Here's just what else you should you take into consideration when crafting an e-mail cover letter. From: Mr. Peterson. M&As also cause extreme retention problems at organizations as well as cause human capital redundancies. These changes are beneficial for all our employees because we have opened new opportunities for advancement. To all staff: RE: Acquisition of __ (Name of Company)__. There are several different departments in your organization who will need this new information. Employees at both companies will get nervous about their future at the new entity and start to look for a new job. We also want you to be part of this exciting opportunity to work out creative solutions to our sudden growth and expanded opportunity. Merger. 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. On the attached pages, we have outlined in great detail the departmental changes. 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. https://blog.careerminds.com/letter-of-intent-for-your-merger-or-acquisition The investor group has requested existing management of Irontide remain with the company after the transaction is complete. 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. We will be adding two new product lines to our own–automotive parts and small household appliances. Communicate how the merger will or will not affect your employees’ career path – be available and listen to their personal concerns. A A. wellmont-mountain-states-png-2048062-ver1-0.png . Saying thank you to employees by sending them a formal thank you letter is a nice way of showing that you appreciate their hard work and effort and that you are happy to have them on your team. 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. What and When to Tell Employees about a Merger or Acquisition. As you can imagine, this decision to establish a restructuring reserve has been given thorough and deliberate consideration by the company’s management. The transfer of employment will happen automatically. While retaining employees after acquiring a company, it is important that you make your selection based on ‘merit’ and not on the ranks. Internal Memorandum Your close contact with the customer will offer the insights we need to take advantage of our leadership position. Importantly, the unions’ agreements represent an enhancement to … Thank you for your patience in this transition period. Competitors may pounce and try to steal customers by implying that the sale may impact product quality or through some other scare tactic. Mergers and acquisitions are an exciting and challenging area of business. Business Letter. All Rights Reserved. There are several ways to do this. 18) Use the right and left arrow keys to preview each appointee’s letter. Your organization is merging or acquiring for a reason, right? 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. 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 … This agreement is subject to several conditions that must be met before the acquisition is final, and this negotiation … M&A Valuation: What’s HR’s Role During This Stage? We appreciate your continued cooperation, interest, and contribution during this transition period. 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: 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. 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. We anticipate very little, if any, disruption in our normal day-to-day operations. Keep up the good work. City, State Zip. Certification Workshop. January 19, 2012. Mergers are tricky business. Example 2: Announcing mergers letters. by emily on March 20, 2012. January 19, 2012. Instead, tell her that the owners are exploring some options, including bringing in investors to help take the company to the next level. Communicate how the merger will or will not affect your employees’ career path – be available and listen to their personal concerns. We have undergone this reorganization in our Eastern Division to provide better, more direct service to our operations staff. We have learned today an agreement has been reached for Farmington investors to acquire the stock of Bledson International. Informed of all the events and plans as we ourselves learn of them ourselves the corner and... Conduct due diligence and communicate any changes to employees, in some capacity and! 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