Your Roadmap to Successful M&A Internal Communications
- Establish a clear M&A communication timeline: Define key phases, milestones, and communication checkpoints to ensure employees stay informed and feel supported throughout the transition.
- Create a structured communication strategy: Align leadership, HR, and internal communications teams around shared goals, audiences, messaging priorities, and the best channels to reach every group effectively. Outline when and how to deliver critical messages to maintain transparency and trust.
- Leverage internal communication software: Use advanced platforms to segment audiences, deliver timely updates, automate key messages, track engagement, and personalize the experience across offices, regions, and remote teams. Track engagement, and personalize communication at scale.
- Ensure leadership visibility and responsiveness: Keep employees connected, reduce uncertainty, and foster two-way conversations.
- Build flexibility into your communication plans: Anticipate the unexpected by creating adaptable messaging templates, feedback loops, and contingency plans to respond quickly to changes in the merger process.
Mergers and acquisitions are identified as the largest and most consequential investments companies make. However, this doesn’t necessarily make them financially successful. More than a decade ago, in 2011, Harvard Business School found that between 70% and 90% of M&As fail. More than a decade later, two accounting professors published a handbook, The M&A Failure Trap: Why Most Mergers and Acquisitions Fail and How the Few Succeed.
Table of contents
- Your Roadmap to Successful M&A Internal Communications
- Why Employee Communication Matters During Mergers and Acquisitions
- Understanding Employee Concerns During a Merger
- M&A Communications Timeline
- Creating an M&A Communication Strategy
- The Role of IC Software in M&A Communications
- What Makes M&A Communications Successful?
- What’s Next?
- FAQ
Baruch Lev, Professor of Accounting and Finance at NYU Stern School of Business, and Feng Gu, Associate Professor at the University at Buffalo, studied 40,000 acquisitions over a four-decade period and found that the overall failure rate of M&As was 70%-75% at best!
These statistics make it clear why effectively managing employee concerns during a merger is crucial. It ensures a smooth transition and maintains a productive workforce. They also indicate that the outlook for M&A success has not improved.
“You surely heard about mergers and acquisitions (M&A) — the largest and most consequential investments companies make. But you weren’t aware that most of them (70–75%) fail to meet expectations, and it’s getting worse. You should be aware of this destructive phenomenon, its wide-ranging adverse consequences, and the ways to avoid it.”
Lev and Gu, The M&A Failure Trap
In this blog post, we are going to explore the importance of internal communications and highlight how the right software platform can be a valuable tool to facilitate M&A communications and implement a well-structured M&A communication plan.
Why Employee Communication Matters During Mergers and Acquisitions
Effective employee communication is a cornerstone of any successful merger or acquisition. As we have illustrated, recent research highlights that communication missteps can contribute to the high failure rates of M&A transactions. This underscores the need for clear, consistent, and transparent communication strategies to ensure employees remain engaged, informed, and aligned with organizational changes. Additionally, cultural integration — often neglected in M&A planning — plays a significant role in the overall success of the deal. Research shows that poor communication during cultural transitions can exacerbate employee anxiety, reduce morale, and hinder long-term success.
To mitigate these risks, industry leaders emphasize that frequent updates, clear messaging, and addressing employee concerns head-on are critical. Whether through structured communication plans, utilizing the right tools, or fostering open dialogue, strategic communication can facilitate smoother integrations, safeguard employee trust, and ultimately drive the desired business outcomes.
David Olsson, Managing Director at the Institute for Mergers, Acquisitions & Alliances (IMAA), emphasizes that early and consistent communication helps prevent misinformation, reduce employee anxiety, and maintain morale. In a February 2025 IMAA post, How to Handle Internal Communications During a Merger, he emphasizes how articulating the strategic purpose behind the deal, addressing employee concerns upfront, and providing continuous updates are essential steps early on, all help to ensure a smooth transition.
Understanding Employee Concerns During a Merger
Mergers and acquisitions often introduce significant uncertainty among employees, leading to concerns about job security, changes in roles, and the future direction of the company. A 2024 study by WTW found that 72% of companies implement retention strategies to address these concerns, highlighting the importance of proactive communication and support during such transitions.
According to Josephine Gartrell, Senior Director of WTW’s Executive Compensation and Board Advisory. “Shoring up key executives and employees is important to a successful merger or acquisition.”
“To that end, retention agreements play a critical role in keeping talent at target companies both during and after the transaction. The challenge is how to structure retention agreements and determine which executives and employees at the acquired companies should be offered them.”
Josephine Gartrell
According to Fidelity Investments, research also indicates that nearly 50% of healthcare workers reconsider their employment following an M&A, with only 20% feeling fully supported during the process. This underscores the critical need for organizations to provide clear, consistent, and empathetic communication to maintain employee trust and morale.
Furthermore, a 2024 study by McKinsey emphasizes that effective people management, including transparent communication and addressing employee concerns, is key to sustaining momentum and reducing burnout during M&A delays. Leading through uncertainty: Navigating delays in M&A deals, states, “Over the past two years, delays have plagued 30% of major acquisitions. To avoid destroying value, momentum, and morale, dealmakers need a plan that anticipates likely delays and prepares for contingencies.”
By acknowledging uncertainties and providing support, companies can navigate the complexities of M&As more successfully.
M&A Communications Timeline
Establishing a clear and structured M&A communications timeline is essential to address employee concerns and ensure a smooth transition. By proactively planning communication at each stage of the merger or acquisition, organizations can minimize uncertainty and maintain employee engagement.
A well-defined timeline allows for timely updates, transparent messaging, and the opportunity to address questions and concerns as they arise. This approach helps to build trust, alleviate anxiety, and foster a sense of stability among employees during the transition period.
Moreover, aligning the communication timeline with key milestones in the M&A process is the best way to ensure that employees are informed and prepared for upcoming changes. This will also reduce the potential for disruption and enhance the overall success of the integration.
Incorporating feedback mechanisms throughout a well-thought-out timeline also enables organizations to gauge employee sentiment and make necessary adjustments to the communication strategy, further supporting a positive and productive transition.
So, let’s take a closer look at how an M&A communication plan can assist in managing employee concerns during a merger or acquisition.
Step 1: Prepare for the Merger Announcement
An effective M&A communication plan starts before the merger is announced. Internal communication software can be used to prepare employees for upcoming changes. It provides context and ensures they receive news from the company before it becomes public knowledge.
Before initiating the M&A communication timeline, gather all relevant details about the merger and acquisition. Understand the reasons behind the deal, the anticipated benefits, and the potential impact on employees. It’s important that your employees understand how these details affect them and their role within the organization.
Step 2: Segment M&A Communications
It is vital to segment employees into different stakeholder groups based on their roles, departments, and levels within the organization. Common groups may include management, individual contributors, HR, and support staff. Craft tailored messages for each stakeholder group. Address their specific concerns, highlight the benefits they can expect from the merger, and be transparent about any potential changes or employee concerns during a merger.
Select appropriate communication channels for each message. Consider using a combination of town hall meetings, email updates, intranet announcements, and one-on-one meetings where necessary. Outline when and how each message will be delivered. Ensure that the timing aligns with key milestones in the merger and acquisition process.
Step 3: Integration and Onboarding Information
Communicate the new organizational structure resulting from the merger. Explain any changes in your M&A communications like reporting lines, roles, or responsibilities. Offer clarity on how the integration will unfold. Emphasize the values and culture that both companies share. Highlight how the combined organization will work together to achieve common goals.
If new employees join as part of the acquisition, provide a comprehensive onboarding plan. Ensure that new employees feel welcomed and supported during their transition. Create channels (e.g., feedback surveys and Q&A sessions) for employees to voice their concerns and questions about the integration. Address these concerns promptly and transparently.
Step 4: Regular Updates
The final part of your M&A communication timeline needs to establish a regular schedule for providing updates on the progress of the merger process. This could be weekly or bi-weekly, depending on the anticipated pace of the new integration. Celebrate successes and milestones achieved during the integration process. Be sure to recognize teams and individuals who contribute to the merger.
Acknowledge and address any challenges or employee concerns during the merger in M&A communications. Provide reassurance and a plan for overcoming these challenges. Continue to encourage employee feedback throughout the integration process. Use feedback to identify areas that need improvement and to make necessary adjustments to the integration strategy. Ensure that senior leaders are visible and accessible throughout the integration. This could include town hall meetings, open-door policies, and opportunities for employees to interact with leadership.
Creating an M&A Communication Strategy
Building a robust M&A communication strategy is key to ensuring that employees feel informed, engaged, and supported throughout the transition. A comprehensive strategy addresses concerns, keeps employees aligned, and ensures transparency during what is often a stressful time.
Here are 10 key elements to consider when creating an effective M&A communication strategy.
#1 Establish Clear Objectives
Clearly defined objectives provide a solid foundation for all communication efforts. Whether it’s ensuring transparency, maintaining employee morale, or aligning both organizations with the company’s vision, setting goals helps ensure that the strategy remains focused and results-driven throughout the merger or acquisition process.
#2 Assemble a Cross-Functional Communication Team
While internal communicators play the pivotal role, involving leaders from different departments, such as HR, IT, legal, and operations, help to ensure that the communication plan is comprehensive and addresses the needs of various organizational areas. This team should work collaboratively to align messages and streamline efforts to avoid conflicting or confusing communications.
#3 Identify and Understand Your Audiences
Effective communication depends on knowing who you are addressing. Understanding the different employee segments, whether it’s leadership, managers, or staff, allows for tailored messaging that resonates with each group’s unique concerns and needs. Identifying these audiences early on helps ensure that the right information reaches the right people at the right time.
#4 Develop Clear and Timely Messaging
Clear, concise, and consistent messaging is essential to reduce uncertainty and speculation. Communicating major updates as soon as they’re available while avoiding delays or vague language, ensures that employees stay informed and confident in their understanding of the process.
#5 Select Appropriate Communication Channels
The communication channels you use must match the preferences and needs of your audience. Whether it’s email, intranet updates, town halls, or one-on-one meetings, selecting the right channels will help ensure messages are received, understood, and acted upon by employees at all levels.
#6 Plan the Communication Timeline
Developing a detailed communication timeline allows for timely delivery of messages, ensuring that employees are kept up to date on all important milestones throughout the M&A process. A well-planned timeline (see above) ensures that messages are not overwhelming but are strategically spaced out to reinforce key points.
#7 Empower Leaders and Managers
Leaders and managers are commonly the primary point of contact for employees. Equipping them with the right information, tools, and training will help them deliver key messages effectively and address concerns from their teams and/or departments in real time.
#8 Establish Two-way Communication
While it’s important to share information with employees, it’s equally important to listen to their concerns and feedback. Setting up feedback mechanisms, such as surveys or open forums, helps create a dialogue that makes employees feel heard and allows for course corrections when necessary.
Leadership, internal communicators, and HR teams should not be afraid to adjust messaging, timelines, or engagement tactics based on employee feedback. Flexibility is key to maintaining trust and momentum during a merger or acquisition.
#9 Focus on Cultural Integration
M&As often involve blending two distinct corporate cultures. Developing communication strategies that emphasize shared values and encourage cross-cultural understanding can help employees navigate these changes smoothly and create a cohesive, united workforce moving forward.
It’s important to acknowledge that cultural integration is often a significant challenge in M&As, and poor communication can exacerbate these issues. Jessica Ciccozzi, Founder and Director of East Executive, notes that many M&As fail to realize their potential because cultural integration and communication strategies are overlooked. In Beyond the Deal: Why Culture, Communication, and People are Critical to Successful M&As, she argues that the key to realizing synergies is not just the technology or assets but the people behind them. Retaining and engaging critical talent is the real driver of M&A success. Without consistent communication, employees will fill the void with their own interpretations, leading to confusion and distrust.
“In 2025, the true value of M&As won’t lie solely in tech synergies — people synergies will be the key to capitalizing on deal investments. Only by prioritizing people can organizations fully realize the true strategic deal value and achieve long-term success.” Jessica Ciccozzi
#10 Monitor, Measure, and Adjust
As the M&A process progresses, regularly assessing the effectiveness of your communication strategy allows you to identify what’s working and what needs improvement. Regular feedback, monitoring employee sentiment, and adjusting strategies as needed help ensure the communication plan remains relevant and impactful throughout the merger or acquisition.
The Role of IC Software in M&A Communications
The right internal communications software is essential to executing a successful M&A communication plan. It can be the difference between transparency and confusion during a merger or acquisition. Modern IC platforms like Cerkl Broadcast offer powerful capabilities that help organizations deliver timely, targeted, and effective messaging during periods of change.
Real-time Updates: Internal communication software enables companies to provide real-time updates about the M&A process. Timely communication keeps employees informed, reduces uncertainty, and ensures both internal communicators and audiences stay aligned as new developments arise.
Personalized Communication: Advanced IC software allows for personalized messaging based on employee roles, locations, departments, or interests. By tailoring information to what is most relevant for each audience segment, companies can reduce information overload, increase engagement, and show employees they are seen and valued.
Open and Transparent Communication: Transparency is crucial during M&A activities. Modern platforms provide secure spaces to share critical updates, answer questions, and address concerns openly. In this way, they give employees a clear understanding of what changes mean for them individually and collectively.
Feedback and Q&A Mechanisms: Strong communication tools facilitate two-way dialogue. Features like anonymous surveys, pulse polls, live Q&A sessions, and Team or Slack integrations (which we use at Cerkl) allow employees to voice concerns, ask questions, and receive timely responses. Maintaining a feedback loop strengthens trust and helps leaders quickly identify issues that may need to be addressed.
Mobile Accessibility: Many of today’s workforces are often hybrid or remote. Mobile-friendly IC platforms ensure that every employee, whether in the office, at home, or in the field, has immediate access to critical M&A updates and resources — anytime, anywhere. When you choose an IC software platform, ensure that it embraces this concept.
What Makes M&A Communications Successful?
Effective communication during mergers and acquisitions (M&A) is pivotal to ensuring a smooth transition and maintaining employee engagement. Ongoing studies underscore the profound impact that strategic internal communication has on the success of M&A activities, highlighting how uncertainty can lead to decreased morale, while clear and consistent communication becomes even more critical.
Gallup’s recent 2025 State of the Global Workplace report reveals a decline in global employee engagement, dropping from 23% to 21% in 2024. Notably, manager engagement also fell from 30% to 27%, emphasizing the cascading effect of leadership engagement on overall employee morale. While the report doesn’t focus on M&As, the data suggests that empowering managers with timely information and communication tools is essential during M&A processes.
To foster trust and minimize disruptions:
- Prioritize Transparency: Openly share information about the merger’s progress and implications to reduce uncertainty.
- Engage Leadership: Ensure that managers are well-informed and equipped to address their teams’ concerns effectively.
- Utilize Feedback Mechanisms: Implement channels for employees to voice questions and feedback, demonstrating that their input is valued.
By focusing on these strategies, organizations can navigate the complexities of M&A with a more engaged and resilient workforce.
There is no doubt that incorporating internal communication software into M&A communications can be a game-changer. It enables organizations to provide real-time updates, promote open and transparent communication, and establish Q&A and feedback mechanisms. By leveraging this technology, companies can keep employees informed, engaged, and involved in the process.
What’s Next?
Cerkl’s internal communication software, Broadcast, has helped many organizations successfully engage their employees during the M&A transition process — and we’re ready to help you too. If you’re not quite ready to take the next step, why not start by downloading our free AI-powered Internal Communications Strategy Template?
A well-executed internal communications strategy can be a game-changer, especially during complex transitions like mergers and acquisitions. But building one isn’t always easy. Our template is designed for professionals across industries who need to craft precise, effective messaging that resonates with employees at every level.
It’s fully customizable to your organization’s unique goals and communication needs — and it’s easy to adapt to any situation, including the challenges of M&A.
FAQ
Before, during, and after an M&A, communications exist to keep employees informed and help them understand every step of the process. Effective communication will ensure employees stay engaged, and productive, and should be used to ease any employee concerns during a merger.
During a merger, internal communications should focus on creating a dedicated team, crafting clear and transparent messages, using multiple channels, hosting town hall meetings, addressing employee concerns, providing training, and ensuring consistent leadership visibility.
Senior leadership, supported by HR and internal communications teams, should communicate merger information to employees. Communication should be timely, transparent, and delivered across multiple channels to keep employees informed and engaged.
For M&A communications to be meaningful, send a clear and concise email to employees or hold a town hall meeting. Communicate the reasons for the merger, the expected benefits, and the vision for the new organization. Address potential employee concerns and provide a timeline for integration. Offer opportunities for questions to ensure transparency and understanding.
