Rick Hall, the Managing Director of Banking & Finance Services at BKM Marketing, was recently showcased as a prominent guest in the panel discussion titled "What No One Tells You About M&A Communications," which was organized by Digital Onboarding. The discussion focused on mergers and acquisitions (M&A) communications within the financial industry, shedding light on important insights and strategies for effective communication during these transformative events.
As summarized by Digital Onboarding, U.S. bank and credit union M&A transactions cooled last year after a two-year spike, but experts predict 2023 could be a year for dealmaking. The reputational risks associated with a botched conversion are enormous, yet anticipating and managing all communication risks can feel impossible.
To assist financial institutions in maximizing their investment and gaining valuable insights, Digital Onboarding assembled a team of industry experts with practical experience in mergers and acquisitions (M&A). The team includes esteemed professionals such as Rick Hall, the Managing Director of BKM Marketing, Mitchell Skoien, the Vice President & Product Manager at First Foundation Bank, Yvonne Garand, the Chief Brand and Marketing Officer at VSECU, and Tricia Hrotko, the Chief Customer Officer at Digital Onboarding. They will engage in discussions on common errors, effective communication strategies, and the challenges encountered during the transition phase.
Panel Discussion on M&A Communications
What No One Tells You About M&A Communications
The panel discussion highlighted the importance of effective communication strategies during mergers and acquisitions. The panelists discussed various aspects of M&A deals, including due diligence, cultural integration, and post-merger communication strategies, with a specific focus on:
- Typical communication mistakes that institutions make during M&A events
- What’s most important to customers and members during the transition, and
- How to build a communications strategy that maximizes satisfaction and minimizes attrition rates
A crucial lesson learned from the panel discussion was the significance of conducting thorough due diligence in M&A deals. It emphasized the need to meticulously research and analyze the target company before making an acquisition decision. This involves gaining a comprehensive understanding of the company's financials, market position, and potential risks and opportunities.
Furthermore, cultural integration is a crucial aspect of M&A deals, emphasizing the importance of companies understanding and respecting each other's cultures, values, and operating styles. This can be accomplished through transparent and sincere communication, as well as involving employees from both companies in the integration process.
The panel discussion also delved into post-merger communication strategies. The panelists stressed the significance of clear and consistent communication with all stakeholders, including employees, customers, and investors. This approach can help alleviate uncertainty and anxiety, ensuring a seamless transition for all parties involved.
During the discussion, the panelists shared their experiences with both successful and unsuccessful M&A deals, offering valuable insights into what strategies work and what doesn't. According to the panelists, having a clear and compelling vision for the future of the merged company is one of the key factors in a successful M&A deal. This vision can instill a sense of purpose and direction, inspiring employees to collaborate towards a common goal.
Overall, the panel discussion on M&A communications provided a wealth of insights and best practices for companies contemplating or undergoing a merger or acquisition. Effective communication, cultural integration, and a clear vision for the future were identified as crucial factors in successful M&A deals. By following these best practices, companies can minimize risks and maximize the potential benefits of M&A deals.
Click to Watch Digital Onboarding's Panel Discussion
Click here to view the Complete Transcript >
(6) KEY TAKEAWAYS
#1 - INVOLVE THE MARKETERS EARLY
Marketers are often not involved in the planning process for M&A communications, and their budgets may be decided without their input.
#2 - BOTH INTERNAL + EXTERNAL MESSAGING IS CRUCIAL
Crafting clear and consistent messages is crucial for successful communication during M&A, both internally to staff and externally to clients and customers.
#3 - FOCUS ON TRANSPARENCY + ENGAGEMENT FROM DAY 1
Communication efforts should start with the initial announcement and continue throughout the entire M&A process, with a focus on transparency and engagement.
#4 - CREDIT UNIONS HAVE UNIQUE CHALLENGES
Credit unions, in particular, face unique challenges in terms of membership voting and awareness during the merger process.
#5 - OVER-COMMUNICATION IS YOUR FRIEND
Over-communication is key to ensure that stakeholders are informed, and utilizing different communication channels based on audience preferences is essential.
#6 - KNOW YOUR STAKEHOLDERS INSIDE + OUT
Deep understanding of all stakeholders involved in the M&A process is necessary, considering their specific needs and engagement levels.
ABOUT THE EXPERTS
Learn more about the industry experts who led our way through a challenging, but critical, discussion.
Panelists
- Mitchell Skoien, VP, Product Manager, First Foundation Bank
- Yvonne Garand, Chief Brand and Marketing Officer, VSECU
- Rick Hall, Managing Director, BKM Marketing Associates
- Tricia Hrotko, Chief Customer Officer, Digital Onboarding
