Failing to have a strong and deep communication plan could spell trouble in M&A deals, according to J. Michael Marks, Indian River Consulting Group and co-host of the October Distribution M&A Executive Workshop, in Distribution M&A Playbook, pt. 2: The 8 Fatal Flaws in M&A.
"Good communication plans involve both the new owners and the existing management team," Marks said. "Give key stakeholders the opportunity to share concerns about the transaction and even around existing managers. One-on-one access must be provided, even if it is never used."
Communicating a new ownership team's values, intentions and planned actions is key to easing tensions and concerns for existing employees and management. Frequent informal visits to field locations should be built into the plan, while taking care to not undercut current management.
Read more tips for avoiding common M&A pitfalls in Distribution M&A Playbook, pt. 2: The 8 Fatal Flaws in M&A.
Join MDM and IRCG for the Distribution M&A Executive Workshop Oct. 9-11, 2017, in Austin, TX. Learn more at DistributionMAworkshop.com.
