The Reed Group has promised to maintain current operations while investing new dollars in educating employees, updating equipment, and upgrading computers to allow us to serve you more efficiently. But the most effective and commonly used retention tool after a merger or acquisition is a retention bonus. Employees at both companies will get nervous about their future at the new entity and start to look for a new job. We will implement these plans with the utmost concern for our own employees’ well-being. Here are some of the most important considerations about this phase of the project your transaction team should review before making the initial announcement: Obviously you will need to notify the employees at both joining business entities, but you will also want to make a list of other important stakeholders that will need to know this information. It is important for the leader, or leaders, responsible for this new entity to show their optimism and vision for the future to help align and motivate employees. Note that formal thank you letters or appreciation letter to employees don't necessarily have to come from HR departments! From: Mr. Peterson. Notice isn’t required. Example 4: Sample Letter for Acquisition & Merger. Merger. Also, make sure that your human resources team is prepared to handle all types of questions that could come up from the employees. I’m sure you will recognize this restructuring as a strengthening of our ability to develop and market products and systems effectively, particularly the addition of more field salespeople. It is important to spend time reviewing all of these considerations before announcing because of the importance of your transaction being successful in the long term.The majority of mergers and acquisitions end up failing their original objectives. Whether that be to gain market share, increase revenues, or develop a new technology. The more specific you can be about these, the better. The majority of mergers and acquisitions end up failing their original objectives. This new direction offers an even more promising horizon. We appreciate your continued cooperation, interest, and contribution during this transition period. In a recent merger, targeted communications and leadership time spent cultivating the high performers—including one-on-one discussions between them and the leadership on future career paths—let them know how greatly they were valued. Certification Workshop. Lots of jobs ask you to submit a cover letter along with your other application materials, yet also if a cover letter is optional, you could take the opportunity to send out one along. It is important to spend time reviewing all of these considerations before announcing because of the importance of your transaction being successful in the long term. We are in the process of making a number of changes in our worldwide manufacturing operations that will require us to establish an after-tax profit reserve of about $555,000,000. Be sensitive to the time it may take for employees to accept change post merger. JOHNSON CITY, Tenn. - … Wednesday, April 1st 2015. This letter will help you inform both your current and soon to be account holders of the upcoming merge and what to expect. Make certain your cover letter includes these three things. I’ve outlined below the major reporting changes…. Letter to Employees - Merger or Acquisition Announcement. If you send your cover letter as an accessory, you can send it as either a PDF data or Word paper. We want to put more power and authority in the hands of those closest to our customers and their needs. Getting There. Brochures on each of these lines will be coming to you within the next two to three months. In this post, we have tried to provide a bird’s eye view of the many points and challenges to be conscious of in the process. Although mergers and acquisitions are typically used as an umbrella term to represent two companies … At the few sites where our studies are still incomplete, we will continue to listen to our own staff and work closely with them, keeping you informed every step of the way. Of course, the negotiations and complete processing may take up to three months. In a nutshell, this acquisition means you now work for the industry leader in supplying quality products that span the range of _____ to _____. Mr. Mark Thomas . Announcing the good news in an acquisition announcement letter raises the morale of not only your customers but the employees as well. We look forward to your help with our operational plans for growth. Certification Workshop. Our headquarters will be moved to the Chicago office sometime within the next year. The transfer of employment will happen automatically. We are pleased to say we now have a goal, and we have a plan. Employee Benefits Issues after Mergers and Acquisitions. Employee benefits are a complicated venture after a merger or an acquisition. What and When to Tell Employees about a Merger or Acquisition. As the company announced the shocking news that it's to buy Nokia's devices and services division, outgoing Microsoft CEO Steve Ballmer sent a letter to Microsoft employees … Celebrate your accomplishments and history. Introduce the New Brand. But before we get started, make sure you download our template (and complete M&A Guide) for company merger and acquisition announcements here: hbspt.cta._relativeUrls=true;hbspt.cta.load(3044396, 'ec9ce763-9304-498f-b5a3-b872c5b8ddce', {}); There are several things your organization(s) will want to consider before announcing a merger or acquisition. Create a New Letter. This will be a collaborative process, just as most things are here. We anticipate no changes in coverage or costs as a result of this agreement. You could promise new roles to high-potential and high-impact employees as well as offer them more flexibility and leniency in cultural aspects moving forward with their employment. I love what I do, working with all of you, shipping incredible security products, and I’m excited to keep doing that at Cisco. As stated above, most mergers and acquisitions fail. We will keep you informed of all the events and plans as we learn of them ourselves. Importantly, the unions’ agreements represent an enhancement to … We can answer few other questions at this time because all decisions regarding _____ are still pending. (Basically, so that they stay at the company during this critical time after the merger and acquisition.). In this blog, we will explain all of the considerations that go into communicating to your staff for the first time about the merger or acquisition, as well as what to include in your letter or memo that you will be sending out to make the announcement. Your benefits such as medical and life insurance and our stock ownership plans will remain intact. Share past memories and allow employees … Mr. Mark Thomas. Company Merger Letter To Employees Source: itlever.files.wordpress.com. Employees in one plant received the preview and those in another received limited information. This means that the purchaser can’t just buy part of an organization, or just the intellectual property, but all of the organization’s assets. All of us have an exciting future around the corner. City, State Zip. Dear Mrs. Hancock: Cut ‘N Curl Beauty Salons recently merged with Supreme Cuts Salons. Wrong! This merger will start an exciting next chapter for all Ingram Micro stakeholders, including our vendor and customer partners and you, our associates. We’ve set up a special hotline (743-8891) directly to the Atlanta office, where representatives will have all the latest information about the changes we’ve outlined here. As you probably know, in most cases our own people have participated in the studies and understand the importance of these plans and this action. The next few weeks will be busy, exciting, and challenging ones. Company Name or Letterhead Address City, State Zip. The only visible change evident immediately will be…. As a part of this effort, you will be involved in a series of meetings with your manager to gather information and suggestions on decisions directly affecting your area. The disclosure to the outside world that a company is for sale — in other words, a candidate for a merger or an acquisition — can be a devastating bit of news. Employee Benefits Issues after Mergers and Acquisitions. MSHA CEO Letter to employees confirms Wellmont merger. In the meantime, we will be working with you individually to give you direction in finding alternative insurance. Empathy for employee needs breeds the help you need to manage change. Updated logistical information, such as a new website, location, or logo. It's still fine to move forward, right? A pending merger; Going out of business; The layoff letter should include the criteria used for selecting which workers would lose their jobs. Lots of jobs ask you to submit a cover letter along with your other application materials, yet also if a cover letter is optional, you could take the opportunity to send out one along. Most of our divisions will experience very little, if any, change in their day-to-day operations. This is a very exciting event for both companies, for our employees and our clients. We’re glad you’re on board for this promising new future. The onus should be on those employees who will be directly affected by the change, and managers need to be very aware of the vibes in their departments. In the interim period, we anticipate operating as we do currently; no changes in management have been discussed or approved. The letter should come from the new top manager of the merged organization or be written as a jointly-issued communication from the CEOs of the merging companies. As news of the Delta Air Lines Inc.'s $17.7 billion merger with Northwest Airlines broke, Delta executives sent the following memo to Delta employees:. We have learned today an agreement has been reached for Farmington investors to acquire the stock of Bledson International. A Company Merger and/or Acquisition Announcement Template, The Hart-Scott-Rodino Act and Premerger Notifications: An Overview. Thank you for your patience in this transition period. With this acquisition, Hosack is now the largest and strongest ______ manufacturer in the Northwest. Because of this, your transaction team will want to partner with both company’s human resources departments to ensure that you have a plan to retain important employees. A A. wellmont-mountain-states-png-2048062-ver1-0.png . Make certain your cover letter includes these three things. had just announced a merger. And that is why you need a company merger announcement template or a company acquisition announcement template (depending on the type of deal you are working on). Word of mouth travels fast, and it will be more than likely that the press gets ahold of your company news within a matter of days or hours. Here's just what else you should you take into consideration when crafting an e-mail cover letter. Make sure that you provide all the information they need, and give them the details about when they should start using the new logistical information. Such as your marketing team, legal team, shipping team, etc. Business Letter. Goals, impacts, and new objectives of this transaction. A A. wellmont-mountain-states-png-2048062-ver1-0.png . Mergers and acquisitions are an exciting and challenging area of business. After a merger, employees will naturally be concerned about terminations, since the new company won’t need two accounting or human resources departments. The merger will provide the path to improved compensation and benefits for employees. This is a one-time bonus that the organization will give out to high-impact employees. Business leaders need to focus on effective communication and improving the employee experience. However, as soon as we complete our studies and make these decisions, we will keep you informed. Bloomberg delivers business and markets news, data, analysis, and video to the world, featuring stories from Businessweek and Bloomberg News on everything pertaining to technology Dear M. B. This fact did not go unnoticed by Howard Schultz, Starbucks' chief executive.And he also made sure Starbucks employees were well aware of the situation--all 190,000 of them. When we do reach final agreement, Irontide will become a private, stand-alone company no longer affiliated with any other engineering or construction firms. If it is not yet finalized, provide as much information as possible about the upcoming date that you legally can. Of course, it will be several months before we can arrange all the day-to-day operational changes throughout the organization. Internal Memorandum Keep up the good work. So, before you make the initial announcement, make sure you have some sort of human resources road map. Is it because the company’s technologies are complimentary? The US has seen more than 325,000 mergers & acquisitions since 1985. The communications plan must absolutely address high potentials and critical employees. Heinz Chairman, President and CEO Bill Johnson issued a letter to employees this morning after news broke that the company agreed to be acquired by Berkshire Hathaway and 3G Capital. Addressee Address City, State Zip. January 19, 2012. Employees can refuse to work for the new employer. The layoff letter should also explain clearly the company policy about layoffs and any collective bargaining rules that may apply when laying off an employee. To All Employees of Irontide: Today Grafton, Inc. announced an agreement has been reached with certain investors to acquire the stock of Irontide. We have a fine company–a company with people who have the highest values and interest for their colleagues. There are several different departments in your organization who will need this new information. by Preston Ayres. We think this new plan appropriately places us on the brink of a bright decade for Universal. Today Universal and Harrington Uptown have reached an agreement to merge and restructure their organizations so both can devote time, resources, and expertise to what they know best in the _____ industry. Founder and Chairman of Peterson Enterprises Ltd. [Sub: Business proposal for a merger] Dear Mr. Thomas, This letter … And that is just one issue to worry about! Your close contact with the customer will offer the insights we need to take advantage of our leadership position. Results based on four collections of data indicated that the preview reduced dysfunctional outcomes of the merger. Make the merger announcement on new company letterhead or on stationary or an email template that contains both existing company logos. by Preston Ayres. If the deal is finalized, provide the date at which is was finalized. Let me assure you we have no plans to lay off any employees or offer any early retirement incentives. Address The Chairman, KLN Inc, XYZ Street, ABC Town, State. There are several things your organization(s) will want to consider before announcing a merger or acquisition. Make sure you have your legal counsel review the announcement! When you announce your company merger or acquisition, there are several things to consider. But did you know that a lot of these failures result from human capital issues? The initial announcement will be responsible for letting your investors and employees know that you are currently working on closing, or have closed, a merger or acquisition. This merger will start an exciting next chapter for all Ingram Micro stakeholders, including our vendor and customer partners and you, our associates. Absolutely Address high potentials and critical employees in advance, you may direct questions to immediate., please direct them through the normal channels lot of these failures from. Immediate supervisors the details of this transaction at approximately $ 6.0 billion, $. 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