How to Communicate a Merger or Acquisition to Customers (Example Letter Included)

Mergers and acquisitions can be an exciting time for any organization. But they can also be stressful when navigating the complex process of communicating about said merger or acquisition to all affected parties, including your clients and customers.

Effectively communicating large changes like a merger or an acquisition is important to maintain good relationships with your clients and customers. They are the lifeblood of your organization. Without the revenue generated from their business, your entire organization could falter. It’s also important to sustain your current business so that your company growth and brand don’t suffer through such a major transition.

This requires a balance of focus on retaining current clients while also looking ahead for opportunities to add new clients from the merger or acquisition. This is why it’s so important to carefully communicate a merger or acquisition to customers of all kinds, and understand why these specific changes are so important to them.

So how do you communicate a merger or acquisition to customers in a way that preserves their relationship and revenue? In this article, we will review a sample merger client announcement letter and dissect all of the essential components to craft your own M&A communications plan for your organization.

Your M&A communications plan for clients and customers needs to be carefully crafted to ensure you can retain current business while encouraging new growth. A helpful way to do this is to draft a sample merger announcement to customers ahead of time, so you have it ready to edit and implement during your next M&A event.

Let’s start with an example of a M&A client announcement letter to give you an idea of what your own M&A communications toolkit should include. Below is a sample merger announcement to customers that you can copy and customize for your own organization.

Feel free to copy and customize this free client announcement letter example to craft your own M&A communications toolkit. Of course, remember to review your M&A communications plan with your legal team before sending anything to your customers to ensure that you comply with all local, state, and federal laws.

Before we break down this sample merger announcement to customers into the key components to include in your own M&A client communication, you can click below to download a free PDF version of this sample M&A client notification and our complete guide to smoothly navigate the merger and acquisition process from start to finish.

Let’s dissect this sample merger or acquisition client announcement letter into its key components and what you’ll need to include as you craft your own M&A communications toolkit. Now, for some of your high-impact clients, it might make sense to take the time to give them the news in person. But generally, sending over a written letter to communicate a merger or acquisition to customers is perfectly acceptable, and is still important to do even if you notify them in person.

There are a few elements that are essential to ensure you communicate a merger or acquisition to customers as thoroughly and thoughtfully as possible. Keep these in mind as you customize this example letter for your organization.

Here are the key sections your M&A client announcement letter should include:

1. Merger or acquisition announcement: In this first section, you will want to announce the companies that will either be merged or acquired, the official date of the transaction, and the name of the new organization (if it will change).

2. Background on your organization: Explain the history of your organization in this section. This could include when you were founded, what achievements you’ve had, and where you are in the present day. This is a good opportunity to tell your clients that this success would have been impossible without them.

3. Reason for the merger or acquisition: Explain why your organization has decided to participate in this merger or acquisition and what value you expect to gain from it. Was it to acquire more advanced technology? Reach a broader market? Tap into a completely new market? Make sure to explain your reasoning. This section will be even better if you can identify why this reason for the merger or acquisition will be impactful for your client.

4. Any synergies you will capitalize on: In this section, you will need to explain what synergies the two organizations will align on. For example, you could discuss the value both organizations place on high-quality products, or your joint mission to create a more transparent world.

5. What this means for your clients: This is the most important part of the letter. You need to communicate to your clients how this will impact the services or products they receive from you. For example, address any new services or products that will become available to them, how the merger or acquisition will impact their current service/product costs, if their point of contact will change (and who that new person will be), and if there will be any changes to the types of products or services they receive now.

6. Logistical information: This section needs to lay out any changes to your organization’s logistical and contact information as you integrate post-merger or acquisition. Where will your new company be operating from? Will your organization’s phone numbers or address change? Be sure to provide information for someone at your organization that your client can contact if they have more questions.

7. Client appreciation: Thank your clients for their continued support and partnership, and let them know you are looking forward to doing more business with them into the future.

The sections listed above are the basic things you should include in your M&A client announcement letter. It’s also important to remember some additional considerations when you communicate a merger or acquisition to customers.

Firstly, you will need to modify the sections above based on whether your organization is going through a merger, is being acquired, or is acquiring another organization. The verbiage and type of information that you will need to share with clients can vary greatly based on these differences.

You may also need to further modify this letter based on your organization’s specific situation. Not every merger or acquisition is identical, nor is the timeframe or client impact of these deals always the same. Make sure you understand what your specific situation needs, and revise the language in your own client announcement letter accordingly to make sense for your organization and customers.

This timeframe for when to send your M&A client announcement letter is also important to choose carefully. You will want to tell your clients far enough in advance so that they can prepare for how it will potentially impact their business, and ensure they receive the news before it breaks in the press.

Now let’s talk about why communicating a merger or acquisition to customers is so important. There are several reasons why a client could potentially care about your merger or acquisition.

For starters, your most engaged clients and customers–often called your brand evangelists–will want to know about your merger and acquisition because it will be newsworthy to them. They are the clients who love your company, give you referrals, subscribe to all your communications, and are super users who will be eager to hear about such big news.

Beyond this, all of your clients and customers will want to be informed about a merger or acquisition if it will at all impact the services or products they use. Even if you think that the merger or acquisition will not change your service, it might still impact how your client sees your service.

For example, a client may view your acquisition as a conflict of interest if the acquired company is a competitor of theirs. Or if you merge with a more technologically advanced organization, this could save your clients money on their vendor expenses if they were trying to purchase something with the same functionality. So you have an obligation to notify your clients regardless of the impact you think it will have.

Finally, a merger or acquisition usually results in changes to processes and technological systems. Your clients need to be alerted of this well in advance so that they can minimize the impact on their own internal systems. If you don’t sufficiently notify them, then having a huge break or change in your service could jeopardize their productivity, morale, and even their revenue, which would likewise be damaging to your business relationship.

If crafted correctly, your M&A communications plan should accurately update your clients on all of the pertinent news surrounding your merger or acquisition. By doing so, you ensure that your clients and customers are in the know, prepared for any changes, and informed about the merger or acquisition’s impact on the partnership you have created with them.

This means making sure your M&A client announcement letter properly announces the merger or acquisition, provides a background on your organization and the reason for the deal, explains what synergies the two organizations will bring together and how that will impact your client’s services, offers a means for them to reach out with any questions, and expresses your appreciation for their continued partnership.

It’s important to mention that these letters should be customized to fit your specific business and situation. The sample merger announcement shared above can get you started on that journey with a typical, standardized letter. But then you will want to revise it to the specifics of your merger or acquisition and its impact on your individual customers.

At Careerminds, we believe that you can never be too prepared for your next merger or acquisition, especially any that might result in workforce reductions. Our arsenal of resources, templates, guides, and industry-leading outplacement services can help you navigate the delicate integration or reduction process. Click below to speak with one of our experts and see if we are the right partner for your organization.

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Rebecca Ahn

Rebecca is a writer, editor, and business consultant with over 10 years of experience launching, managing, and coaching small to midsize companies on their business, marketing, and HR operations. She is a passionate people advocate who believes in building strong people, teams, and companies with empowering culture, content, and communication that facilitates meaningful results at every level and touchpoint. In her spare time, Rebecca is an avid traveler and nomad who also enjoys writing about travel safety and savvy. Learn more on her LinkedIn page.