Setting M&A Up for Success
The Critical Role of Positioning, Messaging, Public Relations, Social Media, and Financial Packages
by Serge Jonnaert
Mergers and acquisitions (M&A) remain one of the most powerful strategies for companies looking to scale, enter new markets, or realize shareholder value. However, M&A success is far from guaranteed—studies estimate that 70-90% of M&A deals fail to achieve their intended objectives. While financial misalignment, cultural mismatches, and operational challenges are common pitfalls, many deals falter well before due diligence even begins. The root cause? Poor positioning, ineffective messaging, weak public relations and social media presence, and a lackluster financial presentation. In this post, we’ll explore why these elements are crucial to the success of M&A engagements and how their absence can lead to failure.
The Importance of Proper Positioning in M&A
Strategic positioning is a cornerstone of M&A success. Buyers need to clearly understand a target company’s unique value proposition, competitive advantage, market differentiation, and M&A objective. Without strong positioning, a company risks being undervalued—or worse, get ignored altogether. A study by McKinsey & Company found that clear communication of the deal’s strategic rationale is one of the top predictors of M&A success. Deals with strong positioning saw a 25% higher likelihood of achieving their goals compared to those without.
The Power of Messaging in M&A
Messaging involves creating consistent and compelling communications that align with the positioning strategy. A well-crafted narrative—why the company is a compelling acquisition target, how it fits within a broader industry trend, and what synergies it offers—can significantly influence investor and buyer interest. It includes press releases, social media updates, customer and supplier updates, as well as internal communications. Inconsistent or vague messaging can create uncertainty and undermine investor or buyer confidence. A 2021 Harvard Business Review study found that companies with clear, compelling messaging in their investor communications are 30% more likely to attract interest from strategic buyers. A Deloitte survey revealed that 65% of failed M&A deals cited “misaligned communication of strategic goals” as a key factor. Proper messaging is equally important before and during an M&A process. According to a survey by PwC, 85% of executives believe that effective communication during an M&A transaction is critical to success. Yet, only 54% reported having a formal communication plan in place. Messaging gaps can quickly create distrust, derailing negotiations even before due diligence.
The Role of PR and Social Media Coverage
Public relations and social media play a vital role in shaping public perception and managing reputational risks before and during M&A transactions. A strong public profile automatically attracts potential buyers. Without a proactive PR and social media strategy, companies risk being overlooked or undervalued. Positive PR can build excitement and support, while negative PR can derail a deal entirely. By sharing insights into strategic reasons for a merger, companies can also position themselves as forward-thinking leaders in their industry.
Public relations and social media should be an integral part of your marketing strategy well ahead of considering M&A. You want to continuously create and curate engaging, timely content that showcases you, your company, products or services, and your uniqueness. Choose appropriate media outlets (trade publications, general media,…), social media platforms and groups (e.g. professional groups on LinkedIn) based on where your target audience is most active. This ensures your messages reach the right people. Explore posting on LinkedIn (Groups), X, Quora, Reddit, and professional messaging boards. It helps stage a strategic vision for a future deal, while maintaining positive sentiment as you grow your company.
Research from Edelman indicates that 63% of investors trust companies with strong media engagement and active social media presence more than those without, and 81% of buyers consider lack of trust a dealbreaker in M&A. A PwC study adds that companies with negative media sentiment immediately face a 15-20% valuation discount. Here too, there is a post-deal impact with a study by Brunswick Group revealing that companies with proactive PR strategies during M&A transactions experienced 15% higher employee retention rates and 20% better customer satisfaction scores.
Social media has become an indispensable tool in crafting effective PR outreach and fostering continuous engagement. It offers a dynamic platform for brands to amplify their messages, reaching global and diverse audiences quickly and cost-effectively. Through strategic content creation and targeted campaigns that are linked through social media, it enables you to humanize your brand and your team, build trust, and establish meaningful connections with stakeholders. Moreover, its real-time nature allows for instant feedback and interaction, empowering you to adapt your strategies on the fly and maintain ongoing conversations. By consistently engaging through comments, direct messages, live sessions, or user-generated content, companies can nurture relationships, enhance loyalty, and stay top-of-mind in an increasingly competitive digital landscape. Social media plays a pivotal role in modern communication strategies but is often overlooked from a PR perspective before and during M&A activities. Companies that ignore social media risk losing control of the narrative or getting ignored altogether.
The Need for a Strong Financial Presentation in M&A
When preparing MS Excel (most common format) financials for M&A purposes, it is essential to include comprehensive historical financial data spanning at least three years, as well as forward-looking projections for the next three years to provide a clear view of past performance and future potential. The Profit & Loss (P&L) statement should be meticulously broken down by cost center or business segment to offer granular insights into revenue streams, operating expenses, and profitability drivers. Additionally, a detailed balance sheet must be included to assess the company’s assets, liabilities, and equity position, while a cash flow statement will help evaluate liquidity and operational efficiency. Supporting schedules such as working capital analysis, debt schedules, capital expenditure plans, and key performance indicators (KPIs) may be presented later on in due diligence, but should be prepared nonetheless to establish the financial health and strategic value of the target company. To make it perfect, include YOY Revenue Growth Rate, Gross Margin Trend, EBITDA Margin Trend, Operating Cash Flow Trend, and Burn Rate. All data should be presented in a clean, organized format with clear assumptions underlying the projections, enabling prospective investors or buyers to make informed decisions.
Where relevant, the file should capture sales pipeline data, conversion rates, and sales cycle length to evaluate the efficiency of the sales process, e.g. metrics such as monthly recurring revenue (MRR), annual recurring revenue (ARR), new customers added, customer lifetime value (CLTV), Churn Rate (%), customer acquisition cost (CAC), Average Revenue Per User (ARPU), net promoter score (NPS) to assess customer satisfaction and retention. Including historical data on these metrics over several periods will help identify trends and inform valuation. Lastly, incorporating industry benchmarks and competitor analysis can offer context, ensuring that the company’s performance is measured against market standards, ultimately aiding in strategic decision-making during the M&A process.
We strongly advise against including any valuation assumptions and data, e.g. Discounted Cash Flow (DCF) analyses or comparable company (comps) multiples. By presenting specific valuations, you risk undervaluing your business if the inputs are overly conservative or deterring potential buyers if they perceive the numbers as inflated. Instead, let the market dictate the value of your company by focusing on its strategic strengths, growth opportunities, and competitive advantages. This approach allows for a more dynamic and competitive bidding process, where interested parties can assess the intrinsic worth based on their own investment criteria and synergies, ultimately leading to a more accurate and potentially higher valuation.
Conclusion – The Recipe for M&A Success
While M&A transactions already involve complex financial, operational, and cultural considerations and negotiations, the importance of positioning, messaging, PR, social media coverage, as well as proper financial packaging cannot be overstated. It serves as the foundation for building trust, managing expectations, and ensuring a smooth execution. Neglecting any of these areas risks alienating potential partners, undervaluation, deal collapse, and missed opportunities. As the M&A landscape grows more competitive, a holistic approach isn’t optional—it’s imperative.
How THE.MERGER.COMPANY® can assist
With over 36 years of proven expertise in product marketing, public relations, and social media strategy, we can position your company for success before and during an M&A transaction. Our approach begins with crafting a compelling positioning and messaging framework that clearly articulates your value proposition, ensuring alignment with your M&A goals. Through strategic storytelling and thought leadership initiatives, we ensure your company is perceived as a strong, attractive investment or acquisition opportunity, building credibility and trust at every stage. With decades of experience driving successful outcomes for companies navigating complex deals, we bring both creativity and precision to your M&A journey—ensuring you not only meet but exceed your strategic objectives.
References:
- Harvard Business Review. (2011). “The Big Idea: The New M&A Playbook.”
- McKinsey & Company. (2018). “The Power of Niche Positioning in M&A.” & “What Makes a Merger Successful?”
- Deloitte. (2020). “M&A Trends Report.”
- Edelman Trust Barometer. (2023).
- PwC. (2020). “Global M&A Industry Trends.” & “M&A Integration Survey Report”
- Sprout Social. (2022). “Social Media’s Role in Due Diligence.”
- KPMG. (2021). “M&A Failures: A Financial Perspective.”
- Bain & Company – “Mastering the Merger”
- Brunswick Group – “Reputation and M&A Study”