M&A Transition: The Immediate Steps
When closing an M&A deal, you probably expect to make some changes to the acquired company. Some tasks are more urgent than others. You should settle the following tasks and process prior to closing. The moment the deal closes, you need to communicate the following information to the new employees:
Company name, e-mail, phone, and website: Do the employees continue to use the old company name, use the name of the acquirer, or use something else? Will they be using the same contact info, or do they have new e-mail addresses and phone numbers?
Will they have a new website and/or URL? Do they need to use a particular letterhead and/or e-mail signature? Even if the info stays the same, make sure to communicate the fact to the employees that their contact info is the same.
Payroll: Make sure the new employees continue to receive their paychecks (or direct deposits). Pay close attention to dates of the all-important day known as payday! People work to earn money, so this area is one you don’t want to screw up. If a payday is coming immediately after closing, make sure that payroll is set up ahead of time so you don’t miss a beat when paying employees.
If you are unable to continue direct deposits for that first payroll due to changing banks (not an uncommon occurrence following a acquisition), you absolutely need to make sure checks are printed and ready to be delivered to the employees.
Contact info of the new owner: New employees need to know who to contact if they have a question. Following the announcement of the closed deal, make sure all the employees know who to contact at the new owner’s company in case they have a question.
Banking and paying bills: If you’re switching the acquired company to a new bank, that bank account needs to be set up prior to close so the financial people at the acquired company know exactly where to deposit checks and from where to pay the bills.
Purchasing: The new employees also need to know whether their suppliers are changing or whether they should continue to purchase raw materials from their old sources.
Sales team: In addition to needing to know the basic contact info, sales teams need to know which proposal templates and sales contracts they need to use. Should they continue to use the old documents, or do you have new sales documents?