M&A
Companies are bought and sold; stakes or business units are built up or divested. Transactions, whether the result of well-founded strategic processes or driven by necessity, have a lasting impact on a company’s reputation and that of its leadership team. Communication plays a critical role in ensuring the success of such initiatives: by building trust, creating transparency, and reducing uncertainty, from project inception through announcement, closing, and post-merger integration. It operates within a delicate balance between confidentiality and many initially unresolved questions on the one hand, and the high information needs of all stakeholders on the other.
The longer pre-deal discussions last, the greater the risk of leaks. Premature disclosure of incomplete information can jeopardize the process. Should an “intention to merge, buy, or sell” be communicated—and if so, how detailed should it be?
Every transaction must be perceived as meaningful. This requires clear, consistent core messages across all stakeholder groups.
Transaction announcements often come as a surprise. When can, should, or must key individuals be involved to ensure successful reception?
Public takeover bids are particularly demanding
For listed companies, the rules of takeover authorities and ad hoc disclosure requirements significantly increase complexity.
Anticipating media and capital market reception
On what ground will the announcement land? Who will shape public opinion? How can one prepare for expected criticism?
Personalised trust
Executives put their personal reputation behind a transaction. Who communicates this to which audiences?
Focus on internal communication
From the moment of announcement, internal, integrative communication is essential to make the transaction understandable for employees and to address uncertainties—including those concerning their personal future.
Empowering leadership
Line managers are key multipliers. They must be equipped with appropriate communication tools.
Addressing identity and culture
After the announcement, the question “Who are we going forward?” becomes central. Communication must quickly provide clarity on what will change—and what will remain.
For listed companies, the rules of takeover authorities and ad hoc disclosure requirements significantly increase complexity.
On what ground will the announcement land? Who will shape public opinion? How can one prepare for expected criticism?
Executives put their personal reputation behind a transaction. Who communicates this to which audiences?
From the moment of announcement, internal, integrative communication is essential to make the transaction understandable for employees and to address uncertainties—including those concerning their personal future.
Line managers are key multipliers. They must be equipped with appropriate communication tools.
After the announcement, the question “Who are we going forward?” becomes central. Communication must quickly provide clarity on what will change—and what will remain.
Experience and Insights
Public Takeover Offers: Capital markets and media typically assess public takeover bids along five key dimensions:
1. Price and premium
The offer price sets the initial benchmark for market evaluation. However, it can only be justified by the underlying value creation potential (synergies, earnings, economies of scale).
2. Strategic logic and fit
The industrial or financial rationale of the transaction must be immediately compelling.
3. Credibility and track record
The buyer’s reputation and history strongly influence how the transaction is perceived.
4. Transparency and handling of uncertainty
Open issues and assumptions are closely scrutinised and interpreted by the market.
5. Timing
The announcement day—typically the day after signing the transaction agreement—shapes overall perception. First impressions matter.
Depending on whether the buyer is a private equity firm or a strategic investor, stakeholder concerns differ:
| Stakeholder | Relevant for all buyer types | Strategic buyer | Private equity |
|---|---|---|---|
| Employees | Job security, culture, leadership and participation | Fear of corporate structures, bureaucracy, site closures | Fear of cost-cutting, short-term focus, exit |
| Customers | Quality, continuity, reliability | Concern about standardisation, pricing changes | Concern about reduced service, margin focus |
| Partner/Suppliers | Contract stability, power dynamics | Fear of increased purchasing pressure | Fear of renegotiation and optimisation |
| Public | Job preservation, regional responsibility Regionale Verantwortung | Takeover by a large corporation” | „Heuschrecken“ narrative |
Relevant insights
Further reading from IRF experts on M&A and capital market communication:
A comprehensive guide to life as a listed company, including M&A topics. Written by an IRF partner.
What can be learned from the mistakes of others? Our expert provides an overview of enforcement practices by Swiss Exchange Regulation in the field of ad hoc disclosure - including M&A cases - and summarises the origins, objectives, and implementation of the directive.
