News & Studies

5 Things You Can Learn About Crisis Communication in Failed Acquisitions in Just 5 Minutes:

1. How to protect long-term business relationships despite a failed acquisition.
2. Why proactive crisis scenario planning needs to begin right at the initial planning stage.
3. How transparent and authentic communication can prevent speculation and foster trust.
4. How targeted communication can effectively address employees, investors, and the media.
5. Which measures can demonstrate resilience following a terminated acquisition.

Whenever a company acquisition gets stalled, protecting the image of the company by using proactive and decisive communication becomes crucial for preserving long-term business relationships. Hence, one needs to be careful about the following factors:

1. Preparation is Key

During the planning phase, a comprehensive crisis communication plan needs to be drawn up that considers potential failure scenarios. These are provided by clear messaging that reinforces the company’s strategy and long-term sustainability. Media training of senior executives can also ensure clear communication with employees and journalists.

2. Transparency and Speed

Early and as transparent as possible communication can avoid gossip and speculation. Companies should reveal the reasons for the failed takeover as much as possible and take responsibility where necessary. Honesty is always the best policy. Overstatements, bluffing or evasive responses can damage the reputation in the long run.

3. Targeted Communication

• Employees: Internal communication has to be given first priority to minimize uncertainty and prevent rumors.
• External Stakeholders: Investors and customers require tailored information that provides clarity and conveys stability.
• Media: A correct and consistent press release ensures the creation of public opinion and prevents misinterpretation.

4. Communicating a Positive Future Outlook

Emphasize the company’s strategic vision, strengths, and flexibility. Outline specific operating and strategic moves that will stimulate future growth despite the unsuccessful takeover. Draw attention to what strategic steps the company will adopt in the future to demonstrate resilience and to gain trust.

5. Medien-Monitoring and Follow-up

Continuously monitor media coverage to address potential misunderstandings or misinformation. After the crisis, analyze the crisis communication plan to identify areas for improvement.

Conclusion

Potential failure in acquisition should be integrated into the communication plan from the start. Acting quickly, with an emphasis on the company’s strategic direction as well as underlying success, can restrict the adverse consequences of reputation and create resilience.

Assess whether your crisis communication strategy for failed acquisitions is already optimized by posing the following questions to yourself:

• Haben Sie für den Fall einer gescheiterten Übernahme bereits einen Krisenkommunikationsplan mit klaren Kernbotschaften erstellt?
• Gibt es einen festgelegten Ansprechpartner für Medienanfragen, der in der Krise geschult wurde?
• Sind für alle relevanten Zielgruppen spezifische Kommunikationsstrategien entwickelt worden?
• Verfügen Sie über ein Monitoring-System, um die mediale Berichterstattung gezielt zu analysieren und gegebenenfalls zu korrigieren?
• Haben Sie bereits Maßnahmen definiert, um nach einem Übernahme-Abbruch proaktiv über zukünftige strategische Pläne zu informieren?

Would you like assistance in answering these questions? We would be happy to help you with our expertise gained from over 25 years of investor relations. We support you in optimizing your communication strategy during the M&A process. Contact us using the contact form below or get in touch with Claudius Krause directly. You can find an overview of our services in our M&A fact sheet.