The decision to buy another company or to sell is a major inflection point for a business owner. It is important to read in your marketing agency at the appropriate time because their participation will be key in retaining clients, keeping competitors at bay and communicating with external stakeholders what the future holds.
For me, the importance of this hit home when CH Robinson announced their purchase of Phoenix International, well before Position : Global had even been started. CH Robinson, a publicly traded company, made the announcement as the buyer, but there was zero coming from Phoenix, creating a vacuum for Phoenix’s customers and employees for competitors to pounce on and peel off talented people and valuable customers.
Business owners engaged on either side of this transaction are focused on the usual constellation of professionals and data – bankers, lawyers, accountants, etc. But what if I told you that what made that company attractive to buy or sell was the clients, people, brand capital and reputation…and ensuring that there are minimal hits or losses after the deal’s announcement was just as important as not overpaying or getting the maximum sale valuation?
Position : Global has worked with both buy-side and sell-side companies in an M&A transaction. For companies who have made the decision to seek a buyer, there is the work of creating a great brand and reputation online and on social media and within their market segment and key verticals. This process may begin months or years before an actual deal is consummated. For those in the market to purchase, they want to be equally as attractive to a suitor so if there is competition, they stand out as the best fit for the clients and employees and protect the previous owner’s post-sale compensation and payouts.
Don’t take our word for it – take it from Ron Lentz, Managing Partner at logistics industry M&A firm Logisyn Advisors:
“Our experience shows that the best results in an M&A transaction come from both buyer and seller experiencing the deal’s benefits. In order for that to happen, advance preparation, clear communication, internally and externally, and a solid integration plan are ultimately the key factors that lead to both companies continuing to thrive.
This is especially crucial in an earn-out structure, where a portion of the deal’s value is contingent on the success of the acquired company. Having a tenured and knowledgeable management team, retaining the quality and reputation of the brand, and providing confidence to current customers during the transition are imperative.”
Position : Global has prepared a checklist for companies who are looking to sell or buy that helps them prepare for that day when the news is finally announced to the world. Four of the things that companies should ensure are addressed are below:
- Have messages been prepared for employees, customers, vendors and agent partners?
- Are all the communication channels – website, social media, newsletters, press releases – primed with the announcement and a clear explanation of the transaction, the timeline and assurances of business continuity?
- Have the owners of both companies collaborated on messaging to both organizations’ clients to inform them of what the deal means?
- Is there a content and media strategy ready to deploy that could include interviews, paid placements and content calendar that welcomes new employees, shares news on post-sale milestones (combining offices, name changes, website redirects) and deliberately avoids catching anyone by surprise?
Nature abhors a vacuum, and going into a purchase or sale without a marketing plan to accompany the business integration plan is a recipe for trouble.
The right marketing strategy helps protect deal value and ensure a smooth closing. You’ve seen four key tips from our checklist—now access the full version to stay aligned throughout the process.
Fill out the form below to get the complete checklist, or contact us to discuss how we can support your transaction.
