On strategic communication during mergers & acquisitions: a pragmatic perspective to improve outcomes

Abstract

PurposeMergers are an increasingly popular method to grow a business despite the fact that many fail to meet their pre-deal expectations. This paper outlines the benefits, and argues in favor, of managerial commitment to a well-defined, strategic communications plan from inception through completion of an organizational merger. The authors propose training leaders in areas such as cultural communication, crisis communication, and shared governance prior to developing an M&A-specific communication plan.Design/methodology/approachThis article is primarily an integrative theoretical piece, drawing on prior literature and secondary research sources while also integrating the authors’ academic and industry experience to offer best-practices for enhancing organizational communication efforts pre- and during mergers and acquisitions.FindingsThere are many financial and structural issues that can result in a failed merger. However, even when a deal makes sense financially M&A’s still have a relatively low success rate. These failures are often people related. Two significant issues are presented; culture conflicts related to communication, and uncertainty of a changing environment. Communication is the key to a successful M&A. If effective communication is deployed pre-M&A and during integration, it can greatly reduce the chance of failure.Originality/valueThis report offers a novel approach to decreasing the likelihood of M&A failure, focusing specifically on people-specific causes of hindrance. It outlines two of the significant human-related issues; culture conflicts and uncertainty reduction, both as related to organizational communication.