Don’t Let a Lack of Communication Destroy a Deal

Blog by Ben Greenberg, VP of Corporate Development at IT Solutions
If you’re considering M&A initiatives or navigating the challenges of growing your MSP, we invite you to explore our M&A resources.

Ensuring a Smooth Transition for Clients and Employees

Effective communication is one of the most critical aspects of a successful acquisition and subsequent integration. Properly planned and intentionally executed communication strategies can significantly ease the transition, helping to retain both clients and employees while setting the stage for future success.

Communication Planning

Effective communication doesn’t happen spontaneously; it requires meticulous planning. Communication strategies should be developed well in advance of signing definitive agreements. A day-by-day game plan should outline when communication will happen, who will deliver the messages, who will prepare the content, and what the key messages will be.

This structured approach ensures that all stakeholders are appropriately informed throughout the integration process. Remember, employees and clients did not ask for this; they will undoubtedly have questions and want to know what this means for them on an individual level.

Communicating with Employees

In a services business, employees are the lifeblood of the organization. Their engagement and morale can significantly impact the success of the acquisition and, ultimately, the broader business outlook. Therefore, it is crucial to prioritize communication with employees, both from the acquired and acquiring company.

Key Communications for Employees

1. Kick-off Event:
   A kick-off event for the announcement sets the stage, enabling senior executives to share excitement about the acquisition while being transparent about potential changes. Setting clear expectations is crucial to help employees understand what to expect and how they can contribute to the integration process.
2. Detailed FAQ and Open Door Sessions:
   Following the kick-off event, it is helpful to provide a detailed FAQ document addressing common concerns. Additionally, hosting “open door sessions” in the following months allows employees to ask questions and express their concerns in a supportive, two-way environment.
3. Continuous Two-Way Communication:
   This means not only providing regular updates but also seeking employee feedback through channels such as surveys, town halls, peer support groups, or feedback sessions. The goal is to ensure employees feel heard and that their concerns are addressed. When employees see their feedback leading to actionable changes or improvements, it fosters trust, boosts morale, and builds a sense of shared ownership in the integration process.
4. Communicating with the Acquiring Company’s Employees:
   Communicating with the acquiring company’s employees is equally important. They need to understand the intent of the acquisition, the next steps, and the integration plan. Providing opportunities for two-way communication ensures that they are also engaged and supportive of the acquisition process.

Communicating with Clients

Clients are another critical stakeholder group. Their continued trust and satisfaction are paramount to the acquisition’s success. Effective communication can help alleviate concerns and demonstrate the value of the acquisition.

Key Communications for Clients

1. Pre-Close Communication:
   For some clients, it may be beneficial to communicate before the acquisition closes. This serves as both a diligence matter and an opportunity to meet clients ahead of time to discuss the future and build rapport.

2. Post-Close Touchpoints:
   After the acquisition is finalized, each client should be contacted. Additionally, consider which clients should have leadership from the acquiring company involved in these communications to reinforce the commitment to client satisfaction. Segmenting clients into categories can help tailor the communication approach. For example:

• • Clients who need individual face-to-face interaction in week one: These clients may have significant concerns or be critical to future business. Personal interactions can help build trust and address any immediate questions.
  • Clients who need virtual meetings or phone calls: These clients may not require in-person meetings but still benefit from personal touchpoints to discuss the acquisition’s implications.
  • Clients who are okay with email communication: For clients with fewer concerns or lower impact, detailed and reassuring emails can suffice to inform them about the acquisition and next steps.

3. Client Open House:
   A client open house event several weeks or months after the announcement can be an excellent way to showcase the benefits of the acquisition and maintain a feeling of local intimacy. This event provides an opportunity for clients to meet the new leadership, ask questions, and experience the value the acquisition brings.

Other Considerations

Stakeholders such as vendors, partners, and the wider community are integral to the success of an acquisition.

For vendors and clients, it is crucial to review the deal structure and individual agreements during due diligence to determine if consent or billing changes are required. For obvious reasons, it’s imperative to abide by legal agreement obligations and take this into consideration as part of the overall communication plan.

Additionally, tailored messaging can go a long way in terms of relatability and bridging initial gaps, especially when expanding into different regions or acquiring a highly verticalized client base. This includes understanding regional communication styles and aligning messages with what is most valued by the specific client or vendor profiles. Adapting communications not only fosters trust but also strengthens relationships across diverse markets.

A well-crafted press release is another essential element to ensure clear and consistent messaging surrounding the acquisition. This not only informs stakeholders and the broader public but also reassures them by promoting a unified, positive message that highlights the strategic intent and benefits of the acquisition.

Utilizing social media and both companies’ websites can further streamline and reinforce the communication process. Regular updates on these platforms ensure that all stakeholders receive consistent information, reducing confusion and speculation. This proactive approach also demonstrates transparency and commitment to the combined communities.

Final Thoughts

The success of an acquisition & corresponding integration is heavily reliant on effective communication. By planning and executing a thoughtful and comprehensive communication strategy, MSPs can ensure a smoother transition and build trust with key stakeholders. Don’t underestimate the amount of planning and time that goes into the communication plan—it’s a critical step that should not be taken lightly.

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Unlocking growth through M&A comes with unique opportunities and challenges. Whether planning your next acquisition or considering selling your business, we’re here to help your MSP thrive.