In a recent post I wrote about why communication is important during mergers and acquisitions, especially for the insurance industry. In this post, the second in a three-part series, I’m going to discuss what specifically companies should communicate during M&A.
As I mentioned in the earlier post, all stakeholders need to know what’s going on when two businesses integrate their operations – employees, customers, suppliers and investors. Many insurance organizations, especially on the brokerage side, look to grow through acquisition. Organic growth is hard to achieve in insurance, so an M&A strategy is a quicker path to growth objectives. Often this takes the form of marrying two different companies, but it also can involve bringing on teams or bolting on capabilities. No matter how an insurance organization expands, it’s critically important to keep communicating with stakeholders. Companies that go through M&A aren’t just managing integrations; they also have to manage expectations.