In the current M&A and deal tsunami that’s underway in the technology industry, deal cycles are seemingly getting shorter and valuations are getting bigger. Deals are fast forwarding due to accelerated digital transformation and a global pandemic that has profoundly -- and somewhat permanently -- altered a myriad of industries and shifted consumer habits for good. Because of the speed at which these deals are flying, the time to prepare communications plans is also getting condensed, and at a mission critical time.
In our discussions with founders and C-Suite executives who are in the middle of an acqui hire, all-stock offers or being on the receiving end of a majority investment, many of these leaders are so consumed with the final stages of negotiating and executing these transactions that they can give communications short shrift when they can least afford it. Or, as an acquisition target, they often believe they have little or no say in contributing to the communications strategy.
Here are four pro tips founders can act on now, to ensure they’re ready to seamlessly surf the wave, and not sink, when it comes to communications planning on the cusp of a transaction.
Build Communications Plans Now.
Leaders bake risk assessment into business plans and spend resources on insurance. They manage cash flow for uncertain climates like these. Founders should put similar effort into planning full blown communications strategies well in advance of a preliminary call with a bank or legal team. This should include airtight Q&As anticipating all the hard questions, appointing and prepping spokespersons and determining which advisors and employees are part of the core planning team and war room. And while you may not have unilateral decision-making power over the ultimate messages around your deal, you can and should have some input on how to disseminate those messages to your key stakeholders.
Be Serious About Confidentiality.
Those code words your bank and law firm assigned to you and the other company? Use them. Use them on every document and in every conversation. Keep your core team tight and on a need to know basis, for as long as you can. You’ll eventually need to brief your top team as they’ll likely be involved in due diligence. The more execs who are brought under the kimono exponentially increases the risk of leaks. And leaks can make a deal go pear-shaped.
Don’t Forget The Full Stakeholder Spectrum.
Great comms plans consider every constituent that a business touches, starting with employees. It’s not just the deal press release and the media. Plans should bake in the messages, timing and delivery for team members, board, investors, customers and vendors as well as media and industry influencers. Fully consider how you’ll deliver those messages as well. Do you have the correct set up for a global town hall for employees? Is it better to convey the news to key customers via phone or will an email work? How will those emails look if they get leaked to the press?
Keep the Timing Tight.
Transparency is a key ingredient for success in fast growth companies, but it’s hardly the time to give a play by play to your team weeks out from a deal’s closure. Timing of an all hands meeting should be set up to dovetail with all stakeholder communications. Briefing your team a day or two ahead of the announcement can lead to leaks that can throw a wrench into the deal.
So founders, if an exit is on the horizon, or even a possibility, now is the time to start prepping that communications plan, so you’ll emerge on the other end, set up for maximum success.
- Jeanne Meyer, Chief Client Officer