Make “Buy & Build” understandable
Buy & Build strategists face major communication challenges. It is well known that many takeovers fail. “Megadeals” in particular, such as Daimler/Chrysler and most recently Bayer/Monsanto, often fail to achieve their ambitious goals. Accordingly, the public is critical of many company acquisitions. There is a great need for explanations. If you follow a few basic rules, you can minimize communication risks.
First: Inform employees first
If a company is taken over, the employees often fear changes or even job loss. If you ask for answers to this question, you will cause anxiety and strain the motivation of your employees. Therefore: Inform employees first! Some of the buyer’s employees also fear for their jobs. They should therefore not forget the employees on the buyer’s side.
Second: Serving the media immediately afterwards
If the workforce is informed, employees can immediately disseminate the information. Then communicative ricochets threaten. If you want to avoid this, you must inform the media immediately afterwards. In addition to the classic media, you should also consider the social media. In this way you can communicate your strategic goals and set your own accents. If you don’t, you risk that pierced statements from angry employees or worried works councils will dominate the media echo.
Thirdly: Integrating all parties involved in a targeted manner
Companies operate in a network of different interests. Customers and suppliers must therefore also be informed. Politicians and authorities should also be involved.
If you follow these rules, you can successfully promote buy & build strategies.