And analysts' initial pronouncements tend to have a trickle-down effect, tempering the media climate and overall mood surrounding the deal. Naturally, it's good to anticipate the questions that investors may ask, but what's more critical is responding quickly to specific points of criticism. They might have been better off developing their own product line. Most analysts and institutional shareholders understand the true value of companies, regardless of what they're trading at in the marketplace. Watching and Waiting Ironically, the most lethal investor relations errors occur when the pressure is seemingly off.
Employees get frustrated and confused - and investors monitor their actions closely.
A merger that appears strategically sound at the starting gate can quickly stumble if poor internal communication results in senior-level management defections. Lose your best talent, and in many cases, you lose the intellectual capital that's holding the deal together. Companies that announce their new senior management teams quickly perform better over time and are less likely to suffer from employee inertia and investor fallout. But such dramatic moves constitute a big pill to swallow - for both investors and communicators. If you've got Sunday available as an announcement day, take it, Taufield urges.