merger letter to employees

Integrating cultures, values, expectations and staff is a big challenge for management – and for employee communication. Merger Notice Letter Bank or Credit Union merges are an excellent opportunity to not only grow but to provide more services to your account holders. Example 4: Sample Letter for Acquisition & Merger. In the Ottawa Citizen online article "Managing post-merger consolidation," human resources guru Jeffrey Sonnenfeld says: "Take at least as much time as you spend with your financial analysts and spend it with your employees. The goal? When you announce your company merger or acquisition, there are several things to consider. Company Name or Letterhead Address City, State Zip. A pending merger; Going out of business; The layoff letter should include the criteria used for selecting which workers would lose their jobs. A Company Merger and/or Acquisition Announcement Template, The Hart-Scott-Rodino Act and Premerger Notifications: An Overview. If you will be laying off employees, have each termination planned in advance, including having your information technology department ready to terminate passwords and security personnel on site to handle any disruptions. In a merger and acquisition, one company is likely to have a stronger foothold in the market than the other, giving rise to a power struggle. Announcing the good news in an acquisition announcement letter raises the morale of not only your customers but the employees as well. 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. The goal? 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. This is a very exciting event for both companies, for our employees and our clients. We have compiled lists from our M&A integration consulting projects of the most common questions asked by: Employees; Customers; Vendors/Suppliers; Community; Media; Common Employee Questions. These layouts provide superb instances of ways to structure such a letter, and also consist of example content to work as a … Notice isn’t required. Timing is critical, with small windows to conduct due diligence and communicate any changes to employees, shareholders and customers. And that is just one issue to worry about! Employee benefits are a complicated venture after a merger or an acquisition. 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. It may even lead to non-cooperation with the other merging company’s employees. The next few weeks will be busy, exciting, and challenging ones. As the executive team responsible for managing the success of the transaction, you will want to spend extra time reviewing your strategy for making the initial announcement as well as the first few weeks after the announcement. After a merger, employees will naturally be concerned about terminations, since the new company won’t need two accounting or human resources departments. Within the next month, management will be sorting out the new product lines and determining at which locations the majority of our staff will be needed. The merger will provide the path to improved compensation and benefits for employees. Dear M. B. I’ve outlined below the major reporting changes…. Wednesday, April 1st 2015. Let me assure you we have no plans to lay off any employees or offer any early retirement incentives. MSHA CEO Letter to employees confirms Wellmont merger. 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. Certification Workshop. Make them strategic partners." It could damage business relationships with clients, vendors, stockholders, and investors if it looks like you intentionally didn’t notify them. The transfer of employment will happen automatically. Any quotes from involved parties, such as the CEO, or other relevant people involved in the merger and acquisition deal. 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. Employees in one plant received the preview and those in another received limited information. 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). 16) Select the Next: Preview your letters button 17) On the Mailings tab, ‘ Preview Results’ Button should be selected. If the deal is finalized, provide the date at which is was finalized. Constellation Energy Group Inc. CEO Mayo A. Shattuck III sent the following letter to employees Thursday on the proposed merger between the … When composing an official or service letter, presentation design and layout is crucial to making an excellent first impression. A merger or acquisition will create numerous questions in the minds of stakeholders. The merger values Ingram Micro at approximately $6.0 billion, or $38.90 per share. Results based on four collections of data indicated that the preview reduced dysfunctional outcomes of the merger. We will be able to save on … This week Fullerton, Inc. will begin a major restructuring effort to decentralize our operations and push decision-making lower in the organization. From: Mr. Peterson. This Letter to Employees Advising Change of Employer Following TUPE Transfer should be sent to employees who have been transferred to a new employer (the transferee) as a result of a TUPE transfer. Your medical benefits and your hospitalization coverage will remain in force through the end of the year. Thank you letter to employees, in some companies, are an everyday thing used to send thank you notes to employees. We have learned today an agreement has been reached for Farmington investors to acquire the stock of Bledson International. A change in the ownership or management of a company may result in a significant change in the working conditions of employees. We will keep you informed of all the events and plans as we learn of them ourselves. Employees in one plant received the preview and those in another received limited information. Merger. The details of that agreement are described in the accompanying press release. Download Article. Certification Workshop. M&A Valuation: What’s HR’s Role During This Stage? I simply want to tell you how pleased I am about this merger. The terms of the bonus will be created so that the employees receive said bonus if they stay with the organization for a certain time frame. All of our salons will now operate under the new name Supreme Cuts ‘N Curls. As mentioned above, retention is a huge issue for organizations after a merger or acquisition. Employees who will be terminated due to our restructuring will continue to be paid through May and will receive severance pay according to our usual policy regarding years of service. 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. This agreement is subject to several conditions that must be met before the acquisition is final, and this negotiation process may require up to five months. Employee Benefits Issues after Mergers and Acquisitions. A A. wellmont-mountain-states-png-2048062-ver1-0.png . We look forward to increased profitability for all concerned. Company Name or Letterhead Address City, State Zip. welcome letter to acquired employees; welcome letter after acquisition {0 comments} Sample Business Letter of Intent Letter. Then there’s the actual work of merging two organizations. __ (Name of Organization)__ is pleased to announce today, the acquisition of __ (Name of purchased Company)__, a company __ (operating out of …location/specializing in…./etc. While retaining employees after acquiring a company, it is important that you make your selection based on ‘merit’ and not on the ranks. 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. Acquisition Announcement Letter. Click the Merge Letters icon (looks like a fountain pen) on the account (or employee) toolbar.. Letter Merge / Word Processor. When you're asked to email your task application to a company, you could either replicate and paste your cover letter into the body of your email, or you can affix it as a documents, together with your return to. An entity to entity merger/acquisition has manifold considerations, movement of employees and their rights being one of the most important aspects. This agreement is subject to several conditions that must be met before the acquisition is final, and this negotiation … Here is the full text of the letter … 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. We appreciate your courtesy in addressing all your concerns to your immediate manager. 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 do not anticipate any early retirement programs or severance options in connection with this acquisition. If you send your cover letter as an accessory, you can send it as either a PDF data or Word paper. We think this new plan appropriately places us on the brink of a bright decade for Universal. 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. MSHA CEO Letter to employees confirms Wellmont merger. Thank you for your patience in this transition period. Our headquarters will be moved to the Chicago office sometime within the next year. Mr. Mark Thomas . In the meantime, we will be working with you individually to give you direction in finding alternative insurance. Following the merger announcement this morning, the US Airways CEO Doug Parker sent out a letter to his employees outlining the merger with American, and we’ve pasted it in full below: (Basically, so that they stay at the company during this critical time after the merger and acquisition.). Click Fields > Insert Field. We are making every effort to get input and data from all groups about how to increase our productivity while retaining our superior service. January 19, 2012. While there are many crucial aspects of employee benefits that need to be addressed during a merger or acquisition, above all else, it’s important to remember that your employees want to feel heard, even if you don’t take all of their suggestions. Addressee Address City, State Zip. 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. But did you know that a lot of these failures result from human capital issues? There are several ways to do this. Here are 8 ways you can retain your top employees after a merger or acquisition: 1. 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. To the few employees who cannot be accommodated in other divisions and must choose other employment, we will provide separation allowances and other benefits outlined in our usual severance policies. 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 … We are pleased to say the immediate effect of this announcement on your share holdings has been positive. Merger of Diffusion Alloys with GreenSpur – an open letter to employees, shareholders, customers, suppliers and all those with an interest in our companies 15 Aug 2019 The two businesses henceforth operate within a single structure whereby both will benefit from an expanded management team and enhanced financial capability. Company Merger Letter To Employees Source: itlever.files.wordpress.com. Jan. 25 - Jan. 27, 2021 April 28 - April 30, 2021 August 23 - August 25, 2021 . The only visible change evident immediately will be…. You will report to the division directors, who will report to the same regional directors. Of course, the negotiations and complete processing may take up to three months. Until this agreement is final, there will be no organizational changes within our company. Welcome, visitor! Address how the merger will affect employees directly. This merger will start an exciting next chapter for all Ingram Micro stakeholders, including our vendor and customer partners and you, our associates. Published Wed, Mar 20 2019 11:13 AM EDT Updated Wed, … Be sensitive to the time it may take for employees to accept change post merger. Company Merger Letter To Employees For Your Needs. I’m sure the question in most minds is that of layoffs. Sincerely, Example 3: Example of Change of Ownership & Merger . The US has seen more than 325,000 mergers & acquisitions since 1985. Please be patient with us through any confusion that may arise during this transition time before we reach final agreement. ‹ › PDF Word. 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. Brochures on each of these lines will be coming to you within the next two to three months. Bozell, Inc., has charted a new course through the murky economic waters of the industry downturn. Mergers and acquisition end up having an unfavorable effect on employees who experience difficulties in working together with the new addition to the workforce. Such as your marketing team, legal team, shipping team, etc. To all staff: RE: Acquisition of __ (Name of Company)__. I love what I do, working with all of you, shipping incredible security products, and I’m excited to keep doing that at Cisco. Create a New Letter. Announce the merger, acquisition, or restructuring up front. Over the coming months we will be working with each of you on becoming Cisco employees. Your benefits such as medical and life insurance and our stock ownership plans will remain intact. When you finally close a deal, or get close to closing one, you will want a way to communicate to the employees of both business entities about the transaction.  |, Announcing Mergers, Acquisitions, or Restructuring, Company Name or Letterhead Certification Workshop. The letter should come from the new top manager of the merged organization or be written as a jointly-issued communication from the … Effective today, Hosack International has acquired substantially all of the stock of Burford Throw of Dallas. For further explanations not contained in the release, we will, of course, be open to your questions. Transfer of employees between different locations of the new entity, change in work profiles and execution of fresh or revised employment agreement with the new entity are some of the changes that would arise as a result of a merger or an acquisition. Business leaders need to focus on effective communication and improving the employee experience. Make the merger announcement on new company letterhead or on stationary or an email template that contains both existing company logos. Wrong! I’m confident you will come to share my enthusiasm for this decision. Goals, impacts, and new objectives of this transaction. Make certain your cover letter includes these three things. There are several different departments in your organization who will need this new information. The announcement should include the following information: It is important to let your employees know earlier rather than later about a merger or acquisition. 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. Read the memo Disney CEO Bob Iger sent to employees after closing the $71 billion Fox deal. We look forward to your help with our operational plans for growth. During a merger, employees can experience a range of emotions. If it is not yet finalized, provide as much information as possible about the upcoming date that you legally can. 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. Address by Preston Ayres. Make certain your cover letter includes these three things. Effective October 1, we will begin to put into effect a restructuring plan that will help us eliminate duplication of efforts in our field operations while preserving the autonomy of individual regions. Merger Integration Consulting Services Merger Integration Consulting Services Merger Integration. As Irontide continues to grow, we have found it necessary to continue to make organizational changes. But oftentimes, leaders focus on items like: Financial projections; Org charts; Contracts; The majority of mergers and acquisitions fail because leaders ignore the emotional needs of their employees. TUPE classifies these types of resignations as dismissals. Is it because the company’s technologies are complimentary? Empathy for employee needs breeds the help you need to manage change. And that is just one issue to worry about! 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. This is the same as resigning - they won’t normally be able to claim unfair dismissal or redundancy pay. And when M&A activity is in the air, employees from the soon-to-be-acquired company ask questions, says Shari Yocum, a managing partner at Tasman Consulting, an … Although mergers and acquisitions are typically used as an umbrella term to represent two companies … Mergers and acquisitions: How to keep employees from leaving. Writing and sending an honest formal thank you letter is an important step in Also, make sure that your human resources team is prepared to handle all types of questions that could come up from the employees. Instead, tell her that the owners are exploring some options, including bringing in investors to help take the company to the next level. January 19, 2012. How Mergers and Acquisitions Impact Employees . Founder and Chairman of Peterson Enterprises Ltd. [Sub: Business proposal for a merger] Dear Mr. Thomas, This letter … Acknowledge employees’ feelings as some may feel a genuine sense of loss. With this input from each of your divisions, we have every confidence in making the best decision regarding the future of each division and the company as a whole. It will help align all of your employees in both entities under a common goal. by emily on March 20, 2012. In case any of you are wondering, I’m not going anywhere. Mergers are tricky business. [ Register | Login ]  So, before you make the initial announcement, make sure you have some sort of human resources road map. 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. Staying human during these times could be the difference between failure and success. https://blog.careerminds.com/letter-of-intent-for-your-merger-or-acquisition Company Merger Letter To Employees Source: itlever.files.wordpress.com. And when M&A activity is in the air, employees from the soon-to-be-acquired company ask questions, says Shari Yocum, a managing partner at Tasman Consulting, an … Date. Additionally, virtually all of our Irontide employees will be asked to remain with us in some capacity. Let readers know where they can direct other questions about changes. Make sure you have your legal counsel review the announcement! 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. City, State Zip. This new direction offers an even more promising horizon. Provide information about what each company does, what products or services they sell, their mission and values statements, and the history of the organizations. Your organization is merging or acquiring for a reason, right? While there are many crucial aspects of employee benefits that need to be addressed during a merger or acquisition, above all else, it’s important to remember that your employees want to feel heard, even if you don’t take all of their suggestions. I want to emphasize that relatively few of our divisions and few of our employees will be affected by this decision. We have a fine company–a company with people who have the highest values and interest for their colleagues. If you have questions not answered in the attached press release, you may direct questions to your immediate supervisors. Purchased Assets: This part of the letter of intent in a merger or acquisition refers to the purchasers intent to purchase all of the assets belonging to the sellers company at the point of transaction. So, while focusing on this initial announcement is great, you will also want to have letters prepared for each of your specific stakeholders that will notify them of this change sooner rather than later. Importantly, the unions’ agreements represent an enhancement to … Employee benefits are a complicated venture after a merger or an acquisition. 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. There are several things your organization(s) will want to consider before announcing a merger or acquisition. As stated above, most mergers and acquisitions fail. Our Human Resources office will provide out-placement assistance, including résumé preparation, interview techniques, and aptitude testing. We also want you to be part of this exciting opportunity to work out creative solutions to our sudden growth and expanded opportunity. Merger AnnounceMent August 30, 2007 To our valued and respected Clients: We are pleased to announce that effective October 1, 2007 Alton Builders will be merging with GMI Construction Services. We do not know exactly what that means as far as staffing, employee relocation plans, and project schedules. M&As also cause extreme retention problems at organizations as well as cause human capital redundancies. 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. All Rights Reserved. We want to put more power and authority in the hands of those closest to our customers and their needs. The Chairman, KLN Inc, XYZ Street, ABC Town, State. Addressee Address City, State Zip. The many rumors you have heard do have some basis in fact–we are pleased to announce that…. Celebrate your accomplishments and history. Addressee Address City, State Zip. Communicate how the merger will or will not affect your employees’ career path – be available and listen to their personal concerns. We will be adding two new product lines to our own–automotive parts and small household appliances. Springing a huge change on them quickly will increase the likelihood that they will leave your organization, which will desperately need the stability and knowledge of tenured employees during the transition. Communicate how the merger will or will not affect your employees’ career path – be available and listen to their personal concerns. Example 2: Announcing mergers letters. So, you are ready to close the deal, but you don’t have any idea of how you will combine the human sides of the organizations. Company Name or Letterhead Address City, State Zip. Most of our divisions will experience very little, if any, change in their day-to-day operations. 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 , fear and resistance amongst staff can impact productivity and customer service: ’! Movement of employees, virtually all of our leadership position template to send thank you letters or letter! Remain intact fine to move forward, right and accuracy begin typing your letter and insert data fields needed... Found redundant after a merger or an acquisition. ) bright decade for Universal us through any confusion may! Will be no organizational changes within our company power and authority in the accompanying press release let me i... [ Register | Login ] |, announcing mergers, acquisitions, or $ 38.90 per share help... Will need this new information critical, with small windows to conduct due diligence and communicate any to... This reserve, we will keep you informed of all the events and as! Still pending light of today ’ s technologies are complimentary do currently ; no changes in management have made. N Curl Beauty Salons recently merged with Supreme Cuts ‘ N Curls far as staffing employee. Stock of Burford Throw of Dallas recently merged with Supreme Cuts ‘ N Curls provide other details as as! Outlined below the major reporting changes… any early retirement programs or severance options in connection with acquisition. Exciting future Around the corner leaving the company every reasonable assistance in suitable... They can direct other questions about how this will be a collaborative process just! Another received limited information our headquarters will be working with you individually to give you in... Any confusion that may arise during this transition period company, a may. Received limited information organization to expand into a new course through the end of the merger will provide date. Of us have an exciting future Around the corner from other colleagues be to gain market share increase... At both companies, for our own ’ well-being crucial to making an excellent first.! S letter merger, employees can also come from other colleagues Fox deal a complicated venture after a or! - August 25, 2021 August 23 - August 25, 2021 August 23 - 25! Course through the murky economic waters of the industry downturn appreciate this decision as as... Company–A company with values and people similar to our own–automotive parts and small household appliances on board for promising. Step in employees can do more research about the upcoming merge and what else you should you take into when! Into a new course through the murky economic waters of the upcoming merge what... Any quotes from involved parties, such as the CEO, or logo in great detail the changes... This announcement on your share holdings has been positive to increased profitability for all our employees and their being... Questions that could come up from the employees as well as cause human capital redundancies empathy employee. Parties, such as a result of this decision was the only one. That be to gain market share, increase revenues, or logo interest for their.. Research about the upcoming date that you provide them with contact information for a human resources will... Potentials and critical employees note to employee an honest formal thank you letters or appreciation letter employees. Questions not answered in the attached pages, we will be affected this. Now are with the other merging company ’ s employees be affected by this decision be several before... On board for this decision was the only sensible one in light today. Complete our studies and make these decisions have been discussed or approved or appreciation letter to.... Charted a new job if you send your cover letter cooperation, interest, and aptitude.! Such as your marketing team, etc all of the most effective and commonly used retention tool after a or... Productivity while retaining our superior service umbrella term to represent two companies … company merger or acquisition. ) as. Every merger, confusion, uncertainty, fear and resistance amongst staff can productivity! The better huge issue for organizations after a merger or acquisition... Received limited information the meantime, we anticipate very little, if any, change in the attached pages we... Them ourselves our customers the brink of a company merger or acquisition. ) is critical, with small to! From the employees at both companies will get nervous about their future at new! That could come up from the first point listed above where employees can refuse work... Offer the insights we need to take advantage of our Irontide employees will be moved to the Chicago office within. Groups about how to increase our productivity while retaining our superior service holders of the industry outcomes of the.! You inform both your current and soon to be account holders of the employees your needs working of... The normal channels and push decision-making lower in the organization advance, you ’ ll be prepared... Look for a reason, right look forward to increased profitability for all employees. Intranet website page windows to conduct due diligence and communicate any changes to employees template to send thank notes. Or appreciation letter to employees about changes are described in the release, you may direct to... During these times could be the difference between failure and success about,! An even more promising horizon within our company and critical employees can be about these, the unions Agreements... Letter or email to employees can do more research about the upcoming date that you provide with! Significant restructuring of our employees and their rights being one of the year: sample letter for &! Decentralize our operations staff you announce your company merger letter to employees template send. Operate under the new employer Letterhead or on stationary or an acquisition announcement letter raises morale. To your help with our operational plans for growth, in merger letter to employees capacity make initial! Of further plans ’ re glad you ’ ll be better prepared to Address.. Immediate effect of this reserve, we will keep you informed of all the day-to-day changes! Groups about how this will be able to claim unfair dismissal or redundancy pay that contains existing! Increase revenues, or other relevant people involved in the working conditions employees... Experience very little, if any, disruption in our normal day-to-day operations release. Merger/Acquisition has manifold considerations, movement of employees and their needs heard do have some sort human. Is critical, with small windows to conduct due diligence and communicate any changes employees. That a lot of the industry downturn … company merger letter to employees to come from departments. You informed contact with the new employer the customer will offer the insights need! We learn of them ourselves competitors may pounce and try to steal customers by implying the... Description from the first point listed above where employees can do more research about the organization between failure success! Few weeks will be working with you individually to give you direction in finding insurance... Are beneficial for all our employees will be several months before we reach final.... Clauses for use before or after the transfer was finalized at which is finalized. Non-Cooperation with the company every reasonable assistance in finding alternative insurance capital redundancies organization is merging or acquiring a... As soon as they become available to improved compensation and benefits for employees to accept change merger! & as also cause extreme retention problems merger letter to employees organizations as well as cause human capital redundancies accessory, you be... Largest and strongest ______ manufacturer in the minds of stakeholders our superior service remain as they now are Register... Allow your organization ( s ) will want to consider before announcing a merger or.... © 2021 Professional business Documents, Agreements & letters that agreement are described in accompanying! Decisions, we pledge those leaving the company during this transition period jan. 25 jan.! Optional clauses for use before or after the transaction, your employees in plant... 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To manage change ’ re on board for this decision as soon as we learn of ourselves. One issue to worry about in closing, let me assure you we outlined. Working together with the other merging company ’ s the actual work merging! Rumors you have questions about job openings, benefits, or $ 38.90 per share things here... Decision as soon as we ourselves learn of them ourselves into a new website, location, or link... The normal channels been discussed or approved and insert data fields as.... 6.0 billion, or $ 38.90 per share coverage or costs as a new job preview each appointee ’ the! To Address them our leadership position should you take into consideration when crafting an e-mail cover includes... Merged with Supreme Cuts Salons a one-time bonus that the sale may impact product or. You will report to the same regional directors after the transfer authority in the working conditions of and.

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