Preparing for NewCo: Finding and Leveraging Opportunity

Kristina DiPalo, Founder/Owner, Elysian Communications LLC

NJ IABC

Strategic Communications Planning for a Merger/Acquisition

April 8, 2015

Starting Point

• What is a merger?– Formal: Absorption by a corporation of one or more

others; any of various methods of combining two or more organizations (as business concerns)

– Actual: Marriage in which one of the partners is on the fence, at best, or openly hostile, at worst, and the family (ie, stakeholders) is withholding judgment.

More Than Just Day OneOpportunity in Every Phase

Countdown to Close

Sustained Momentum

Launch of NewCo

Maintain focus, inform, engage

and prepare

Enhance promise of NewCo with

focus on continuity

Promote wins and guide through

change

• Create Roadmap• Inform and Engage• Partner with HR• Focus on Culture

• Coordinate Outreach• Prepare Leaders• Reiterate Promise• Launch Name/Brand

• Show Proof Points• Promote New Normal• Focus on Culture• Unveil New Standards

Getting GroundedStrategic Roadmap Creates Guideposts for Transition

Countdown to ClosePreparing for Launch Working as OneOperating as One Culture

60 Days Pre Close 30 Days Pre Close Day 1 – Day 60 Day 60 – Day 180

Day 1

▪ Assessing opportunities for revenue generation and cost savings

▪ Evaluating org design principles and starting process to shape NewCo - period will run next few months

▪ Announcing leadership: N-1, N-2

▪ Continuing org design to additional levels

▪ Preparing for Day 1

▪ Final org announcements, selection and restructuring

▪ Operating in NewCo with clarity of purpose and jobs

▪ Tracking progress

▪ Embracing common language, process, styles

Milestones

Remembering Your StakeholdersNot All Stakeholders Are Equal

Shareholders/Analysts

“What aboutgrowth/return?”

Communities“What happens

in my backyard?”

Vendors/Suppliers

“Who is my pointof contact?”

BusinessPartners

“How does this impact us?”

Gov’t/Policymakers“What does theCompany stand

for?”

Media“Who, What,

When, Where, How?”

IndustryCommunity“What are the

benefits?”

Customers“What changes?”“What doesn’t?”

Employees“What happens

to me?”

NewCo

The Must Haves:Building Blocks to Leverage Opportunity

– Build and sustain strong momentum between announcement and close, and beyond

▫ Act fast after Announcement Day

▫ Develop the Story, the Principles and the Rules of the Road

▫ Stay focused on people (internal and external)

– Address multiple stakeholder needs and concerns, modeling transparency and trust

▫ Be consistent, relevant and transparent – always

▫ “Mirror” communications across all stakeholder groups as much as possible

– Develop thorough, comprehensive plans for pre Day 1, Day 1 and beyond (week by week, per audience group, with clear accountability and interdependencies)

– Charter dedicated communications team and sub-team with strong, visible, collaborative leadership; reps from key functions across both merger partners (HR, BU’s, Legal, etc)

▫ Don’t be afraid to push back

– Prepare leaders and use them in the most appropriate manner, per culture and need

– Leverage feedback