m&a communications: better strategy. better actions. better outcomes

1 Mertz Associates, Inc.

M&A Communications: Better Strategy.

Better Actions. Better Outcomes

Presenters: Mary Scheibel ─ Principal, Scheibel HalaskaLinda Mertz ─ Managing Director, Mertz Associates, Inc.

October 12, 2010

Mertz Associates, Inc.

M& A Communications

Mary Scheibel Linda MertzPrincipal Managing DirectorScheibel Halaska Mertz Associates, Inc.

Connecting with your Audience to Achieve Better Outcomes


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Agenda

Communications is a crucial component of successful Mergers and Acquisitions.

Today our goal is to present

• Challenges

• Solutions

• Case Studies

• Answers to your questions


The Challenge

• The large majority of mergers / acquisitions are disappointing or outright failures.

• M&A activity is expected to increase as more CEO’s use M&A strategies to grow or exit their businesses.


Am I Insane?

“The definition of insanity is doing the same thing over and over again and expecting different results.”

-Albert Einstein


Role of Communications

What role can communications play in producing more

successful M&A outcomes?


It’s All About ME!

In the end, everyone cares about the same thing.

It’s all about Me

EmployeesWho stays?

Who goes?

Who’s on top?

Where am I?

CustomersIs your attention still on me?

Who is the company now ?

How does this benefit me?

Am I still important?

CommunityDoes the company still care about us?

Will they move away?

Will the jobs leave?

SuppliersDoes this help me?

Who am I competing against now?

How can I get their fair share?


What’s in it for me?

• It is crucial to create an emotional connection between the company and its constituents.

• “Don’t tell me what’s happening, tell me what’s happening TO ME.”


The Emotional Connection

How can you connect on an emotional level?

• Make the message QUICK

• Make the message RELEVANT

• Make the message MEMORABLE

Lesson Learned:

Make sure your employees are well-informed and equipped to take the right messages out.


New Rules of Engagement #1

Communicate Often.

• You can’t over-communicate, but you can over-inform.

Information

vs.

Communication

• Avoid too much emphasis on the transaction. Instead, focus on the possibilities it presents.



Be Honest.

• If you don’t know, you don’t know. When will you know?

• Don’t try hiding. You can’t. News travels fast and makes its own path.

Lesson Learned:

If you don’t tell your own story, your competitors will be glad to tell their version of it for you.



Tell your own story.

• If you don’t tell your own story, no one else will tell the story you want told.

• Use the press wisely, but don’t count on them. They have a different agenda.

• Take advantage of new ways to generate your own content.• Website• Outbound E-marketing• Social Media



Wishing and Waiting are not strategies.

• Top integration risk factors:• Slow decision making• The pressure of addressing too many issues at the same time.

• You know your story, or at least the majority of it, long before the transaction.

• Develop plans and narratives out front.• It’s the story of the future.• It’s the story of your vision.• It’s not details about the deal.


That’s My Story…

…and I’m Sticking to It.

•Create a singular message that’s relevant to all of your audiences, and use it to launch and cap all communications.

•Make the complex simple, not the simple more complex.

•Connect to your audiences on an emotional level.


What is your story?

Ask yourself these key questions:

• How does this acquisition increase value?

• What makes me better at taking care of my customers than anyone else?

• What is the future we are committed to producing together?

• Why should anyone want to hitch their wagon to my star?


Identify your Brand Strategy

If you’re confused, imagine what the marketplace thinks.


Brand Complexity

Brand Relationship Spectrum

Branded House

Sub-Brands

Endorsed Brands

House of Brands

HP LaserJet

All products carry GE name

The “LaserJet” is a name of a

product that is ‘equal’ with HP

‘Marriott’ plays a lesser role than

CourtYard

P&G is not represented


Putting it into Practice

Good Communications Can Happen.

• Multi-million equipment manufacturer filed bankruptcy in March ’09, followed by asset acquisition by a PE firm.

Lesson Learned:

A good communications strategy and execution can help you navigate even the most difficult waters.



“Making a genuine impact”• All messaging reinforced company’s commitment to “making a

genuine impact” past – present – future.

• 3,000 people globally heard the story simultaneously only minutes after filing.

• Company maintained supplier support, customer loyalty and employee commitment throughout the process.

• All business units globally are profitable, and profits are being reinvested in the business.

• Company is reestablishing global leadership position demonstrating its ability to continue making a genuine impact for manufacturers today – and tomorrow.



Plastics News, March 2009

Plastics News, September 2010


Summary

Strategy, Strategy, Strategy!

• Good communications all tie to your strategy.

• Create a singular message that’s relevant to all of your audiences and connects on an emotional level.

• Recognize your audience is all concerned about “me.”

• Make your message quick, relevant and memorable.

• Communicate often, be honest & tell your own story.


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Contact Us

Mertz Associates Inc.

• Buying • Selling • Divestitures • M&A Negotiations

Linda Mertz

(262) 523-4200

Scheibel Halaska

• Strategic Marketing• Global Communications• Brand Positioning• Public Relations

Mary Scheibel

(414) 270-3513

m&a communications: better strategy. better actions. better outcomes

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