Leakage Strategy
Successfully handling M&A leaks
Premature publication of a company purchase or merger has a lasting influence on the progress of the transaction. Our many years of experience in financial communications helps us advise you on the critical development of a suitable leakage strategy. If announcement of negotiations is unplanned for even a single party, everyone involved is immediately confronted with the challenge of successfully dealing with a leaked deal.
The German M&A market has an above-average rate of deal leaks
The issue of deal leaks is above average in the German M&A market. An Intralinks study shows that an average of 10.3 % of M&A transactions in Germany were prematurely publicized between 2009 and 2014, ranking fourth in a worldwide comparison, and second in the EMEA region behind the UK. The global average of premature transactions for the period from 2009 to 2014 was 7.4 %.
Intentional and unintentional deal leaks
Passing on insider knowledge from the environment of an M&A transaction can be a completely intentional tactical element by any party involved. A public phone conversation about details of a forthcoming transaction is likely to fall into the area of negligence. The fact that in social media, the profiles of employees of a potential takeover candidate are often conspicuously visited by employees of a competitor is a completely new way to thoughtlessly open up purchase interest in the age of social media.
Consequences of a leaked deal
Regardless of whether the transaction is consciously prematurely publicized or not, and whether the target of an intended leaked deal is to influence the price, speed up negotiations or even break off the transaction, the direct result is the rapidly increasing need for communication among many people and institutions – and for at least one party involved at a completely different time than originally planned. From the current investors and lenders to the company’s workforce through to finance and trade media, a variety of stakeholders will want to raise questions and reactions through various channels and expect fast and clear answers. Regardless of whether you are taken by surprise by such a development or not: it is critical for success that you achieve the optimal outcome from such a situation in accordance with your M&A project’s objectives.
The best way to handle M&A leaks
As a specialist in strategic ESG, financial and corporate communication with many years of experience, cometis AG is a reliable partner for the successful handling of M&A leaks. From a portfolio of short-term support in the preparation of time-critical ad hoc or press releases, through the early, strategic planning and preparation of leakage scenarios, to personal interview training and the creation of Q&A catalogs, you can choose the most appropriate steps in your individual situation solution package – we look forward to advising you!
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