When embarking on a business acquisition, there are many key factors to consider to maximize the chances of a successful takeover. Here, we won't be dealing with figures or tangible assets (we have less control over those 😀). We'll approach the topic of acquisition from a communication perspective (our passion). The goal is to anticipate all internal and external communication actions that will contribute to the project's success. Let's explore the communication elements of an acquisition together, step by step!
Step 1: Define your desires and, above all… envision the future
This step involves defining your goals and the type of business you wish to acquire. Naturally, the business acquisition project must be carefully considered based on your motivations and expertise. And of course, in relation to your life goals!
First, consider the effectuation, another way of approaching entrepreneurship. According to Philippe Silberzahn, the classic entrepreneur asks himself " What can I do with what I have? The classic strategy is called "causal" because it seeks the causes that lead to a desired effect. In contrast, the "effectual" approach reverses this by seeking the possible effects of given means. To do this, three means must be analyzed: the entrepreneur's personality, their expertise, and their relationships.
During this reflection, the question of whether or not one has mastered communication arises: what do I know about internal or external communication? Indeed, there are numerous communication techniques (Press relations, internal communications & corporate culture, web marketing, advertising, event planning, financial communicationsetc). Therefore, if I don't have a grasp of communication, or only partially, what resources in my network and/or within the company can support me in this area? As highlighted in our bingo of the onThere is no shortage of preconceived ideas about communication ("My cousin would have done it for less." " or "we Communication takes 5 minutes "). SO, Having ideas about communication is good, but surrounding yourself with communication experts in business or through a agency communication is even better !
Step 2: Prospecting and selecting the company
This step involves choosing the type of business you wish to acquire. This could be related to your own professional experience or in another sector with strong economic growth, for example. Furthermore, these choices are also influenced by the available budget (personal investment and loan).
In this pre-selection of the ideal company, it is essential to conduct an image and reputation audit.Measure your e-reputationContacting suppliers and services (like a mystery shopper), inquiring about any awards and certifications received… all these factors help to better understand the company's strengths and weaknesses. This perspective on the company's communication and stakeholder perceptions allows us to identify the three components of its image: the real or objective image (what the company is), the subjective image (the way it is perceived) and to make thee delta with the desired image.
Thus, this communication audit is a first external approach that allows us to measure the intangible value of the company.
Step 3: Evaluate and secure your choice of company
This step involves a more detailed evaluation of the shortlisted companies. Analysis of the current situation, profitability study (turnover, EBITDA, cash flow, etc.), social situation, lease rights, market research, opportunities to develop new markets… All these elements must be examined closely. Nothing should be left to chance, and especially not the value of the brand!
Since communication is an internal-to-external process, it is necessary to examine it in detail. In this sense, employees (at all levels) are the company's primary ambassadors! How do communication between teams work? Is there an internal communications department? Is there a genuine company culture? What motivates employees? As highlighted in The Communicator 8 "We cannot ask men and women to participate in a collective work blindly." So without internal communicationThe difficulties of recovery (and management) are even greater! Moreover, let's not forget that businesses are also ranked according to their ability to offer an optimal quality of working life.
Secondly, the analysis of communication tools and techniques allows us to to understand the strength of a company's action in external communicationDoes it advertise? On which media or non-media platforms? Does it have an advertising policy? sponsorship ou sponsoring Is there a customer loyalty strategy, and if so, what form does it take? How does communication contribute to acquiring new customers to support the sales team? What is the organization's digital strategy? What is its online presence? Are its communication activities carried out internally or outsourced? To which providers? At what cost? What is the ROI? Are there any key performance indicators (KPIs)? Have risk factors been analyzed to anticipate crisis communication?
Communication is a strategic element in building a company's image, whether large or small, to cultivate long-term trust with its stakeholders. If the company you are acquiring has neglected its image for many years, this is a factor that can negatively impact its value.
But, of course, the aforementioned economic factors are also important. A range of factors must be analyzed to make an informed choice.
Step 4: The acquisition, financing, declarations & legal formalities
Eureka! You've found the company that matches your budget, your project, and your values. Beyond the price and financial terms of the acquisition, you also need to choose a legal structure (EURL, SAS, SARL, etc.) and file the necessary legal declarations with the CFE (Business Formalities Centre), the BODACC (Official Bulletin of Civil and Commercial Announcements), the tax authorities, and other social security organizations. But these purely technical and administrative aspects shouldn't overshadow the human element.
Taking over a business is first and foremost about the human connection between the seller and the buyer, and especially the company's teams. Here again, internal communication plays a fundamental role in ensuring that the transfer goes as smoothly as possible: the new leader must take the initiative to introduce himself and present his project to give new perspectives to the collective.
Step 5: Launch, communicate and thrive!
As soon as the acquisition is finalized, the buyer must begin meeting with all key stakeholders in the company and, if the size allows, all staff. They must also inform clients and quickly meet with major clients, perhaps at an event. Generally, the seller supports the buyer for a few months to facilitate a smooth transition (but it's also a matter of personal rapport 🙂).
In terms of INTERNAL communication:
- Meet with managers and define strategic communication priorities (customer loyalty, advertising, brand awareness, media/press relations, etc.). And above all, clearly define your positioning, target audience, and message beforehand!
- Meet the internal staff This can be achieved through a friendly event or individual meetings to establish your presence as the new manager. Expressing your commitment to human values, sharing your strategy and its implementation, and communicating the company's management policy are all key success factors at the start of a takeover.
- If there are shareholders or business angels, It is essential to present oneself to them with a strategic plan to clearly explain the areas of development, innovation and growth.
In terms of EXTERNAL communication:
- Communicating the change to customersDelivering a reassuring message is one of the best ways to build loyalty during this critical stage in a company's life. A friendly meeting with the company's key accounts also provides an opportunity to explain in person that the handover of operations means continuity! It's also a chance to highlight upcoming new developments and innovations.
- Meet with suppliers and partners to, once again, explain the company's objectives and validate or not the common synergies or changes in operation.
- Conduct a comprehensive communication audit of all physical and digital communication tools to best adapt them to the objectives we have defined (signage, vehicle, workwear, events, stationery, website, blog and Social Media(commercial tools: CV, company brochure, etc.).
In conclusion ?
For some, taking over a business is a life project requiring unwavering commitment. For others, it's a strategic move to strengthen their market position. Whatever the buyer's motivations, they must not overlook the brand's intangible assets, its image, and the human element: the company's employees and staff. La internal communication et external are KEY FACTORS for success in a takeover This strategic position should not be neglected, as communication builds the... TRUST CAPITAL of a company over the long term.
Alexis Desjeux, DESJEUX CREATIONS (communication and training consulting agency @desjeuxcreation), guest of the We Are COM team
