PR Strategy Can Improve M and A Deal Outcomes

Generating strategic publicity can have a positive impact on the outcome of merger and acquisition deals-good news, given the fact that most deals don't produce the downstream JN0-120results desired by dealmakers. A recent University of Michigan-sponsored study found that, "Bidders in stock mergers originate substantially more news stories after the start of merger negotiations, but before the public announcement," says Denis Sosyura, UM assistant professor of finance. "This strategy generates a short-lived run-up in bidders' stock prices precisely during the period when the stock-exchange ratio is determined, which leads to a lower takeover price." In their study of 500 mergers, Sosyura and his research colleagues provide strong evidence that firms manage their media through news releases precisely when they would benefit the most from a temporary price increase.
Negligent communications can undermine a good deal. Here are some tips that will improve your chances of putting together a more successful deal using good public relations strategies and tactics:
• Communicate -Take better control of the damaging buzz surrounding your deal by developing a communications strategy aimed at all the stakeholders very early in the process. Adopt a candid and clear messaging posture that demonstrates thatJN0-130 you care about all audiences involved-because you're going to need all of them to buy in to your deal to make it work.
• Research stakeholders - Understand all your audiences by assessing their attitudes toward the prospective deal by surveying representatives. Then report their positions (consistent with your objectives) to show that you are being inclusive and use their views to build support for the deal at various stages.
• Target messages - Once you have established a central set of deal benefits messages, then calibrate them for your various external and internal audiences, since they have different concerns.
• Develop media relations strategy -Develop a list of key financial, trade and general business journalists who will be reporting on your deal, then give them briefings very early in the process, that provide all permissible information. This will give you a chance to position the deal early on and reduce possible hostility resulting from an overly constricted media policy. Like it or not, the media are "players" in all deals.
• Focus on deal benefits - Lead off all deal communications with the anticipated benefits to customers, employees, shareholders, vendors, regulators and the larger business community.
• Train and coach deal spokespeople -JN0-304 Use only C-Suite spokespeople to command respect, instead of public relations staff or consultants. Since communicating through the media is rarely an executive's strength, provide expert training to ensure that your message is effective.