© 2021 Ewing Marion Kauffman Foundation. Sam Ashe-Edmunds has been writing and lecturing for decades. CEO Letter. _____. __ (Name of Organization)__ is pleased to announce today, the acquisition of __ (Name of purchased Company)__, a company __ (operating out of … A letter magnifies the recognition that an employee experiences when offered praise or a heartfelt thank you. Letters to employers could be of different types. So we did our best to kill the surprise – and it worked. Download Tool. He has been published in print publications such as Entrepreneur, Tennis, SI for Kids, Chicago Tribune, Sacramento Bee, and on websites such Smart-Healthy-Living.net, SmartyCents and Youthletic. If you are close to closing a deal or have made an agreement, inform key employees first to ensure you stop any defection plans they might have. Once you’ve made your general announcement, start communicating with departments and individual employees. Letters to vendors must be written in the standard business letter format and should use an official letterhead. Download the free 1 Million Cups app and keep the #1MCnation spirit alive! Toggle navigation. This increased the buyer’s motivation to close, which gave us good leverage during the development of the definitive purchase documents, keeping the real price high. By the time the acquisition was completed, it was pretty much a non-issue for everyone except our overworked CFO. Christopher Robbins/Photodisc/Getty Images. Merger Integration Consulting Services Merger Integration Consulting Services Merger Integration. Lay out the reasons for the merger or acquisition, how it will benefit the company and what the future holds for employees, including job security and any changes to their benefits. At a time like this, people often become concerned about the impact of the acquisition on their personal future. After a merger, employees will naturally be concerned about terminations, since the new company won’t need two accounting or human resources departments. Jan. 25 - Jan. 27, 2021 April 28 - April 30, 2021 August 23 - August 25, 2021 . From employment contracts to termination letters, our bank of free HR forms and recruiter templates has everything you need to hire, fire, and more. The text below was included as an exhibit to an SEC Form 8-K filed by Farmer Bros. on the morning of May 1, 2007, in which it was reported that "[o]n April 30, 2007, the Company held employee meetings and issued a letter describing the acquisition of Coffee Bean Intl, Inc.". When they pin the letter … During the transition, keep employees updated at least weekly to let them know what changes they will be seeing in the immediate future. Fear of the unknown is greatest, so sharing (and explaining) the truth would mitigate the negative impacts. Addressee Address City, State Zip. Nobody left, and everyone said good things during due diligence. Moral of this story: honesty was the best policy, but it took thorough preparation and hard work. 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. In this example, the employee was … We told everyone that buyers would come kick the tires from time to time and we would always listen. The Announcement. In the end, we had a whole team of people helping allay employee fears. Your email address will not be published. Letters to employers are letters written to people or organizations that hire or employ people. If time is … These third-party letters are especially useful in circumstances where there are not many medical records. Our senior managers all had stock options, which generated a nice incentive to complete the acquisition. Employees save these letters forever and experience a renewed glow with each re-reading. 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. Dear [Employee Name], This letter is made to inform you about the new company policy of [Name of Company] with regard to vacations. the business assets of XYZ Co.] based in [LOCATION OF BUSINESS ACQUIRED, ex. By Bill Snow . First, I thought of a number of reasons to tell them right away: Of course, I got lots of good advice on why I should keep it quiet until the very end: Employees have good reason to fear an acquisition. Search. To all staff: RE: Acquisition of __ (Name of Company)__. Learn about the likely impact of a merger-and-acquisition deal on the target company's employees, including their benefits and adjusting to a new climate. Acquisitions are stressful for employees. If you deny the rumors when you are negotiating, any communications you make regarding the merger or acquisition from that point on will be suspect. Tips for Writing Employee Emails and Letters . For instance, if you are writing to terminate your contract with the … Should you … Keep in mind that whatever you tell employees will leak to the press, vendors, suppliers and customers. On Wednesday mornings - learn, engage and connect with entrepreneurs in your community over a cup (or two) of coffee. Certification Workshop. We educated our employees on what an acquisition means and how it works. When Ingram Micro was acquired by Tianjin Tianhai for $6 billion today, Ingram CEO Alain Monié sent the following email to all employees.ChannelE2E has not edited the memo, but we’ll be back with blog updates with our analysis on Thursday. Postal Code : XXXXXXX Phone Number : 0000 - 123456789 E-mail ID : sendersname@companywebsite.com Date : Reference : TO : Addressee's … To put it straightforwardly, it is going to be owned by someone else/body henceforth. This grievance letter is for an employee of a large telecoms company who had to be taken off work due to depression. If you are going to ask for a vacation, it must be given to the company no less than 3 days prior to your target date. Work with a mergers and acquisitions professional to learn what legal obligations you have regarding employee communications. Deciding what to tell my employees, and when, was a tricky decision for me when I sold TEAL Electronics. Login Create an account. This acquisition comes at a propitious time for us. Introduce the New Brand 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. Unfortunately, because Amazon is a public company, there are securities … We gave status reports at our monthly all-hands meeting every step of the way through the acquisition. Following common communications strategies to properly inform your employees during these types of business deals can help your company maintain its continuity. MEMO. From : The Sender's Name, Door Number and Street's Name, Area Name, City. In most situations where the employees or managers are not purchasing the company, they will need to be informed in the subtlest way possible after the buyer signs the sales agreement. Bob Travolta], We are glad to state that we have recently acquired [DESCRIBE BUSINESS ACQUIRED, ex. M&As also … During your career, you might be responsible for informing your employees about a merger or acquisition. It also includes information about the types of warnings that are given to the employee regarding their behavior, as well as about the final information about the check and the benefit. Now what? You have an idea for a business. All rights reserved. Good employees might get nervous and leave, reducing the acquisition value. By this point, the employees probably have suspicions already about a possible sale because they’ve likely seen … MindBridgeMarketing: Change Communications -– Mergers & Acquisitions, Cutting Edge PR: Change Communication -- Good Communication is Essential for Successful Mergers and Acquisitions. Letter of Announcement of Acquisition: This Letter should be written in The Letter-Pad of the Company. 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. The buyer was a public company and feared premature disclosure. Your Letter to Employees. We encouraged a culture of honesty, and hiding (or worse, lying about) acquisition talks undermined that value. © 2006 Bill Carpenter. Subscribe now! Rumors are caused by an information vacuum plus the potential for surprisingly good or bad news. Dear [NAME, ex. This letter serves as notice that your employment will be transitioned from the Company to Cisco effective as of the date the Acquisition becomes final (the “Closing Date”). Communicating an Acquisition to Employees. Example 4: Sample Letter for Acquisition & Merger. Team –. Immediately upon execution of this Letter, Seller shall, and shall cause the Seller Group to, terminate any and all existing discussions or negotiations with any person or group of persons other than Buyer and its affiliates regarding an Acquisition Proposal. Want to be up-to-date with the latest news and updates from Kauffman Entrepreneurs? Date. Seller represents that no member of the Seller Group is party to or bound by any agreement with respect to an Acquisition … This is why acquisition business letters are written, and this article is going to focus on teaching you how to create one. Rumors that circulate among employees can cause morale problems, loss of productivity and employee flight to competitors. Your email address will not be published. While I cannot give you any firm assurances, I can say that the quality of the employees we have here was an important valuation factor in _____'s decision to … Edmunds has a bachelor's degree in journalism. We told everyone from the company’s early days that it was our goal to build – and sell – the company some day. Upon the successful completion of Cisco’s acquisition ... if you accept this offer, you will become an employee of Cisco or a subsidiary of Cisco. Collection of change of ownership letter to vendors template that will perfectly match your demands. We told the acquirer that our culture required us to be honest with our employees, and that they could trust them to not make premature public disclosure of the acquisition. Save my name, email, and website in this browser for the next time I comment. He is an internationally traveled sport science writer and lecturer. Acquisition Strategy Templates; Acquisition Agreement Templates; But, in order to purchase another business, the owner has to be informed that there is someone who is willing to buy it first. Example 3: Company merger letter. Company Name or Letterhead Address City, State Zip. Employees have good reason to fear an acquisition. 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. Kauffman FastTrac can help you clear the path from idea to business start. Copyright 2021 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. All Ingram Micro Global Associates: Some employees who leave might take company assets or secrets with them, so letting essential staff members know they are safe can reduce the likelihood of this happening. You might have your new company policy guide ready to distribute, especially if you are merging two companies with very different corporate cultures. If time is of the essence (for example, if you have a family emergency and need to take the day off), email is likely the best choice. Apr 29, 2011, 9:40am EDT Updated Apr 16, 2015, 1:35pm EDT. Required fields are marked *. Make the announcement to all of your employees at once, before you inform the media, vendors, suppliers or other parties. Company Name or Letterhead Address City, State Zip. Addressee Address City, State Zip. If your employees hear the news from a source other than you, they will wonder why you didn’t tell them first, increasing their paranoia. This can cause a panic among employees, because companies that merge often have redundant employees, with one set being reassigned or terminated. If the transaction is an acquisition, let employees know if the two businesses will operate independently or whether they will share administrative functions. Fearful employees might try to undermine the deal by giving the buyer a negative impression. Note that formal thank you letters or appreciation letter to employees don't necessarily have to come from HR departments! Merger Integration. Start the letter with a statement that informs the recipient of the purpose of your letter. Left to their own devices, most employees would see only the threat, not the opportunity an acquisition can present to them. Then we told our employees we couldn’t tell them the name of the public company buying us and promised to give them enough information to enable them to assess the impact on their jobs. And in doing so we were able to accentuate the positive aspects of the acquisition. Consider creating an employee intranet with details about the deal. After she found that she was passed over for a pay raise the result of this letter was a decent pay-out for her. Competitors may pounce and try to steal customers by implying that the sale may … Why limit your boost of community, entrepreneurship, and connections to the live events? California] [Give Details of BUSINESS ACTIVITY CARRIED ON BY ACQUIRED BUSINESS, ex. These letters … And that is just one issue to worry about! The letter is delivered to the employee because management expects it to be accepted. They appeared to appreciate being told what to expect compared with guessing. This new policy will enable the company to seek temporary help, if needed and to schedule vacations to other employees … When deciding whether to send a physical letter or an email, think carefully about the situation. 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. These formal thank you letters or appreciation letter to employees … Whether you’re a technical recruiter who lives and breathes Boolean strings or a novice hiring leader just getting to grips with the ins and outs of screening and onboarding candidates, a We found a buyer who valued our management team and wasn’t planning large layoffs, which would have made it harder. Nevertheless they had fears too. How I Learned to Treat Fear as a Tool for Personal Growth, International Protection of Brands and Patents, Get caffeinated at your local 1 Million Cups. This merger … For example, they could be application and cover letters to apply for jobs or thank-you letters after … You’re going to read in the news this morning (or afternoon for the London team) that we’ve entered into an agreement to be acquired by Cisco. View Template. If your employees hear the news from a … Rumors are caused by an information vacuum … I would have shared much earlier that we were in discussions with Amazon so that all employees could be involved in the decision process that we went through along the way. Explain the letter in details providing all the important information. Thank you letter to employees, in some companies, are an everyday thing used to send thank you notes to employees. And that this event would be just another milestone in the maturation of our great company. Grievance letter: Executive demoted & benefits changed. XYZ Co. is a … When composing an official or service letter, discussion style and format is vital to making a good impression. What and When to Tell Employees about a Merger or Acquisition. Work with a mergers and acquisitions professional to learn what legal obligations you have regarding employee communications. This includes department meetings to let staff members know how things will operate going forward. These themes offer excellent examples of just how to structure such a letter, as well as include… Business Letter. If appropriate, reveal the new organizational chart and introduce the new owners, executives and managers, complete with written biographies. Early disclosure gave employees more time to worry and spend their time on politics instead of getting the job done. lays out the foundation for the final deal that will be struck Make the merger announcement on new company letterhead or on stationary or an email template that contains both … Some of our employees even thought it meant the company was going to be closed automatically. Dear Fellow Employees: 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 … There are several things your organization(s) will want to consider before announcing a merger or acquisition. Main … In an employee's eyes, a recognition letter is an appreciated, effective way for a manager or coworker to say thank you. The filing also included a copy of the … LinkedIn CEO Jeff Weiner published an email he sent to employees of the social network following its surprise acquisition by Microsoft. Date. When you inform these employees of the coming change, ask them to help safeguard company property, including data. Search. Because this is a really big deal and Cisco is a public company, I unfortunately wasn’t able to talk about it with all of you before the news hit the wires. Some of our employees even thought it meant the company was going to be closed automatically. Access the tools, resources and guides necessary to start and grow your business — anytime, all online, at your own pace. Work with your accounting department to prepare final paychecks and instructions about benefits and filing for unemployment insurance. I tried to take potential buyers through the building every six months or so, starting well before it was really time to sell. All of our salons will now operate under the new name Supreme Cuts ‘N Curls. Letter to Employees. For people growing great ideas | Kauffman Entrepreneurs | Entrepreneurship.org. Make the announcement to all of your employees at once, before you inform the media, vendors, suppliers or other parties. Constellation CEO Shattuck's letter to employees regarding merger. During the negotiation process, word might get out that the two companies might merge or one may buy the other. Search. We did this to the point until we received employee feedback that they had heard too much and we should focus more on operational issues. If word leaks out that your business is in talks with another company, have a prepared statement ready for employees. Certification Workshop. A Change of Ownership Announcement Letter is a merely a formal announcement to all the faithful and devoted customers/employees that the owners of the company are going to waive the ownership to some other person/body. Acquisition Letter to Customers. All rights reserved. Skip to main content US: +1 214 239 9600 | UK: + 44 203 936 2220. Left to their own devices, most employees would see only the threat, not the opportunity an acquisition can present to them. Letter of Intent Acquisition … The sender of such letters could be an employee or a person looking for a job. Dear Mrs. Hancock: Cut ‘N Curl Beauty Salons recently merged with Supreme Cuts Salons. You’re likely going to have a kiss a number of frogs before finding your prince, so why put everyone through unnecessary stress until it’s a sure thing? Jan. 25 - Jan. 27, 2021 April 28 - April … Decide on the right method. He has worked in the corporate and nonprofit arenas as a C-Suite executive, serving on several nonprofit boards. Here’s what worked well for us: This story turned out well. 29, 2011, 9:40am EDT Updated apr 16, 2015, 1:35pm EDT hard work had... Worked in the corporate and nonprofit arenas As a C-Suite executive, serving on several nonprofit boards legal obligations have... And customers Supreme Cuts Salons that we have recently ACQUIRED [ DESCRIBE business ACQUIRED ex. With the latest news and updates from Kauffman Entrepreneurs jobs or thank-you letters after … CEO letter,... To business start community over a cup ( or worse, lying about ) acquisition talks undermined that.! 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Made it harder managers all had stock options, which would have made it harder inform! Note that formal thank you letters or appreciation letter to vendors template that will perfectly match your.! From HR departments different corporate cultures the way through the acquisition useful in where... With departments and individual employees they could be an employee or a heartfelt thank you moral of this turned. Monthly all-hands meeting every step of the acquisition on their personal future corporate. Many medical records match your demands you inform these employees of the acquisition on their personal future executive, on! Employees might get nervous and leave, reducing the acquisition on their future! To customers disclosure gave employees more time to sell the press, vendors, or. Such letters letter to employees regarding acquisition be application and cover letters to apply for jobs or letters... Options, which would have made it harder pounce and try to the... 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