategic advantages and opportunities.

  • Growth

    M&As are an effective tool for companies to rapidly expand their market position and secure strategically relevant resources. The acquisition expands the portfolio, opens up new customer groups, and benefits from considerable synergies and economies of scale.

  • Diversification

    M&As are a significant factor in portfolio diversification. They enable companies to quickly enter new business areas, markets and technologies without having to develop them organically. This reduced risks and fluctuations in one or more business areas can be offset by the newly acquired business areas.

  • Synergy

    One of the most important goals of M&As is the anticipated synergy effects. The merger enables resources to be rationalised, thereby increasing profitability and efficiency.

  • Market entry

    M&As enable companies to enter new and, in particular, global markets more quickly. This saves time and resources that would otherwise be required to build up their own presence from scratch. This is especially attractive for new sales markets, which are critical for new growth.

  • Innovation

    Especially in industries where competition is driven by rapid technological change, acquiring start-ups or technology companies provides access to innovative products and services that strengthen digital competitiveness.

  • Brand strengthening

    The acquisition of a well-known company or an established brand with a loyal customer base improves the acquirer's brand strength and strengthens customer loyalty. These are two factors that deliver very significant competitive advantages in both the short and long term.

  • Capital

    M&As are an extremely efficient way to raise capital and secure financing. The capital and creditworthiness of the acquired company can be used to finance the acquirer's growth.

  • Share price

    Successful M&As typically increase the share price and enhance the value of the company for shareholders and investors. This is an important factor, as a company should always strive to drive shareholder value forward and maximise it.

  • Competitive advantages

    M&As enable companies to secure significant competitive advantages, expand their market position, pool resources and generally enhance their capabilities. All this, to expand their position in a globalised business environment.

  • Crisis management

    Especially in tough economic times, M&As offer a way out of financial trouble. Merging with another company can restore financial stability and open up strategic opportunities to adapt to changing markets.

Strategic planning and risk minimisation

M&As are among the most important strategic options available to a company to accelerate growth, increase competitiveness and build on its success. However, they always involve a certain degree of risk.

The strategic planning of a merger is a critical process for both companies involved in the transaction. It is important to plan and communicate strategically with experienced professionals in order to maximise the benefits and minimise the risks.

The strategic planning of a merger or acquisition begins with the definition of the business objectives: What added value is the transaction intended to create? Is the objective to accelerate growth? Acquire new technologies? Is the transaction aimed at diversifying into new markets? Achieving economies of scale? Is it about operational synergies? All of this needs to be based on thorough market research and a meticulous assessment of the strategic fit and financial potential.

At the same time, thorough due diligence needs to be carried out. This includes a comprehensive assessment of the financial health, legal obligations and operational performance of the acquisition candidate. This is especially important in order to identify hidden risks and ensure that the process is conducted on a solid foundation.

The valuation of the target company and the determination of a suitable purchase price rank among the most critical steps in the M&A process. An excessive purchase price can result in significant financial burdens, while an undervaluation can jeopardise the transaction and undermine shareholder confidence.

Equally decisive is the careful integration of the target company into existing structures. This involves systematically realising identified synergy potential, efficiently merging operational processes and actively addressing cultural differences.

Transparent, consistent M&A communication significantly supports this process by keeping all stakeholders informed, creating acceptance and laying the foundation for sustainable transaction success.

A few risks at a glance

  • Cultural differences

    If the corporate cultures of the buyer and the target company are only slightly compatible or incompatible, cultural conflicts and employee dissatisfaction can hinder successful integration.

  • Financial risks

    M&As can entail considerable financial risks if the transaction leads to high levels of debt or if the desired synergy benefits cannot be realised.

  • Legal risks

    M&As involve numerous legal risks. The most important of these include breach of contract, liability issues and various regulatory challenges.

  • Operative risks

    The integration of two companies often presents operational challenges. These include technical difficulties, logistical problems or interruptions in business operations.

  • Resistance

    Shareholders, employees, customers and suppliers may oppose the M&A transactions. Such resistance could jeopardise the transaction or at least require significant adjustments.

  • Reputational damage

    If an M&A transaction is unsuccessful or is associated with negative headlines, it can cause lasting damage to the reputation of the companies involved. However, the most significant problems usually arise from excessive reactions to such developments. An experienced M&A agency with professional crisis communication skills can prevent a great deal of damage in this regard.

  • Strategic risk

    An excessive focus on M&As as a basic growth strategy can make a company vulnerable to market and industry risks. This is also because this approach leaves other strategies untapped.

  • Destruction of value

    If the expected synergy effects are not realised or the purchase price is excessively high, the transaction can, in extreme cases, lead to a destruction of value.

  • Loss of time and resources

    M&A transactions require significant time and resources for planning, due diligence, negotiations and integration. If a transaction fails, these resources may have been wasted.

  • Political and regulatory risks

    Political developments and regulatory changes can influence M&A transactions, create uncertainty and lead to the failure of the transaction.

Communication planning

for M&A communication

An experienced M&A agency plans and develops customised communication strategies that professionally accompany all phases of the transaction. The objective is to make the strategic motivation behind the transaction visible and comprehensible to all stakeholders with a consistent narrative.

A precisely timed communication plan tailored to the transaction schedule minimises uncertainty, anticipates potential escalation scenarios and promotes trust.

Internal communication

Employees are among the key stakeholders in an M&A transaction. They should be informed about the planned merger or acquisition as early as possible – and in a way that is transparent and structured. This should include clear messages about the reasons and objectives and the specific implications for jobs, responsibilities and processes.

Ongoing internal communication ensures that employees have the opportunity to ask questions, express concerns and contribute their own ideas.

Management and executives play a key role as multipliers in this process. They have to understand the strategic reasons and goals of the transaction so they can communicate them credibly to the teams.

Special attention should also be paid to cultural integration and communicating shared values. Targeted communication about the corporate culture helps people identify with the new organisation and makes the transition to a shared future easier.

External communication

Investors and shareholders are among the key external stakeholder target groups for M&A communication. They expect timely, consistent information on the progress of the transaction, the financial implications and the mid- and long-term value potential. A rigorous, transparent approach is essential to build trust and secure the support of these groups.

Proactive communication also needs to address customers and suppliers, inform them about possible changes in business relationships and highlight the continuity of services and supply chains. It should clearly assure them that existing agreements and service commitments will remain in place after the transaction.

Another key component is dealing with the media. Precisely coordinated core messages have to be formulated to ensure objective, fact-based reporting. Professional media relations play a decisive role in countering speculation and creating a positive public perception.

Last but not least, stakeholder dialogue with regulatory and supervisory authorities also calls for a high degree of care. Communication should be professional, cooperative, legally compliant and transparent at all times in order to document compliance with all regulatory requirements and efficiently support the necessary approval processes.

Step by step to targeted M&A communication

  • Early planning

    In the M&A process, the communication strategy needs to be planned from the outset to allow sufficient time for preparation and a realistic identification of challenges and risks.

  • Development of clear messages

    The messages formulated need to be clear and understandable. They need to highlight the strategic reasons for the transaction, its strategic objectives and the benefits, and be consistent both internally and externally.

  • Communication timing

    The timing of communications needs to be carefully aligned with the transaction schedule to prevent potential escalation scenarios, share the right information at the right time, and avoid confusion and resistance.

  • Selection of communication channels

    To ensure that messages are received, the choice of communication channels needs to be based on the information and media usage behaviour of the respective target groups.

  • Assembling a team

    M&A communication should be handled by an experienced communication team with the necessary skills and resources to implement the strategy effectively. In this context, an M&A agency specialising in M&A communication and crisis communication is a valuable partner because it always maintains an independent outside perspective and greatly increases process reliability.

  • Feedback and adaptation

    The communications team has to be able to respond to feedback and changes. To this end, continuous monitoring and adaptation are essential to ensure that communication works.

  • Preparing crisis communications

    A crisis communications strategy should always be developed in advance so that you are prepared for any problems or challenges and can deal with them effectively if and when they arise.

Expertise is everything

The professional planning, implementation and management of M&A communications requires the methodological expertise, industry knowledge and strategic vision of an M&A agency:

M&A expertise

A thorough knowledge of the M&A process is essential. To this end, the communications team – from due diligence to negotiations and financial and legal aspects to integration – should have in-depth understanding of the various phases of M&A transactions.

Communications strategy

Experienced communication strategists at an M&A agency are well versed in the specific dynamics of the M&A process. They ensure that all communication measures are closely aligned with the overarching corporate goals and in line with the transaction schedule. Each transaction has its own specific objectives and addresses different interest groups. Only with a strategically thought-out approach to M&A communications can consistent messages be developed that persuasively convey the economic added value and cultural integration. This is how the strategists at the M&A agency ensure that trust, acceptance and confidence are systematically built up among all stakeholders.

Crisis communications

M&A transactions often attract a great deal of public attention, from rumours and information leaks to resistance from employees or critical media reports. M&A communications should therefore always include a crisis communications plan as a preventive measure. This ensures that stakeholders can be communicated with quickly, in a way that is coordinated and credible in the event of an emergency. Effective crisis communication can mitigate escalations, clear up misunderstandings and protect the company's reputation.

In addition to quick thinking, this above all requires the ability to act calmly and consistently under pressure.

Internal communication

Successful internal communication requires, first and foremost, the ability to consistently put oneself in the shoes of internal target groups and to identify their expectations, questions and potential reservations at an early stage. It calls for sensitivity in dealing with cultural differences and individual concerns. When messages build trust, provide guidance and express respect for the workforce, a climate can be created in which employees feel well informed and motivated.

External communication

The ability to effectively communicate with external stakeholders such as investors, customers and suppliers is also one of the key factors. This is especially important when developing communication messages aimed at building trust among different target groups.

Media relations

In-depth experience in media relations is also essential. A robust network and personal contacts with relevant business, financial and trade media provide the foundation for ensuring objective, constructive reporting. Regular, professional and committed dialogue with media representatives is essential for assessing information at an early stage and actively preventing potential misjudgements.

Strategic media relations can be used to shape public perception of the transaction and strengthen the company's reputation in the long term.

Legal and regulatory knowledge

An understanding of the legal and regulatory requirements for M&As is also part of the job description. The M&A agency should always be able to ensure that all measures and activities comply with applicable laws and regulations.

Specific industry knowledge

The requirements for M&A communication can vary depending on the industry or sector. The consultancy needs to have specific industry knowledge to understand and positively address needs and challenges.

Project management

The ability to effectively organise and manage communication projects is also critical to success. This includes setting goals, allocating resources, monitoring progress and ensuring that deadlines are met.

Analysis and measurement

An M&A agency needs to be able to measure and analyse the success of its communication strategy. This includes tracking key figures, evaluating feedback and adjusting the strategy if the situation requires it.

Change management

M&A transactions usually lead to changes in corporate culture and work processes. The M&A agency needs to have expertise in change management to ensure that doubts and uncertainties do not lead to resistance.

Flexibility and adaptability

M&A transactions can take unpredictable turns at any time. It is therefore important that the advice provided is flexible and adaptable at all times so that it can respond to changing circumstances and challenges.

Creativity and innovation

The consulting team needs to be able to come up with creative ideas to get the message and story across effectively. Innovative communication approaches help get the message across more effectively and spark the interest of the target groups.

In short, a successful M&A deal depends on a multitude of factors

The success of an M&A agency is the result of many factors and strategic approaches. One of the key components is undoubtedly the expertise and experience of the team, who are familiar with the complex aspects of mergers and acquisitions.

M&A consulting needs to develop a clear communication strategy that is aligned with the individual goals and interests of all stakeholders. This alone requires a deep understanding of the industries and markets involved.

It is also essential to identify the various target groups and understand their specific needs and concerns. This enables the M&A agency to develop targeted and effective communication that is perfectly tailored to the respective interests.

Clear and transparent communication is another key factor. To this end, the advice provided by an M&A agency should ensure that all relevant information is presented in a clear and open manner, both internally and externally. This helps gain the trust of stakeholders and minimise potential uncertainties.

An established network and good, long-standing relationships with relevant partners such as media representatives, politicians, the public and regulatory authorities are also of great benefit. This enables smooth collaboration and ensures that information is placed where and when it needs to be.

We at the Ruess Group can make this happen. And we haven't just been doing it for a day or two – we've been doing it for close to 20 years. M&A communications for names that are already well known and those that are currently preparing to step into the spotlight.