In the meantime, we will be working with you individually to give you direction in finding alternative insurance. 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. Goals, impacts, and new objectives of this transaction. Dear Mrs. Hancock: Cut ‘N Curl Beauty Salons recently merged with Supreme Cuts Salons. Because of this, your transaction team will want to partner with both company’s human resources departments to ensure that you have a plan to retain important employees. Any quotes from involved parties, such as the CEO, or other relevant people involved in the merger and acquisition deal. Acknowledge employees’ feelings as some may feel a genuine sense of loss. Here's just what else you should you take into consideration when crafting an e-mail cover letter. 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. 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. Company Name or Letterhead Address City, State Zip. Address immediate questions employees will have in their mind, such as those about layoffs or new openings, benefits, share values, or market position. We have a fine company–a company with people who have the highest values and interest for their colleagues. The details of that agreement are described in the accompanying press release. Wednesday, April 1st 2015. The next few weeks will be busy, exciting, and challenging ones. Create a New Letter. I simply want to tell you how pleased I am about this merger. Sincerely, Example 3: Example of Change of Ownership & Merger . 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. After a merger, employees will naturally be concerned about terminations, since the new company won’t need two accounting or human resources departments. Will it allow your organization to expand into a new market? Address Mr. Mark Thomas . Note that formal thank you letters or appreciation letter to employees don't necessarily have to come from HR departments! It will help align all of your employees in both entities under a common goal. Constellation Energy Group Inc. CEO Mayo A. Shattuck III sent the following letter to employees Thursday on the proposed merger between the … City, State Zip. 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. And that is just one issue to worry about! Announcing the good news in an acquisition announcement letter raises the morale of not only your customers but the employees as well. Dear M. B. This new direction offers an even more promising horizon. Announce the merger, acquisition, or restructuring up front. Updated logistical information, such as a new website, location, or logo. Company Merger Letter To Employees Source: www.mergerintegration.com Company Merger Letter To Employees Source: 0.academia-photos.com Company Merger Letter To Employees Source: www.feiengineers.com Company Merger Letter To Employees Source: lh3.googleusercontent.com The goal? We anticipate no changes in coverage or costs as a result of this agreement. Results based on four collections of data indicated that the preview reduced dysfunctional outcomes of the merger. Staying human during these times could be the difference between failure and success. Also, make sure that your human resources team is prepared to handle all types of questions that could come up from the employees. Mergers and acquisition end up having an unfavorable effect on employees who experience difficulties in working together with the new addition to the workforce. Finally, we pledge those leaving the company every reasonable assistance in finding suitable employment. Company Merger Letter To Employees Source: itlever.files.wordpress.com. By Bill Snow . In closing, let me say I am pleased to make this restructuring announcement. The merger values Ingram Micro at approximately $6.0 billion, or $38.90 per share. 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. There’s a bright future ahead. Published Wed, Mar 20 2019 11:13 AM EDT Updated Wed, … Importantly, the unions’ agreements represent an enhancement to … by emily on March 20, 2012. by Preston Ayres. The merger values Ingram Micro at approximately $6.0 billion, or $38.90 per share. Address how the merger will affect employees directly. As you can imagine, this decision to establish a restructuring reserve has been given thorough and deliberate consideration by the company’s management. Our company officials and those of Freeman Inc. announced today an agreement has been reached on the merger of our two companies, to be effective May 9. Your medical benefits and your hospitalization coverage will remain in force through the end of the year. 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. Merger Integration. Founder and Chairman of Peterson Enterprises Ltd. [Sub: Business proposal for a merger] Dear Mr. Thomas, This letter … Merger Integration Consulting Services Merger Integration Consulting Services Merger Integration. There are several things your organization(s) will want to consider before announcing a merger or acquisition. Let readers know where they can direct other questions about changes. Mergers and acquisitions: How to keep employees from leaving. This will be a collaborative process, just as most things are here. Most of our divisions will experience very little, if any, change in their day-to-day operations. Such as your marketing team, legal team, shipping team, etc. https://blog.careerminds.com/letter-of-intent-for-your-merger-or-acquisition Make them strategic partners." Date. Mergers are tricky business. We will be adding two new product lines to our own–automotive parts and small household appliances. Employees in one plant received the preview and those in another received limited information. This letter will help you inform both your current and soon to be account holders of the upcoming merge and what to expect. JOHNSON CITY, Tenn. - … As stated above, most mergers and acquisitions fail. Merger. 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. Download Letter. But did you know that a lot of these failures result from human capital issues? 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. This is a very exciting event for both companies, for our employees and our clients. 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. We are pleased to say we now have a goal, and we have a plan. Constellation Energy Group Inc. CEO Mayo A. Shattuck III sent the following letter to employees Thursday on the proposed merger between the … A pending merger; Going out of business; The layoff letter should include the criteria used for selecting which workers would lose their jobs. We want to put more power and authority in the hands of those closest to our customers and their needs. Contact information for representatives at your organization. As Irontide continues to grow, we have found it necessary to continue to make organizational changes. 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. As you probably know, in most cases our own people have participated in the studies and understand the importance of these plans and this action. Jan. 25 - Jan. 27, 2021 April 28 - April 30, 2021 August 23 - August 25, 2021 . Wrong! What do they sell?). From: Mr. Peterson. Employees in one plant received the preview and those in another received limited information. Although mergers and acquisitions are typically used as an umbrella term to represent two companies … Certification Workshop. The investor group has requested existing management of Irontide remain with the company after the transaction is complete. Certification Workshop. Sample Letter: Employee Communication During M&A. 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. What and When to Tell Employees about a Merger or Acquisition. 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. Make certain your cover letter includes these three things. Today Grafton, Inc. announced an agreement has been reached with certain investors to acquire the stock of Irontide. We also expect all benefits to remain as they now are. Employee Benefits Issues after Mergers and Acquisitions. Make the merger announcement on new company letterhead or on stationary or an email template that contains both existing company logos. 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. Your benefits such as medical and life insurance and our stock ownership plans will remain intact. This week Fullerton, Inc. will begin a major restructuring effort to decentralize our operations and push decision-making lower in the organization. Certification Workshop. We have undergone this reorganization in our Eastern Division to provide better, more direct service to our operations staff. welcome letter to acquired employees; welcome letter after acquisition {0 comments} Sample Business Letter of Intent Letter. 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. A lot of the employees at the two organizations after the deal will have questions about how this will affect their individual employment. 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. Before you announce the news of the merger and acquisition to the affected employees, you need to have a solid human resources plan in place so that your employees have a road map for moving forward. This merger will start an exciting next chapter for all Ingram Micro stakeholders, including our vendor and customer partners and you, our associates. [ Register | Login ]  Competitors may pounce and try to steal customers by implying that the sale may impact product quality or through some other scare tactic. If you send your cover letter as an accessory, you can send it as either a PDF data or Word paper. Addressee Address City, State Zip. How Mergers and Acquisitions Impact Employees . Mergers and acquisitions are an exciting and challenging area of business. Of course, it will be several months before we can arrange all the day-to-day operational changes throughout the organization. Thank you for your patience in this transition period. The merger will provide the path to improved compensation and benefits for employees. Be sensitive to the time it may take for employees to accept change post merger. Wednesday, April 1st 2015. Although this merger will not immediately increase our market share in the _____ arena, our plans for growth should position us to challenge the industry leaders within the next three to five years. It may even lead to non-cooperation with the other merging company’s employees. (Around 1 in 8 employees are found redundant after a merger or acquisition.). Getting There. We are making every effort to get input and data from all groups about how to increase our productivity while retaining our superior service. Then there’s the actual work of merging two organizations. 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. Date. 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. 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. 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. We can answer few other questions at this time because all decisions regarding _____ are still pending. Over the coming months we will be working with each of you on becoming Cisco employees. Whether that nervousness comes from fear of being laid off (which is completely valid, as 1 in 8 employees are found redundant after a merger or acquisition), or that they won’t like the new company culture. 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. 16) Select the Next: Preview your letters button 17) On the Mailings tab, ‘ Preview Results’ Button should be selected. 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. had just announced a merger. We have learned today an agreement has been reached for Farmington investors to acquire the stock of Bledson International. ‹ › PDF Word. Example 2: Announcing mergers letters. We also want you to be part of this exciting opportunity to work out creative solutions to our sudden growth and expanded opportunity. In every merger, confusion, uncertainty, fear and resistance amongst staff can impact productivity and customer service. Promise to provide other details as soon as they become available. 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. 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. 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. Business Letter. Make certain your cover letter includes these three things. The transfer of employment will happen automatically. 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. On the attached pages, we have outlined in great detail the departmental changes. © 2021 Professional Business Documents, Agreements & Letters. Company Merger Letter To Employees For Your Needs. 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. Download Article. An entity to entity merger/acquisition has manifold considerations, movement of employees and their rights being one of the most important aspects. 18) Use the right and left arrow keys to preview each appointee’s letter. If your business has undergone a PAYE scheme merger and your employees receive company benefits, you must submit 2 forms P11D for each relevant employee… (Basically, so that they stay at the company during this critical time after the merger and acquisition.). Keep up the good work. 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). Employee benefits are a complicated venture after a merger or an acquisition. Is it because the company’s technologies are complimentary? Jan. 25 - Jan. 27, 2021 April 28 - April 30, 2021 August 23 - August 25, 2021 . Please be patient with us through any confusion that may arise during this transition time before we reach final agreement. __ (Name of Organization)__ is pleased to announce today, the acquisition of __ (Name of purchased Company)__, a company __ (operating out of …location/specializing in…./etc. Timing is critical, with small windows to conduct due diligence and communicate any changes to employees, shareholders and customers. 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. I’m sure the question in most minds is that of layoffs.  |, Announcing Mergers, Acquisitions, or Restructuring, Company Name or Letterhead Information on the specific business being merged or acquired (What do they do? The majority of mergers and acquisitions end up failing their original objectives. by Preston Ayres. 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. The letter has optional clauses for use before or after the transfer. Here is the full text of the letter … Introduce the New Brand. A A. wellmont-mountain-states-png-2048062-ver1-0.png . I’ve outlined below the major reporting changes…. We do not know exactly what that means as far as staffing, employee relocation plans, and project schedules. A merger or acquisition will create numerous questions in the minds of stakeholders. All of us have an exciting future around the corner. 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. While retaining employees after acquiring a company, it is important that you make your selection based on ‘merit’ and not on the ranks. You will report to the division directors, who will report to the same regional directors. All of our salons will now operate under the new name Supreme Cuts ‘N Curls. Our headquarters will be moved to the Chicago office sometime within the next year. With this acquisition, Hosack is now the largest and strongest ______ manufacturer in the Northwest. Click Fields > Insert Field. At the Merge Letters screen a blank letter appears (or click File > New. Your merger announcement letter should solidify your company’s mission, explain anticipated changes and provide the customer with a point person to help navigate new policies and procedures if questions or concerns arise. Well, explain this to your employees. Founder and Chairman of Peterson Enterprises Ltd. [Sub: Business proposal for a merger] Dear Mr. Thomas, This letter is to … As mentioned above, retention is a huge issue for organizations after a merger or acquisition. If you tell the employee that the company is not for sale and then the company makes a sale announcement two months later, that employee will feel betrayed and her trust will be broken. We look forward to your help with our operational plans for growth. This is a one-time bonus that the organization will give out to high-impact employees. Merger Integration. 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. I’m confident you will come to share my enthusiasm for this decision. We appreciate your courtesy in addressing all your concerns to your immediate manager. And that is just one issue to worry about! If you explain the reason for the transaction, your employees will be more supportive of it. During a merger, employees can experience a range of emotions. This merger provides an edge on the competition. 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. Merger Integration Consulting Services Merger Integration Consulting Services Merger Integration. We are making every effort to answer all your questions with speed and accuracy. 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. ); Begin typing your letter and insert data fields as needed. Letter to Employees - Merger or Acquisition Announcement. We’re glad you’re on board for this promising new future. 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:. by emily on March 20, 2012. Celebrate your accomplishments and history. 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. 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. M&As also cause extreme retention problems at organizations as well as cause human capital redundancies. Internal Memorandum The only visible change evident immediately will be…. Company Name or Letterhead Address City, State Zip. People care about where they work. Your manager will let you know which departments will be affected as soon as these decisions have been made. Times of change are more successful when people have a leader to follow. This means that the purchaser can’t just buy part of an organization, or just the intellectual property, but all of the organization’s assets. Share past memories and allow employees … Make sure that you provide them with contact information for a human resources representative that can answer these questions. We appreciate your continued cooperation, interest, and contribution during this transition period. January 19, 2012. In the interim period, we anticipate operating as we do currently; no changes in management have been discussed or approved. Empathy for employee needs breeds the help you need to manage change. Writing and sending an honest formal thank you letter is an important step in I want to emphasize that relatively few of our divisions and few of our employees will be affected by this decision. Will affect their individual employment lower in the release, we anticipate no changes coverage. 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