Sample Merger Announcement
The following includes the information to cover when announcing a merger or acquisition plus the guidelines to follow when writing the announcement.
Acquiring Company to Acquire Acquired Company (possibly mention price)
Other notable information
Paragraph 1: Announcement
Acquiring company announced today…
- Amount (cash, stock)
Paragraph 2: Investor Relations
- SEC implications
Paragraph 3: Why acquisition was initiated
- How this will add value to acquiring company
Paragraph 4: Information about Acquired Company
- What products/services/technology the company offers
- What market it serves
Paragraph 5: Quote from Acquiring Company CEO
Paragraph 6: Quote from Acquired Company CEO
Paragraph 7: Financial Implications
- How this deal will be advantageous to the market the acquiring company serves
Paragraph 8: Specifics of Acquisition
- How operations will be integrated
- How the acquired company's products will be integrated
- How will this affect customers
Paragraph 9: Background
- Acquired company’s background information (boiler plate)
- Acquiring company’s background information (boiler plate)
When writing a merger announcement, make sure the content and the format of the message are clear. Keep the following guidelines in mind:
- Provide Substantial Information—The less work the reporter has to do in following up on your story, the more likely it will be published.
- Offer Real News—A press release is not the place to write an advertisement for your business. Real news is something that is unusual or noteworthy.
- Be Direct—A good press release should answer the who, what, why, when, where, and how questions as briefly as possible.
- Stay Objective—Do not offer opinions. Just state the facts.
- Avoid Buzz Words, Acronyms, and Jargon—Avoiding company or industry jargon and technical talk will help reporters understand your news more effectively.
- Type the release double spaced on regular size paper.
- Be brief—Try to keep it to one page.
- Emphasize the most important information first.
- Vary paragraph lengths.
- Allow wide margins for editors to write.
- Put the release date at the top of the page, as well as the company’s identification information.
- Check carefully for spelling, grammar, etc.
- Know the reporting deadlines. If a release arrives late, it will not be published