M&A Day 1 is the first full business day after ownership is transferred.
How well Day 1 is managed sets the tone for the rest of the M&A integration. The first day should inspire stakeholders' confidence in the acquirer. It is a statement about the acquirer's ability to execute.
This section features many plans, presentations, checklists, and playbooks to help acquirers prepare for Day 1 and educate their people on how to effectively communicate with employees, customers, and vendors about the acquisition.
The Power of "Opening Moves
So the deal closes. It’s “Day 1.” Are you ready for one of management’s big moments?
First impressions tend to be lasting impressions, and this highlights the importance of opening moves. Your initial actions make a defining statement about the forthcoming integration process and management intent. Up until this point, people will have been carefully listening to what management has said about the deal, but they believe what they see. Talk is cheap . . . the reality lies in what actually begins to happen before people’s eyes.
So how can you seize the moment and use this pivotal opportunity for maximum effect? Follow these seven guidelines and your opening moves will serve as a launch pad for successful integration …
How you begin the integration process carries heavy influence over how you will finish.
Day 1 Plans and Presentations
- Day 1 Implementation
- What Must Happen on Day 1
- Three Phases of Integrations
- Managing Expectations
- HR: Day 1
- Headquarters Day 1 Event Schedule
- They Won at HQ Will Be Telecast Worldwide
- They Won Employee Welcome Package
- Guidance for Field Force and Shift Workers
- IT Accessibility for Acquiree On Day 1
Excerpt from Answers to Employees FAQs
- Is the purchase/sale of Acquiree to Acquirer finalized?
Yes. The U.S. Department of Justice (DOJ) and Acquirer have entered into an agreement which permitted the acquisition to proceed. The Acquirer and Acquiree have both received Board and Shareholder approval and we have officially closed the deal.
- What Acquiree offices are included in the sale?
All Acquiree’s operations in North America, Europe, and Asia are included in the deal.
- Do you anticipate closing any Acquiree or Acquirer Company facilities? Do you anticipate job losses due to the merger?
We have formed global integration teams that include members from both Acquirer and Acquiree. They will look at where functions, resources, and processes can be combined in order to reduce cost, better serve our customers, and ...
Today, marks the beginning of our new organization. This Day 1 Onboarding Guide is designed to help you understand changes that are taking place (or will take place) and any actions you may need to take.
The purpose of this guide is to explain:
- What you need to know now (Now: this week)
- What you'll need to know and do in the very near future
- When other changes will take place and when you can expect to hear more about them
You will continue to do your job the same way you did before close. As we continue to integrate our organizations, we will inform you of changes, and if your assistance is needed. This guide covers company-wide information. Your manager will cover information specific to your function.
Day 1 M&A Communications Objectives
– Mark the completion of the transaction as an opportunity to honor the past and recognize the contributions of the employees of both organizations
– Promote the strengths and benefits of the new company, its brand and growth strategy to promote employee attachment to NewCo …
Day 1 Event
What will the celebration consist of? | How many attending? | Dialing in? | Who will make presentations? | Information welcome packets? | Who will create? | Audio/visual equipment required? | Signage changed? | Who will remove/install? | What will employees receive on Day 1? (Badges, IDs, Business Cards, Phone Cards, Credit Cards, Building/Parking Access Cards, etc.) …
Day 1 Welcome Packets
Message from CEO | Safety Overview | Basic FAQs | New Company Infographic | Company Vision | Email structure | FAQ process | Acquirer Swag | Pay & Benefits reminder | Checklist | What to expect soon | IT Access …
Deliverable and Spokespeople
- Employee Playbook - Managers (Acquirer & Acquired Co.)
- Customer Playbook - Sales & Marketing Organizations (Acquirer & Acq. Co.)
- Supplier Playbook - Supplier-Facing Teams (Acquirer & Acq. Co.)
- Welcome Week Playbook - Welcome Week Teams …
Day Before Close
Day 1 Upon Completion of Close
Sample Day 1 Run of Show
Day 1 + Welcome Week Strawman
Day Before Close
Resolution of DOJ Review Announced, Receive Confirmation of Close Date, Ship items to facilities, Finalize call/webcast logistics, Prep session for Welcome Teams (Cover Welcome Playbook), Prep for Facility Managers/HR Managers Prep for Company A managers, Prep for Company B managers …
- FTC gives indication that clearance is likely
- Confirm all final communication documents are uploaded to SmartSheet
- FTC Clears transaction to close
- Press release related to HSR completion
- Issue Corporate Acquired Co Investors Press Release ...
- Steering Committee Call to Review Communication Plan
- Acquirer Press Release Distribution
- Acquired Co. Press Release Distribution
- Send BU Meeting Invites
- BU Employee Calls
- BU Customer Calls
- BU Customer Email
- Supplier Calls …
Day 1 Checklists
Checklist of 270 tasks.
|Status||Preparation Completed by Day 1|
|On Track||Playbooks: SC Review|
|On Track||Corporate communications / IR review|
|On Track||Supplier-facing Webcast|
|On Track||Employee-facing webcast with HR professionals|
|On Track||Day 1 Timeline Completed|
|On Track||Meet with Heads and Leads to incorporate "alignment" tactics for Day 1|
Day 1 Deliverables
Day 1 Preparation
Detailed employee census, access to Acquired Co. leadership
Seamless day 1
Access to Acquired Co. systems and analysis of how they do things, review change in control
Change in control
All change in control issues and potential challenges resolved (Banking, Insurance, etc)
Review staffing, Acquired Co. & Acquirer practices around tax (payroll, S&U, income, property)
SOP for finance
Limits of authority, accounting methodology/framework, month-end procedures & etc.
Day 1 Checklist in Excel of 131 tasks for:
- Financial System Integration /Financial Forecasting /Insurance
- Human Resources
- It Infrastructure
- Purchasing /Supply Chain Management
- Sales and Business Development
- Project Operations / Service Management
- Real Estate / Environment
Day 1 Playbooks
Sixteen page document that includes answers to seventy-five employee FAQs, plus communication guidelines, and important talking points and messages.
|Key Messages for Employee||4|
|Employee Talking Points||5|
|Impact on Operations||11|
|Compensation, Benefits, and Incentives||13|
|Sales Professionals FAQ||15|
|Question Specific to New Employees||16|
Covers 36 HR workstreams and more than 200 actions. Plus, includes key risks and interdependencies.
- Workers Comp.
- Health and Dental
- Short and Long Term Disability
- Organization Structure
- Travel ...
Includes answers to FAQs, sample letters to suppliers, and important talking points and messages.
Answers to 13 Supplier Frequently Asked Questions
Will my point of contact at Company change?
There are no changes today; however, if there are changes as we work to integrate the two companies, we will inform you as quickly as possible. Our relationship with you remains a priority.
What is going to change?
For the time being, please continue to work with us as you have in the past. Company and Target will keep existing practices in place for the short-term. As we work to integrate the two companies, we expect to identify ways to consolidate and streamline our policies and practices. But until advised further please continue to do things the same as you do today. Prior to any change we will inform you of the changes ...
Easily customized Word document that includes answers to FAQs, sample letters to customers, and critical talking points and messages.
Customer Communication Guidelines (excerpt from page 3)
- Adhere to the information set forth in these documents and do not elaborate or expand upon the information provided.
- If a customer asks a question that is not included in these materials, it is likely something we cannot answer at this time. Capture the customer’s question and pass it to your manager.
- Maintain the very highest ethical standards and remain focused, as always, on serving the needs of our customers.
- Do not call out comparisons to other industry mergers or acquisitions.
- Do not speculate on the future state, leadership, outcome and people ...